MGM Resorts has announced intentions to extend its online gambling platforms worldwide
Jonathan Halkyard, MGM’s Chief Financial Officer, told the Bank of America Securities 2021 Gaming and Lodging Conference that the company will continue to expand its online gaming business BetMGM, whilst actively moving towards an asset-light model that would see it focus primarily on gaming operations rather than ownership.
Due to the lack of major new land-based resort prospects and MGM’s unwillingness to invest in such resources outside of Macau and Japan, this expansion is likely to continue elsewhere. As well as holding majority ownership in MGM China, which operates MGM Macau and MGM Cotai, MGM Resorts also heads up a group aiming to build an IR in Osaka in Japan.
“When I think about what this company needs to be, definitely the best-known brand, most trusted brand in gaming,” Halkyard said.
“Casual, high-end and hopefully in as many distribution points with the highest availability in this country.
“Then to the extent that it is regulated, online offerings internationally.
“Realistically the opportunity for integrated resorts is not going to be in a wide number of jurisdictions and the capital cost can be pretty extreme but in our spots – Macau and Japan – we would expect to be a player there. So the best brands, [most] trusted brands available anywhere and premier in gaming.”
Halkyard focused his remarks on the long-term potential of the company’s joint venture with Entain PLC, BetMGM.
Online consumers across the world would become M life Rewards members, and would get points and rewards for playing at BetMGM as a result of an omni-channel approach being championed. It will continue to streamline its business strategy for the foreseeable future, Halkyard added.
“MGM has in the past flirted with non-gaming instances of its brand and we have over the past six months, Bill (Hornbuckle, CEO) and I and some of the management team, been unwinding and shutting some of those investments,” he said.
“They’re all small but they take financial resources and management resources, so we’re getting out of those.
“We’ve been through the CityCenter [sale], the MGP (MGM Growth Properties LLC) deal, so less financial engineering and more simplified and clear about what we are, which is an OpCo.”
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