Betting on BetMGM in the Legal US Sports Betting Industry
The legal sports betting industry in the US market is currently controlled by three major players. FanDuel has been able to establish itself as the No. 1 sportsbook based on market share. It controls more than 30% of the business.
DraftKings is ranked second and it is closely followed by BetMGM. Combined, these three US-based sportsbooks control 80% of the regulated sports betting industry in this country. There are roughly 21 states plus the District of Columbia offering legal sports betting in some form. A few other states such as Arizona and Maryland are hoping to launch later this year.
Of those existing markets, there are around 15 states that offer legal online sports betting. This is where the big three completely dominate the industry.
New Jersey continues to lead the way based on the total monthly sports betting handle. The handle is a measure of the total betting volume based on dollars for a specific timeframe. Another big market for legal online sports betting is Pennsylvania. You can also add states such as Indiana, Illinois, Michigan, and Colorado to the mix as major online betting markets.
Tennessee and Virginia only offer legal sports betting through mobile sportsbook apps. Given that the majority of sports bets placed are through a mobile sportsbook app, this has turned into the primary battle ground among every online sports betting operator.
While FanDuel still enjoys a comfortable lead at the top, industry insider reports note that BetMGM is rapidly closing the gap with DraftKings to become the second-biggest legal US book in terms of market share.
These same three competitors have also upped the ante in the legal iGaming sector for online casino apps. There are four primary states offering legal online casino gambling as follows:
- New Jersey
- West Virginia
A few more states will be joining this list in the months and years to come. As more online casino markets open, this could further enhance BetMGM’s position with its parent company being MGM Resorts International as one of the biggest casino gaming and entertainment companies in the world.
MGM Resorts has already benefitted from the accelerated growth of its BetMGM mobile betting platform. This is expected to continue for the next several years.
With its sights set firmly on the No. 2 position as an online sportsbook, BetMGM has also been making all the right moves through its interactive division.
A joint venture with the UK-based sports betting firm Entain has been very successful. Combined, there are certain business measures that rank BetMGM as the second-biggest book in the legal US market. One being the reported first half earnings for Entain, which trades over the counter as GMVH.F.
BetMGM is currently live in 12 different states with the goal of expanding to 20 legal sports betting markets by the end of this year. This would give the company marketing access to 40% of all sports bettors in the country of legal age.
Due to its heavy promotional program, BetMGM’s online sports betting platform posted a loss of $59 million in operating costs during the first quarter of this year. Industry projections still forecast revenue near $1 billion by the end of 2022.
DraftKings is also live in 12 states for legal online sports betting. Its iGaming casino platform operates in the four states mentioned above. This site’s biggest advantage is still its daily fantasy sports (DFS) operations in a total or 44 states. This gives DraftKings a clear edge in adding legal sports bettors when launching in a new rollout market.
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