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State of the Union: MGM, Bally’s, Caesars and more

Insight | Analysis

This week’s State of the Union, in partnership with Segev LLP, includes third-quarter earnings from almost all the major players in the land-based sector, as well as more September sports betting revenue figures.

MGM Resorts revenue doubles in Q3 as it announces Mirage sale plans

MGM Resorts has recorded revenue figures of $2.71bn for the third quarter of 2021, representing a 145.5% increase on the same period last year.

The company announced during its Q3 earnings call that it is planning to sell the operations of the Mirage Resort. The business had already sold the property itself as part of an asset-light strategy.

Bally’s Q3 revenue up 170% in final quarter before Gamesys acquisition

Land-based operator Bally’s saw revenue grow 170.0% to $314.8m (£232.2m/€272.5m) in Q3 of 2021, the last quarter before its acquisition of UK-based igaming operator Gamesys closed.

Gaming made up the vast majority of Bally’s revenue, at $227.6m, a 135.6% year-on-year increase. Hotel revenue was up 383.35 to $32.9m, while food and beverage revenue grew 327.5% to $29.5m. Racing, meanwhile, brought in 42.0m, up 20.0%.

Las Vegas recovery helps Caesars cut loss in Q3 as revenue rockets 86.1%

Caesars Entertainment Inc. was able to reduce its net loss to $233m in the third quarter of its 2021 financial year after experiencing an 86.1% year-on-year jump in revenue.

Total revenue for the three months through to September 30 – which include the US operations of William Hill but not the rest of the operator, even though it still owns the entire business – amounted to $2.69bn, up from $1.44bn in the corresponding period last year.

Penn reports $1.51bn in Q3 revenue as it prepares for theScore integration

Penn National Gaming (PNG) has reported revenue of $1.51bn (£1.1bn/€1.3bn) for its third quarter 2021 results ended September 30, though profit declined due to non-operating expenses.

This revenue total was up 33.8% compared to the third quarter of 2020.

Virginia sports betting handle jumps 61% in September

The Virginia Lottery released its sports betting revenue report for September 2021, the state’s eighth month of reporting since wagering went live on January 21, revealing that September handle jumped to $283.9m.

During the month of September, Virginia sports bettors wagered a total of $283.9m, up 61% from August 2021. The bump, which is mirrored in other legal markets such as New Jersey, Nevada and Colorado, can likely be attributed to the ongoing 2021-22 NFL season, which began September 10.

Richmond voters reject One Casino + Resort project

Voters in the city of Richmond, Virginia have rejected a ballot measure to build a new casino in the city.

The city held a referendum, as part of the November 2 election, to approve the building of One Casino + Resort in the south side of the city.

Fubo Sportsbook makes US debut with Iowa launch

The Fubo Gaming subsidiary of streaming provider fuboTV has officially launched its new Fubo Sportsbook in the US, with the platform now live in Iowa.

Consumers in Iowa can place wagers on thousands of professional and collegiate sporting events using the Fubo Sportsbook mobile app, which has been integrated with FuboTV’s live TV streaming platform.

DraftKings pens odds partnership with iHeartMedia

DraftKings has entered into a multi-year strategic partnership with US audio network iHeartMedia.

Under the deal, DraftKings will serve as the official odds supplier for iHeartMedia broadcast, digital, podcast and social platforms for its sports radio and podcast networks.

Red Rock profit grows in Q3 thanks to efficient revenue margins

Red Rock has recorded revenue figures of $414.8m for the third quarter of 2021, representing a 17.5% increase on the same period last year.

Of this total, $289.0m was derived from casino operations, a figure which has increased 20.5% when compared to 2020. Food and drink contributed $64.8m, room revenue was $39.5m, while other sources raised $21.1m.

WynnBet gains access to West Virginia market

WynnBet has gained market access in West Virginia for online sportsbook and casino operations via a partnership with Delaware North.

Wynn Resorts’ sports betting and casino app will enter the state through its relationship with the hospitality and entertainment group, which owns and operates two casinos in West Virginia.

Esports Technologies files patent for esports betting exchange

Esports wagering technology provider Esports Technologies has announced the filing of an electronic sports betting exchange system patent.

