Casino operator MGM’s US sports betting venture with gambling company Entain, BetMGM is set to grow its revenues 5x to $1bn by next year on the back of the strong gambling market in the US amid the pandemic. BetMGM is set to expand from 12 states currently to 20 states by the end of 2021, covering ~40% of the US adult population. The company reported solid numbers for Q1 with revenues at $163mn, over 90% of 2020’s total revenue of $178mn. The company’s parents, MGM and Entain, are set to double their initial investment to $450mn this year to fund the rapid growth. The company said that the US gambling market size is expected to scale to $27.6bn with a further $4.4bn potential market in Canada, where gambling laws are also under review.
MGM’s 6% 2023s
are currently trading at 107.2 yielding 2.1% on the secondary market.
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