MGM and Caesars gain market share in US online sports betting – Mgm Resorts International (MGM)

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Bank of America just released its latest US Online Sports Betting (OSB) app download numbers for September, and the data suggests MGM Resorts International (NYSE: MGM) and Caesars Entertainment Inc (NYSE: CZR) are making great strides in gaining market share in the high growth industry.

Bank of America reported 1.8 million OSB app downloads in September, up 198% from last year. Since the start of the year, there have been around 5 million downloads of OSB apps in total. The state of Arizona launched Daily Fantastic Sports Betting (DFS) in September, the latest in a phased state-by-state rollout of online sports betting and iGaming.

Related Link: How Fox Gives Unique Exposure to American Sports Betting

The breakdown: Among iOS users, Bank of America analyst Shaun Kelley said Projects Inc. (NASDAQ: DKNG) still holds the largest market share with 37%, followed by Flutter Entmt ADR (OTC: PDYPY) subsidiary FanDuel 24%, MGM 14%, Caesars 11% and Penn National Gaming, Inc (NASDAQ: PENN) subsidiary Bar stool at 8%.

Compared to a year ago, MGM gained the largest market share of all apps, up 8%. Caesars also saw significant gains, adding 7% to its market share. The bar stool was the biggest loser in market share from a year ago, down 10%. FanDuel has also lost a 5% share from a year ago.

Booking in advance: Looking ahead, Kelley said the next big market to open will be Connecticut, which is expected to experience a “soft launch” in online sports betting and iGaming on October 12.

Bank of America has the following ratings and pricing targets for America’s top OSB leaders:

  • DraftKings: Neutral rating, target of $ 60.
  • MGM complexes: Neutral rating, target of $ 48.
  • Caesars: buy odds, target of $ 125.
  • Penn National: Purchase evaluation, goal of $ 110.

Benzinga’s point of view: Investors should continue to monitor major mergers and acquisitions in the online gaming space. In the third trimester only, Penn announced buyout of theScore for $ 2 billion, DraftKings has acquired Golden Nugget Online Games for $ 1.7 billion, MGM bought the operations of Cosmopolitan for $ 1.6 billion, DraftKings has made a $ 22 billion bid for Etain, and MGM has reportedly expressed interest in acquiring the remaining 50% stake in BetMGM under the Etain agreement.

photo by Jeff Griffith to Unsplash


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