MGM plots New Jersey digital launch
Nevada operator planning to launch online casino and poker in the Garden State “in the near future”
MGM Resorts has confirmed plans to launch its own branded online gaming site in the New Jersey market, EGR North America can reveal.
The new site would utilize the Borgata’s DGE licence but feature MGM’s own name and branding.
“There have been a lot of rumors but I can tell you that we are indeed interested in the online opportunities out East and are hopeful to launch our MGM Resorts brand out there in the near future,” MGM Resorts’ senior vice president of business development, Tom Mikulich told EGR NA.
Mikulich said there was no specific timeline but any site would include both poker and casino, with the poker site sharing the same partypoker-powered platform as the Borgata.
The MGM recently purchased Boyd Gaming’s 50% stake in the Borgata for £900m, giving the operator full control over its operations.
The market entrance would make MGM the fifteenth different brand in a relatively small market, prompting some concern among competitors.
“That’s a lot for sure”,” said a rival exec, who requested anonymity. “MGM is of course a strong brand and the more market share you have the more you’ll be impacted.
“As with other brands, part of their revenues will come from existing brands and part of it from new players. It all depends on how much they invest in marketing and whether this comes on top of what is spent on Borgata or is a partial reallocation.”
Eilers and Krejick analyst Chris Grove said MGM’s success would likely hinge on the quality of its product.
“The MGM brand is a strong, national brand and the MLife database provides a critical leg up,” Grove said. “But, as we’ve seen in New Jersey, brand and database only take you so far. MGM’s longer-term impact will be dictated by things like content variety and quality, payment processing efficiency, and bonusing. Those are the areas that seem to be dictating consumer loyalty and share of wallet in New Jersey.”