Strategy Archives

December 13, 2023

Bill Hornbuckle on MGM Resorts’ global growth ambitions

MGM Resorts’ home town of Las Vegas evolved beyond all recognition during Bill Hornbuckle’s time in gaming, but it’s not the only show in town. He’s eyeing up expansion across a range of global markets and expanding into new channels.

Things are booming in MGM Resorts’ home town, but it’s much more than a Vegas-based business. Hornbuckle leads global development efforts and having taken MGM into Macau he’s still looking east.

MGM Resorts looks east

Japan’s ministry of land, infrastructure, transport and tourism certified plans for a $10bn integrated resort in Osaka in April. After finalising agreements with Osaka Prefecture and City, construction can begin on the property.

Marginally closer, opportunities are emerging in the United Arab Emirates. First Wynn sealed an agreement for a resort in Ras al-Khaimah. Then a federal regulator, the General Commercial Gambling Regulatory Authority (GCGRA) emerged paving the way for resorts in other Emirates.

MGM is focused on Dubai, Hornbu..

December 7, 2023

Fitch “neutral” on global gaming outlook for 2024

Fitch Ratings forecasts global gaming outlook for 2024 as “neutral”, citing pullback in certain US markets and potential stagnation in Europe.

A new report from Fitch Ratings forecasts the global gaming outlook for 2024 as “neutral”.

It is the second straight year Fitch has selected a “neutral” view for its gaming outlook. Fitch cited “slight pullback” from the “pent-up demand” in the United States as one of the reasons for its classification.

In general, the US is still performing well after a “robust” 2022. However, Fitch’s 6 December report details how regional gaming is showing some indication of stagnation.

Elsewhere, Asia Pacific is flourishing under improved demand thanks to the mass market returning after the Covid-19 pandemic. Singapore, meanwhile, continues to “perform above expectations”.

Limited regulation in the Middle East and Africa (part of EMEA) is proving beneficial, alongside the rise in US online profitability. Over in Europe, The UK Gambling Act review is exp..

December 5, 2023

BetMGM expects to reach $500m EBITDA by 2026

BetMGM aims to reach 25% market share in the US by 2026, as well as delivering $500.0m (£396.1m/€462.2m) in positive EBITDA.

BetMGM set the 2026 goal after revealing it expects to be at the higher end guidance for 2023. In the current financial year, revenue should be between $1.80bn and $2.00bn, according to CEO Adam Greenblatt.

At an investor presentation yesterday (4 December), Greenblatt detailed how BetMGM, a joint-venture by Entain and MGM Resorts International, was expecting to be self-funding from 2024 onwards.

The business sees next year as an investment period, having already proved profitability in 2023. While it expects to achieve a profitable H2 2023, BetMGM expects negative EBITDA for 2024 in what it bills as an “investment year”.

Investment plans

When pressed on how much cash was available to invest, Greenblatt and CFO Gary Deutsch would not disclose the exact amount. However, the pair said plenty of money is available to “compete and invest for growth at the hi..

December 4, 2023

ESPN Bet: The view from the top

Hot off the launch of ESPN Bet, Mike Morrison, vice-president of sports betting at ESPN, explains how sports betting’s biggest launch is set to upend the market – and what he thinks makes it the premier choice for sports fans.

When we first spoke with Morrison in August, he was adamant about ESPN Bet’s potential to be the best sportsbook on the market. At the time it had only been weeks since ESPN had clinched its $1.5bn (£1.18bn/€1.37bn) deal with Penn Entertainment, officially choosing the operator to manage the ESPN Bet sportsbook.

Just over three months later, ESPN Bet has burst onto the scene. With the launch being so highly anticipated, the best place to start is by establishing how it went.

“Really smooth,” according to Morrison. “We’re thrilled. Everything is working very well. Some of the early reviews we’ve seen are really good. Teams are energised and excited on both sides.”

ESPN Bet launched in 17 US states on 14 November

The whirlwind saw ESPN Bet hit 17 US states on ..

November 7, 2023

BHA aims to slow decline on British horseracing betting

The British Horseracing Authority (BHA) has set out a series of changes for its 2024 fixture list, including amending how events are run, to slow what it says has been a decline in betting on British races.

Published last month, the BHA 2024 fixture list includes 170 “Premier Racedays” with higher prize money and more star horses. The BHA has also committed to investment to improve Sunday racing and increase competitiveness across the fixture list.

The plans are the first phase of a new long-term industry strategy, with changes to run for a two-year trial. The Horserace Betting Levy Board (HBLB) will support the plans by providing an additional £3.8m (€4.4m/$4.7m) in funding.

Part of the reason for these changes, the BHA says, is to support the betting side of racing.

Switching Saturday fixtures and new Sunday betting session

The organisation has set out three primary, betting-related targets for the upcoming 2024 season. The first of these is to improve the performance of Saturd..

November 1, 2023

How Adam Greenblatt is sharpening BetMGM’s competitive edge

Adam Greenblatt set BetMGM on a path to profitability and the business will be self-sustaining in the second half of 2023. How will he make sure the operator stays ahead in the US sports betting market as new competitors emerge?

July’s update on BetMGM’s first half performance confirmed the operator was on the path to profitability outlined by CEO Adam Greenblatt in June.

The business will be self-sustaining in the second half of the year. There will be no additional equity investment from joint venture partners MGM Resorts and Entain, beyond the $150m committed for 2023.

BetMGM CEO Greenblatt believes a new phase of competition could be imminent in the US

Greenblatt believes that BetMGM could operate as a separate business and stand on its own two feet if necessary.

“It could be a permanent state, absolutely,” he says of BetMGM as a self-sustaining entity. “[But] I think whether or not that is indeed a permanent state depends on how we want to ramp up and how quickly we want t..

