[ad_1]
Game companies were extremely excited by the Supreme Court's decision earlier this year to allow sports gambling in the United States. MGM Resorts (NYSE: MGM), Boyd Gaming (NYSE: BYD), and Caesars Entertainment (NASDAQ: CZR) have already announced sports betting extensions, both in casinos and online, and this is just the beginning.
Although sports betting may attract the attention of the public, it is not yet a big deal for casinos. In Nevada, betting winnings for casinos amounted to $ 329.1 million, which is slightly lower than games like baccarat and blackjack, which netted $ 1.24 billion and 1.17 billion respectively. billion dollars. But there is a reason why casinos are excited about the long-term growth of sports betting.
Commitment, commitment, commitment
One of the most difficult things for gaming companies is to involve customers when they are not in a casino. Marketing e-mails are often the most important contact of a gaming company with customers when they are absent.
Sports betting could change customer engagement with gaming companies, especially if online betting is spreading. Customers can make mobile bets on their casino accounts, wherever they are in a state, and gaming companies will likely expand their betting options now that gambling is legal for a wider audience.
Overseas games can be a model for the game. industry in the United States. In the UK, players can bet much more than traditional sports scores, such as those who win a match, the line or a lower or higher total score. They can bet on the number of shots of a player during a basketball game, which will mark the first touchdown of a football match or the number of hits that a player receives in a football match. Increased betting options are possible simply because there are more people playing and the casinos have the data to make these bets possible. These are the data that led MGM's contract with the NBA, where he sees a lot of potential for increased engagement with customers.
The game is all about the volume
Sports betting also aims to increase the overall volume of betting on casinos. If there is very little volume, it does not make sense to take complex bets or even make your own odds for a game. But if the volume increases, it makes sense to buy data and engage book publishers for the sports book. It will snowball as more people start to bet on the sport.
Keep in mind that illegal sports betting is already a big deal outside casinos. According to the American Gaming Association, sports betting totals about $ 150 billion every year, but most are underground. Some of these bets will go from bookmakers to legal casinos in states that open to sports betting, effectively moving the volume of illegal sites to legal ones.
A reason to be optimistic about the game in the United States
There will be a number of potential winners in sports betting, and I think investors looking to play in the market should be looking to expand their exposure to sports betting. The partnership between MGM and Boyd will give the two companies 15 physical reach states in which they can offer sports betting as they become legal, and Caesars Entertainment is present in 13 states.
The other area to consider is the service providers who build the betting infrastructure for the casinos. IGT (NYSE: IGT) is already fueling sports betting by MGM, and Scientist Games (NASDAQ: SGMS) announced an agreement with Caesars to use its sportsbook platform in New Jersey and Mississippi. They are in the early stages of building sports betting companies and will likely be suppliers for most early sports betting. These companies have a lot of potential if sports betting take off as the casinos hope.
10 actions we like better than MGM Resorts InternationalBy investing geniuses, David and Tom Gardner have an idea of stock, it can pay to listen. After all, the newsletter published for more than ten years, Motley Fool Stock Advisor, quadrupled the market. *
David and Tom have just revealed what they believe to be the 10 best stocks for investors to buy now … and MGM Resorts International was not one of them! That's right – they think these 10 actions are even better.
Click here to learn more about these choices!
* The Portfolio Advisor returns on August 6, 2018
Travis Hoium has no position on the mentioned actions. The Motley Fool has no position in the stocks mentioned. Motley Fool has a disclosure policy.
Source link
