MGM Resorts International (MGM) is the top dog regarding iGaming market share. During the company’s Q2 earnings call, the Las Vegas-based operator revealed it leads all online casino operators with a 29% market share through its BetMGM casino app.
Furthermore, the company trails only rival FanDuel when combining market shares for both online casinos and sports betting.
Regardless, MGM CEO Bill Hornbuckle said, “iGaming is the key bottom line of the business.”
BetMGM casino market share
According to Q2 earnings, in the markets in which it operates, MGM holds nearly a 30% online casino gross gaming revenue share. The company’s online casino revenue is 50% higher than its two closest iGaming competitors, FanDuel and DraftKings.
It’s even more eye-catching when factoring that online casinos, including online slots and table games, are only legal in five states.
However, things look different when you combine total market share to include online casinos and sports betting. BetMGM’s market share accounts for just 21%.
Market share (online casino + sports betting):
All four operators are live in NJ, PA, MI, and WV. FanDuel and DraftKings are the exclusive operators in Connecticut.
US online gambling operators have begun to value iGaming more than online sports betting. A primary reason for that is online casinos are not subject to the sports calendar year. In the summer months, when Major League Baseball is the only active professional sport, operators tend to see lower bet volumes. That is not the case when it comes to online gaming.
New Jersey online sportsbooks, for example, have generated $309 million in revenue thus far in 2022. On the other hand, NJ online casinos totaled $815 million during the same period.
Las Vegas casinos also help drive MGM Resorts’ Q2 profits
As for its Q2 results, they were also driven by MGM’s brick-and-mortar Las Vegas Strip properties.
For the quarter, MGM doubled its year-over-year hotel revenue primarily from acquiring major properties like the Cosmopolitan and Aria casinos. The Las Vegas Strip properties accounted for revenue of $2.1 billion, a 113% increase compared to $1.0 billion in 2021.
Chief Financial Officer Jonathan Halkyard said:
“Unlike visitation or the variation month to month that we experienced in the first quarter due to omicron (the COVID variant), our second-quarter ADR (adjusted daily rate) and profitability were consistent through the quarter. Second-quarter occupancy was 92%, continuing the strength that we saw when we exited March.”
Additionally, the sale of MGM’s Gold Strike Tunica in Mississippi to Cherokee Nation will yield $450 million when finalized. That deal is expected to be complete in 2023.
MGM also expects to complete the sale of the Mirage to Hard Rock International by the end of the year. Hard Rock is paying $1.08 billion for the casino.
Other second-quarter details
The company reported net revenue of $3.3 billion for the quarter, a 44% year-over-year increase from the $2.3 billion in 2021.
Hornbuckle said he was proud of MGM’s progress but reassured Wall Street analysts, “there’s more work to be done.”
“We’ve been busy this year with our vision to be the world’s premier gaming company,” he said.
Touching on the company’s journey into the Ontario gaming market, Hornbuckle said:
“We’re exactly where we thought we’d be, particularly with our iGaming business. It’s clearly a real marketplace that is used to iGaming and sports betting and our entry to that is productive and we’re excited about where that ultimately all goes.”
As of writing, shares of $MGM were trading at $35.33.