MGM Resorts International (NYSE: MGM) has decided to increase the focus on online betting. The company had disclosed that due to COVID-19 restrictions all of its resort casinos were closed. The only source from where the company was making money was sports betting and gaming online casino and poker.
When the casinos all around the country were closed due to the restrictions of the COVID-19, gaming giant MGM has also shifted its focus towards online gambling. Nevada’s report has disclosed that in March when the virus hit the US and cases were on peak online gaming focus increases 90%year-over-year.
MGM has recently entered the era of digital technologies and they face tough competition from sports betting apps already working in the market. This online sector has seen a positive reaction of customers and saw a growth of $53 billion last year. The reason for this massive growth is that the coronavirus pandemic has shifted the focus of people to online and indoor activities. They preferred to engage with outside activities by staying at home.
Draftkings and FanDuel have disclosed that they have recorded the increase in new customers signs up in the first week of the 2020 NFL season since fall 2015. This is the biggest changed the industry has ever experienced. George Kliavkoff, MGM Resorts’ president of entertainment and sports said that the DraftKings and FanDuel are the major competitors of the MGM Resorts International as they have a large customer base.
George Kliavkoff revealed that MGM is planning to increase the customer experience to gain a competitive edge by providing special benefits like giving access to Lady Gaga and other residents shows. MGM has earlier partnered with Yahoo Sports that makes Yahoo Sports the official Digital Media Sports Partner of MGM Resorts.
MGM Resorts International (NYSE: MGM) shares went up 4.29% at $22.10 during the trading session of Friday. In the past 52-weeks of trading, this company’s stock has fluctuated between the low of $5.90 and a high of $34.63. It has moved up 274.57% from its 52-weeks low and moved down -36.19% from its 52-weeks high. Looking at its liquidity, it has a current ratio of 2.50. This company’s market capitalization has remained high, hitting $10.45 billion at the time of writing.
MGM Resorts International is planning to open publicly ticketed live entertainment venues in the next couple of months with the implementation of all social distancing rules. Kliavkoff is predicting that the Resort will see the increase in MGM’s sportsbooks as major league teams return. The MGM Resorts have shifted the focus to online betting because whether people will remain indoor or the country reopens in all case online gaming sector will always prosper.