The sports betting industry is a highly competitive one, and there is virtually no room for anyone else except the big names in the business. The size, resources, and ability to reach huge crowds is what separates truly successful betting exchanges sites from all others. In this article, we are going to learn more about the industry’s forerunners and what makes them so great.
Sports Betting Is Back on the Menu
The global pandemic has put a temporary stop to all sporting activities, and the sports betting business was hit tremendously as a result. However, as these restrictions imposed by the spread of the virus begin to ease, the sporting events like ice hockey games are taking place, which means the punters can get back to placing wagers on their favorite teams and competitions.
The sports wagering part of the gambling industry had been growing exponentially before the pandemic sabotaged it, but not all is lost. Some emerging legalized markets, such as the one in the USA, are beginning to take a greater share of the business and stimulate the global expansion of sports wagering.
Ever since the USA made sports betting legal in 2018, it has been difficult to pinpoint exactly how big its market has become, but the growth estimates are astounding. Some independent research companies, such as Gambling Compliance, have forecast that the USA sports betting market will be valued at around $7 billion by 2024. On the other hand, the forecasts made by the Morgan Stanely investment bank say that those numbers can reach even $12 billion by 2025.
Who Will Be the Major Players?
It is a no brainer that all important gambling companies across the USA will want a piece of the sports betting pie, but not all have the potential to claim it. The following companies are projected to benefit the most from entering the incipient sports wagering market in the USA thanks to their budgets, the rise in popularity in global sporting events, and the infinite possibilities provided by the expansion of online gambling technology.
1. MGM Resorts International
The biggest casino operator on the Las Vegas Strip is undoubtedly the MGM Resorts International company. It offers over thirty-five thousand rooms and suites in just 21 of its USA casinos, not to mention the ones in Macau. MGM generates half of its revenue from the casinos located on the Strip. Moreover, MGM plans to expand its profit through newly-established venues in Macau where some of the great casinos such as the Venetian of Sheldon Adelson has had great success, as well as to build a property in Japan that is set to open its doors to visitors by 2026.
MGM has not failed to take a more active role in the sports betting arena. Their push into that part of the industry is seen in the company’s sports betting platform betMGM. This platform has recently signed sponsorship deals with professional football teams of The Detroit Lions and The Las Vegas Raiders, thus becoming the teams’ official sports betting partner company.
According to financial reports and estimates, MGM’s USA casinos stand to generate 4% of the company’s total revenue from sports betting alone. Those numbers might even increase as more states legalize sports wagering. Due to the coronavirus crisis, the revenue numbers are set to drop 57% for the year 2020, but next year, an increase of a whopping 84% is expected.
The recent renovations, delving into the world of sports betting and professional sports should lift MGM’s domestic revenue numbers around 6%.
2. Caesars Entertainment
Under the vast umbrella of businesses that Caesars Entertainment operates, there are 53 USA-based casinos across Las Vegas and the neighboring region. Las Vegas casinos account for 45% of the company’s revenue, while the regional markets account for the remaining 55%. There are also 13 other international properties under Caesars Entertainment’s wing.
The company has made a giant push into the world of sports betting by acquiring the British giant William Hill for $3.7 billion. This coincides with the predictions related to the growth of the industry in the newly legalized markets throughout the USA.
Forecasts say that Caesar’s revenue in the betting industry will reach $900 million by 2024 and compose more than 8% of the company’s total revenue. The numbers are almost double than that of the competition, such as MGM. Still, considering that by acquiring Eldorado in 2020, Caesars Entertainment reached a 10% revenue share of the entire domestic casino gaming market, it is no wonder why the expectations are so high.
3. Wynn Resorts
Wynn Resorts is a company famous for its deluxe casino resorts, with the most famous ones being Wynn Macau and Encore in Chinese Macau and their counterparts in Las Vegas. However, the company has set its sails towards conquering the cunning seas of sports wagering. Wynn Resorts has recently launched its special sports betting platform called Wynn Sports mobile app which is perfect for wagering on the go. In cooperation with Scientific Games, Wynn Resorts looks to expand its digital betting platform to Colorado and Indiana. Also, the company has teamed up with an internet gaming software provider GAN to develop Wynns’ platform for both sports betting and internet gambling.
Although the coronavirus put a temporary stop to some of these projects, it appears that things got going again and that, in the long term, both the casinos in Macau and Las Vegas will continue to be a success, especially the ones where sports betting is allowed.