MGM Resorts: BetMGM Winning Revenue and Profits in the Sports Betting and IGaming Market

There was a lot to like in BetMGM’s (50% owned by no-moat MGM) first-half 2023 update, which showcased growing revenue and profitability. We think BetMGM/MGM’s omnichannel presence positions it to be one of the long-term winners in the North American sports betting and iGaming markets, which we see reaching $40 billion in sales by the end of the decade versus just over $13 billion in 2022. We maintain MGM’s $51 fair value estimate, leaving shares near fair value.