The patent is in regards to a private betting model, which will allow operators and bettors to experience higher liquidity and improved pricing that is unaffected by bet sizes.

Illinois legislature approves amendment to allow online registration

A bill to amend the Illinois Horse Racing Act 1975 has proposed the removal of the requirement to register for a sports betting account in person from next year.

House Bill 3136, which has passed both houses in the state Senate with 100 votes to 13, has proposed that the requirement will end either when an operator is granted a specific master license for online sports betting, which will be permitted under the bill, or on 5 March 2022 – whichever event occurs first.

Gaming Realms nets full Michigan license amid content licensing revenue surge

Gaming Realms has obtained a full license to operate in Michigan as it announced a 35% year-on-year rise in content licensing revenue.

The developer and licensor of mobile-focused gaming content said in a trading update that it has now been granted a full iGaming Supplier License in Michigan – the US’s 10th most populous state – after operating with a provisional permit since January 2021.

Caesars opens in-person sports betting in Louisiana

Two Caesars properties in Louisiana—Harrah’s New Orleans and Horseshoe Bossier City Hotel & Casino—accepted their first in-person sports bets yesterday (31 October), making them the first commercial casinos in the state to do so.

The launch follows Betfred launching sports betting last month at the Paragon Casino Resort, which was permitted to launch earlier as it is owned by the Tunica-Biloxi Tribe.

Bally’s bids for land-based casino resort license in Chicago

Bally’s Corporation has submitted a proposal to develop and operate a new $1.6bn land-based casino resort in Chicago, Illinois.

The operator said that the Bally’s Chicago venue, which would include a casino, hotel and entertainment facilities, would serve as its new flagship property.

VICI shareholders approve share issue for MGM Growth Properties acquisition

Vici Properties’ shareholders have approved the proposal to issue VICI common stock in preparation for the company’s acquisition of MGM Growth Properties (MGP).

99.9% of shareholders voted in favour of issuing the shares to MGP Class A stockholders as consideration in the merger, during a meeting called specially for the vote.

Kambi inks Arizona retail betting deal with Desert Diamond Casinos

Kambi Group has entered into a multi-channel agreement with the Tohono O’odham Nation’s Desert Diamond Casinos, which will benefit from Kambi’s online and on-property sportsbook products.

As part of the deal, Kambi will operate retail sportsbooks at Desert Diamond Casinos’ West Valley, Sahuarita, and Tuscon, Arizona locations. The Tohono O’oodham Nation was one of 10 Arizona Indian tribes to be granted an Arizona sports betting license in August 2021 ahead of the market opening in September.

Colorado sports betting handle reaches record $408m in September

Consumers in Colorado spent a record $408.3m on sports betting during September, while revenue came in just short of the state’s all-time monthly high.

Gross gaming revenue for the month was $22.7m, the second-highest monthly amount on record behind $23.1m in January this year and 423.8% up from $4.2m in September last year.

Rhode Island sports betting handle reaches record $41.2m in September

Player spending on sports betting in Rhode Island reached a record $41.2m in September, while the state’s revenue also increased 66.7% year-on-year.

Revenue in September amounted to $4.0m, up from $2.4m in the same month last year and also 263.6% higher than $1.1m posted in August of this year.

Florida’s Seminole Tribe pens pari-mutuel deals to launch Hard Rock app

The Seminole Tribe of Florida has entered into marketing agreements with five pari-mutuels ahead of the anticipated launch of legal online sports betting in the US state.

The Palm Beach Kennel Club, Hialeah Park Casino, Ocala Gainesville Poker and Ocala Breeder’s Sales Company, Tampa Bay Downs and TGT Poker & Racebook have all partnered with the Seminole Tribe to support the planned roll-out of the Hard Rock Sportsbook app.

Red Rock profit grows in Q3 thanks to efficient revenue margins

Red Rock has recorded revenue figures of $414.8m for the third quarter of 2021, representing a 17.5% increase on the same period last year.

Of this total, $289.0m was derived from casino operations, a figure which has increased 20.5% when compared to 2020. Food and drink contributed $64.8m, room revenue was $39.5m, while other sources raised $21.1m.