On Wednesday, July 31, MGM Resorts gathered many of its high-level executives on the company’s 2024 second quarter earnings call to report its financials for the last three months.
MGM Resorts saw a 10% increase in consolidated net revenue compared to the second quarter of 2023, which is encouraging for the company. But the growth of its regional operations, which includes North Carolina, has stagnated.
The company operates the BetMGM Sportsbook in the North Carolina sports betting market, which launched in March. The North Carolina market could boost MGM, but it needs to gain more market share.
Regional revenue flattens out for MGM
MGM Resorts accumulated $4.3 billion in consolidated net revenues across all arms of its company in the second quarter of 2024 for year-over-year growth of 10%. This is solid second quarter revenue for MGM, even if it is a slight dip compared to first quarter 2024.
According to MGM Resorts Chief Executive Officer and President Bill Hornbuckle, there were three reasons for the quarterly growth. He said,
“MGM Resorts continued to drive positive financial results and solid growth in the second quarter, with record MGM China Adjusted Property EBITDAR (earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs) and further growth in Las Vegas, where our Marriott relationship continues to exceed expectations and our meetings and convention business continues to strengthen thanks to our recently completed remodel of Mandalay Bay.”
MGM’s regional business, which includes North Carolina, has stagnated. Net revenue from regional operations in the second quarter reached $927 million, which was virtually the same as in second quarter 2023.
The reason for MGM’s lack of growth is the same as for many other operators: The market has matured, there are fewer and fewer state launches, and the titans of sports betting, like FanDuel and DraftKings, have risen to the top. That has left small amounts of market share for other operators, like BetMGM, to fight over in North Carolina and other states.
iGaming would be a real difference maker
North Carolina sports betting launched in March, making it the newest sports betting market in the United States.
While many operators are excited to gain a foothold in a new market, FanDuel and DraftKings have already separated from the pack, with an estimated 50% and 28% of the North Carolina market share, respectively.
In distant third is Caesars at around 7%, leaving BetMGM North Carolina with somewhere around 5% or 6% of market share.
Despite that small market share percentage, MGM Resorts still invests in digital gaming in its regional market. Hornbuckle outlined some of the ways MGM continues to invest in regional offerings in North Carolina and across the rest of the country.
“We made significant progress with our international digital strategy by adding both an in-house sports product and live dealer capabilities to our online gaming offerings,” he said. “We’re excited by the progress we’re making as a company against our strategic proprieties and anticipate carrying our current momentum forward into the back half of the year.”
While MGM is struggling to gain market share in North Carolina, that could change quickly if iGaming is legalized. A North Carolina online casino market would provide MGM with a new venue for its iGaming platform, which has performed extremely well in other states.
Unfortunately for MGM, it could take a bit before North Carolina legalizes iGaming. The state legislator with the most interest in online casinos, Rep. Jason Saine, is resigning. That will delay North Carolina online casino hopes for the foreseeable future.
Image Credit: Chuck Burton / AP Images
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