As MGM Resorts International takes a vital step back, BetMGM will officially take over the reins as the operator of MGM's sportsbook and racebook at its onsite casinos all throughout the United States. Essentially, BetMGM will be an 'employee' of MGM sportsbooks and will be in charge of the major tasks for the casino giant.

In a pivotal move within the gaming industry, BetMGM has officially assumed the role of operator for MGM Resorts International's sportsbook and racebook operations across all of its onsite casinos in the United States. This transition strengthens BetMGM's position as a dominant force in both sports betting and iGaming.

BetMGM, a joint venture between MGM Resorts and Entain Plc, will now act as a 'primary employee' of MGM's sportsbooks. According to Scott Scherer, BetMGM's attorney, the operator will manage high-level responsibilities, including customer service, trading, risk and fraud management, marketing, and payment processing. "As the employer, MGM will be responsible for oversight and policy direction," Scherer said to CDC Gaming. In addition to these operational duties, BetMGM will carry out house rules set by MGM’s gaming properties, further integrating its presence into MGM's retail gaming ecosystem.

A strategic step in a year of investment

This transition comes as part of BetMGM's broader strategy, with 2024 already deemed 'a year of investment' by the company. Taking over MGM's brick-and-mortar sportsbook operations marks the latest in a series of transformative moves aimed at strengthening BetMGM's market position.

Earlier this month, BetMGM revealed the hiring of Casey Hurbis as its new chief marketing officer. Hurbis, who held the same position at Rocket Mortgage, brings over 20 years of experience in the automotive sector. His collaboration with the creative agency of BetMGM, Highdive, has already laid the groundwork for impactful marketing campaigns, including several successful Super Bowl ads during his tenure at Rocket Mortgage.

In another significant development, BetMGM was able to streamline its digital rewards program last month. The revamped system allows bettors to view and manage loyalty points through a unified wallet, eliminating the need to navigate multiple state-specific accounts.

Furthermore, BetMGM became the first gaming operator to enable digital wallet transfers across state lines. This innovation allows customers to use the same account across multiple jurisdictions, offering unparalleled convenience. For example, a bettor who signs up in Las Vegas can now seamlessly access their account in any other state where BetMGM operates.

Strengthening ties between BetMGM and MGM

The relationship between BetMGM and MGM Resorts has long been synergistic, with many of MGM's retail sportsbooks already branded under the BetMGM name. This latest development, therefore, seemed inevitable, addressing the long-standing question of 'when' rather than 'if' BetMGM would take full operational control.

Speculation about MGM's potential plans to acquire full ownership of BetMGM has circulated for some time, especially as many investors have pushed for changes at Entain, the co-owner of the joint venture. However, neither MGM nor Entain has publicly confirmed intentions to alter their partnership structure.

Despite BetMGM assuming day-to-day operational control, significant decisions will still involve collaboration. If major issues arise, the final call will rest with an MGM-employed executive at each casino, ensuring alignment with MGM Resorts' policies and goals.

The implications for the future

BetMGM's enhanced role in MGM's retail sportsbook operations positions it as a leader in the overall gaming and sports betting industry. The move reflects the growing importance of integrating digital and physical gaming experiences as well as the demand for seamless services across various platforms and locations.

By prioritizing innovation, customer experience, and strategic leadership, BetMGM is setting a strong foundation for continued growth in the competitive landscape of US sports betting and iGaming. As the company builds on its successes and executes its ambitious plans, it remains one of the key players to watch in the ever-evolving gaming industry.