Although the summer months were a bit quieter for the US sports calendar, with most leagues still in their off-season periods, it did not mean that there was a slowdown in betting industry activity.
Many states worked in May and June to pass sports betting legislation, laying the foundation for future launches. MGM Resorts sought to grow its business online as well as through land-based casino, and secured two large pieces of M&A activity in the early summer.
Sports betting is legalized in Kansas and Maine
When Governors Janet Mills and Laura Kelly signed bills into their respective states, Maine and Kansas were the 35th and 34th US states that legalized sports betting.
Maine’s bill stated that tribal members have exclusive rights to offer online betting, while casinos are allowed to offer in-person gambling. Tribes have the option of operating their own online/mobile betting site or signing an agreement with an existing provider.
With a fixed price of $200,000.00 for a 4-year contract, the bill provides for a 10% tax on revenues.
Kansas also implemented a 10% tax rate. The bill passed in Kansas’ state Senate 21-13, May 12.
Governor Kelly stated that legalizing sports betting would bring in more revenue for the state, and help grow our economy. Kelly. Kelly.
These provisions also include a 2% grant fund for problem gambling or addictions, due July 1, each year. This would support tools like a text-chat and phone helpline and RET provisions.
MGM moves into M&A
MGM Resorts International had a busy summer. They made two moves to increase their business in the US.
First, MGM offered $607 million to the Swedish operator LeoVegas in order to buy its online casino, and sports betting company. This will allow the firm to expand into Europe.
MGM offered a 44.1% discount on the closing share price. MGM stated that they were pursuing strategic opportunities to increase growth and product offerings beyond the US. MGM also praised the expertise of its online gaming management team, superior technology capabilities and their commitment to profitable growth.
Chief Executive Officer & President Bill Hornbuckle stated: “Our vision to be the best gaming entertainment company in the world, and this strategic partnership with LeoVegas allows us to expand our reach around the globe.”
MGM also completed the $1.625bn purchase of The Cosmopolitan of Las Vegas, as it increased its presence along Las Vegas Strip.
The firm signed a lease for a period of 30 years with a $200m annual rent payment. This building houses its $1.1bn annual net revenue.
Hornbuckle said: “The Cosmopolitan Las Vegas has established itself as one the Strip’s top resorts, with an iconic brand and well-curated experiences. It also enjoys a loyal client base.” They are a great addition to our world-class operation portfolio.