MGM Resorts looking to expand online operations globally
CFO Jonathan Halkyard uses industry conference to detail BetMGM ambitions
MGM Resorts CFO Jonathan Halkyard didn’t mince words when speaking about the gaming giant’s future trajectory, and specifically its global ambitions for BetMGM, at the Bank of America Securities 2021 Gaming and Lodging Conference on September 9.
“When I think about what this company needs to be, definitely the best-known brand, most trusted brand in gaming,” Halkyard said. “Then, to the extent that it is regulated, online offerings internationally.”
That was a telling statement vis-a-vis MGM’s big-picture vision for BetMGM. The joint venture between MGM Resorts and Entain has emerged as one of the most prominent online gaming operators in the US, both in terms of scope and market share – it’s live in 13 US jurisdictions and firmly entrenched as a tier-one operator alongside the likes of FanDuel and DraftKings.
Halkyard went on to detail how MGM is beginning to shift its focus toward an asset-light model that de-emphasizes land-based properties in favor of an expanded and more integrated omni-channel experience.
An exception is Asia, where MGM Resorts owns a controlling stake in MGM China and is part of a group looking to develop a land-based resort in Osaka, Japan.
“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,” Halkyard said. “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.”
The next step in the evolution of BetMGM, Halkyard outlined, is to fuse its online player base with MGM’s M Life Rewards program, which allows members to accrue points toward hospitality, lifestyle, and gaming perks. An omni-channel customer loyalty program would permit online players to do the same through their igaming and sports betting play on the BetMGM app.
M Life Rewards, which currently boasts more than 34 million customers, has the potential to become a mega loyalty program and incentive structure once the ever-growing BetMGM database is folded into it.