MGM Resorts International has reported a strong performance for its digital wallet feature, which is available for users in the heartland gaming state of Nevada.
Launched in August last year, the digital wallet is accessible to any Nevada-based customer of MGM’s online sports betting platform BetMGM. The feature can be used to place bets in Nevada and subsequently carried in a nationwide wallet.
The wallet has enabled the company to significantly improve its omnichannel payments and betting proposition, MGM Resorts President, Bill Hornbuckle, told investors and analysts during the Q4 investment call this week.
Online sports betting has exploded in the US since federal legislation preventing states from establishing wagering markets, PASPA, was repealed by the Supreme Court in 2018.
For companies like MGM, which is one of the largest companies in the traditional land-based gaming sector in the US – particularly in Las Vegas’ home state of Nevada – bridging the gap between its retail and online arms is a valuable achievement.
“MGM’s omnichannel advantage is now a much more meaningful opportunity,” Hornbuckle remarked on the earnings call this week – though the firms’ revenue did actually decline slightly by 1% year-over-year in Q4 to $4.3bn.
BetMGM – a joint-venture between MGM Resorts and UK-based global gaming group Entain – is the third largest betting firm in the US by market share, after FanDuel and DraftKings (in number one and two spots, respectively).
The US and its neighbour, Canada, where BetMGM also operates in Ontario, are highly competitive markets. Keeping an eye on payments trends and ensuring the latest technologies and consumer preferences are integrated into a betting operation can prove crucial to setting a company out from its competitors.
In a conversation about Open Banking in Canadian gaming late last year, Liron Warhaftig, VP of Payments, Risk and Fraud Prevention at BetMGM, told Payment Expert that the company is ‘in the loop’ with finance and fintech developments.
“Keeping tabs on fintech and financial services isn’t just something we do when it’s convenient – it’s part of the job,” he said.
“If you’re not tracking where the puck is going, you’ll be left behind. We’ve got our ears to the ground and are ready to adapt when the timing and regulatory landscape align.”
