Many businesses across the world are suffering the effect of the coronavirus even the giants like MGM. While many people turn to gambling in times of hardship, even the world’s most famous and sizable gambling companies are not immune from the bite. A loss of revenue has seen some giants consider merging with other businesses, or change strategies. Nowhere is this more prevalent than in the world of land-based betting. Brick and mortar casinos across the US suddenly realize that online gambling may be the way forward, after staunchly opposing it for over a decade. One company which is now considering jumping ship is MGM.
The Coronavirus Leads MGM to Look Online
The coronavirus pandemic has effectively seen over a thousand casinos closed. Faced with a severe loss of revenue, and an upturn in the legalization of sports betting (for the most part), MGM has decided to act. After years of opposing online gambling this company has seen the light. Deciding that going online is the only way forward.
In Nevada (where online gambling has been legal, to a degree, for a while now), over 90% of revenue came from online gambling this year. MGM is keen to take advantage of the digital gambling realm. Being late to the party has its problems like competition for one.
MGM Aims for the Sports Betting Market
MGM faces tough competition right from the start. Sports betting is now considered legal in eighteen out of fifty states, while online casino gambling is still hotly debated. MGM is not going to find it easy to break into a sector which is valued at over $53 billion a year. According to last year’s reports. MGM are going to have to square off against two already established giants, DraftKings and FanDuel.
Taking on the Giants
DraftKings and FanDuel are predominantly fantasy sports betting operators. MGM will also have to deal with fully-fledged sports books and bookmakers. Such as William Hill, which is currently subject to a multi-million-dollar bid from Caesars Entertainment.
BetMGM has already received permission to debut in Tennessee from November 1. However, licensing was also afforded to DraftKings and FanDuel. Further implying that the competition to win over Tennesseans is going to be rife. How MGM hopes to cope in states where its rivals are already long-established remains to be seen.