October 25, 2023

LiveScore Group’s Sam Sadi builds his media empire

LiveScore Group aims to become the world's leading sports media operator, and sports betting is just the start. Chief executive Sam Sadi explains the masterplan.

“I remember the days when we used to press F5 to refresh the LiveScore.com website. That’s how long back it was,” says LiveScore Group chief executive Sam Sadi.

LiveScore launched in 1998, offering visitors football scores. Gamesys acquired the business in 2017 and, following that operator’s £490m sale to Jackpotjoy Group and then the £2.0bn merger with Bally’s Corporation, LiveScore Group stands alone as an independent business led by Sadi.

LiveScore turns 25 today, starting out providing live match data to players in 1998

The LiveScore Bet sportsbook launched in 2020, complementing the affiliate arm, not to mention its second brand, Virgin Bet. But Sadi isn’t only interested in building a sports betting business.

“We have a plan we’re implementing,” he explains. “You could call it a ten-to twenty-year plan. We i..

October 19, 2023

ESPN Bet unveils brand

Penn Entertainment and Disney’s ESPN have unveiled the brand for their upcoming mobile sports betting offering, ESPN Bet.

ESPN Bet’s mint green and navy logo is to feature across the multiple ESPN channels, including in-app, on social media and in television programming.

The sports media company added the logo will give prominence to the “ESPN” brand. However, the mobile sportsbook application itself will be branded as the letter “E” within a “B”.

the espn mobile application brand

ESPN, which is the largest sports media brand in the US, said this “creatively expresses the idea that ESPN, in partnership with Penn Entertainment, is launching a sportsbook for fans, but at its core is still ESPN, the most trusted brand in sports.”

According to Penn president and CEO Jay Snowden, the app is set to launch in November after a five-month development period.

This followed the August announcement that Penn would be launching an ESPN-branded online sports betting offering through a $1.5bn ..

October 17, 2023

G2E 2023: Like Covid never happened

The dog days of the pandemic feel long in the past and the gaming industry was in a bullish mood at G2E 2023, Buck Wargo writes. Despite potential economic headwinds, international expansion and high hopes for igaming mean many left Las Vegas with the sense the industry is in good health.

It was like the pandemic never happened.

The Global Gaming Expo returned to Las Vegas last week, upbeat and optimistic about igaming’s future.

The industry faces headwinds in the coming months from the US economy and a potential Culinary Union strike in Las Vegas, but attendees at the show remained positive.

G2E attracted more than 25,000 people over its four days, just shy of 2019’s record 27,000 turnout. Attendance continued to bounce back after 2020’s cancelled event and a 2021 edition that drew only 13,000 delegates.

A greater return of international visitors and exhibitors – more than 125 countries were represented – helped boost attendance numbers. There were 368 exhibitors, up from 350 a y..

October 4, 2023

Paddy Power closes 21 shops in Ireland

Flutter UK and Ireland has closed 21 Paddy Power shops in the Republic of Ireland, affecting 78 members of staff.

The list of affected shops includes Dominick Street Galway, Kilkenny, Rathdrum and Templemore. In a statement, Flutter said the decision to close consisted of two main facets – lease expiries and early terminations. It added the decision came after a review into its “high street estate”.

Paddy Power is among Flutter’s biggest brands in the UK and Ireland, alongside Betfair and Sky Bet.

Flutter stated that the closures leave 230 active Paddy Power shops across the Republic of Ireland.

Flutter added that the “majority” of the 78 members of staff would be offered redeployment across Paddy Power’s remaining shops. However, it admitted that the closures would lead to a “small number” of job losses.

“As with all businesses in the retail sector, we regularly review our estate to ensure we are operating efficiently and meeting the evolving needs of our customers,” said David N..

October 4, 2023

Fanatics completes PointsBet US purchase in New York and Wyoming

Fanatics Betting and Gaming (FBG) has edged closer to taking full control of PointsBet US after completing the acquisition of its operations in New York and Wyoming.

PointsBet New York LLC has been transferred to FBG. This follows the satisfaction of certain conditions in the state including approval from the New York State Gaming Commission.

Meanwhile, ownership of PointsBet Wyoming LLC has also transferred to the FBG division of sports retail giant Fanatics.

Transfer of additional US state operations to FBG will take place as approvals are obtained in each state. PointsBet says subsequent completion in this market is tracking as planned.

The double completion come after PointsBet last month also secured approval for acquiring PointsBet US in eight other states. These comprise New Jersey, Pennsylvania, Colorado, Iowa, Kansas, Maryland, Virginia and West Virginia.

PointsBet will continue to operate in Illinois, Indiana, Louisiana, Michigan and Ohio until FBG closes on selected sta..

October 2, 2023

FDJ completes acquisition of ZEturf

French national lottery operator Française des Jeux (FDJ) has finalised its acquisition of online horse racing betting site ZEturf Group.

The announcement completes a process that began in November last year when FDJ struck the acquisition deal. The transaction places ZEturf’s value at €175.0m (£151.6m/$185.0m).

Completion comes after the French Competition Authority (l’Autorité de la Concurrence) gave its approval to the deal last month.

Founded in 2001, ZEturf employs approximately 100 people and generated over €50.0m in revenue in 2022. Alongside online horse race betting, it offers internet sports betting via the ZEbet brand.

“The acquisition of ZEturf marks a new chapter for FDJ,” CEO and chairwoman of FDJ, Stéphane Pallez, said. “It strengthens our position in the French market for online games open to competition.

“Following the launch of our poker business, our entry into the world of online horse-race betting rounds out our diversified online range and bolsters FDJ Group..

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Tag: Strategy