MGM Resorts casinos lose big, but sports gambling operations save the day
By Bob Garcia
The casino operator reported losses of more than $500,000 in the third quarter of the year
Casino operator MGM Resorts lost more than half a billion dollars in the third quarter of 2020, says the company sees “signs of stability and recovery.” MGM Resorts reported an operating loss of $495 million and a net loss of $535 million on Thursday. MGM’s US businesses did better with revenue down a mere 40% to $557 million, while earnings fell 46% to $146 million. Even with the pandemic affecting business, MGM has now opened all its US properties. CEO Bill Hornbuckle suggested MGM might close certain properties as they holiday season approaches.
BetMGM, the joint venture with UK gambling operator GVC Holdings, should generate revenue of $150 million to $200 million this year, according to Hornbuckle. MGM won’t let the losses in revenue from its land-based casinos “get in the way” of prioritizing online BetMGM’s growth. BetMGM’s sports betting app is up and running in four states, and MGM says it’s boosted its combined market share from 4.5% in January to 8.7% as of September.
BetMGM looks forward to opening online betting in Tennessee this Sunday and hopes to open for business in Michigan by the end of the year. BetMGM operates retail sportsbooks in five states at this time and plans to have online casino and poker open in three states before New Year’s. BetMGM says that it is largest iGaming operator in New Jersey with a nearly 18% market share. In addition, BetMGM received approval to launch in Pennsylvania’s online gambling and sports betting market from the Pennsylvania Gaming Control Board, on Thursday.