Just in the nick of time for Super Bowl LVI, BetMGM is launching sports wagering in Puerto Rico — the operator’s initial foray outside the continental US.
BetMGM is now available at Casino del Mar at La Concha Resort in San Juan. The sports book operator and the hotel reached a related agreement last September.
BetMGM now is accepting wagers at the San Juan-based beach resort through 12 kiosks and five betting windows. A full-scale BetMGM retail sportsbook is set to open at La Concha Resort later this year,” according to a statement issued by the gaming company.
The Caribbean island is an unincorporated territory of the US. Puerto Rico passed sports betting, daily fantasy sports (DFS), and esports legislation in 2019. That paved the way for the Puerto Rico Gaming Commission (PRGC) to set regulations and standards and issue permits to operators.
BetMGM adds it expects to launch its mobile app there later in 2022.
Puerto Rico Could Be Positive for BetMGM
BetMGM is a 50/50 joint venture of MGM Resorts International (NYSE:MGM) and Entain Plc (OTC:GMVHY).
In the US, it’s the largest iGaming company and typically among the top three sportsbook operators in the states in which it provides that service. Regarding Puerto Rico, the market is potentially compelling one for operators like BetMGM. It’s home to 3.28 million residents, making it larger than several states where sports betting is legal, including Iowa, Arkansas, New Hampshire, and Rhode Island, among others.
Additionally, Puerto Rico is a major tourist destination and locals are big fans of traditional American sports, including Major League Baseball (MLB), the NBA and the NFL. Sports betting taxes are also attractive on the island at just six percent for wagers placed in land-based casinos and 12 percent on mobile bets.
BetMGM’s debut in Puerto Rico comes as experts are forecasting $7.6 billion in wagers being placed on Super Bowl LVI, which takes place Sunday. The NFL’s biggest tilt is usually the most wagered on sporting event in the US on an annual basis.
Market Expansion Still Important
BetMGM’s move into Puerto Rico arrives soon after the operator launched in New York – a market that’s fast on its way to becoming US sports wagering royalty — and as it plans to debut in Ontario, Canada later this year.
Forging into new markets remains vital for sportsbook operators in their efforts to achieve scale and boost top-line results. It’s also something Wall Street actively monitors in evaluating gaming companies with sports betting exposure. So is profitability and BetMGM checks that box.
Last month, the company forecast a 50 percent surge in revenue for 2022 while noting it will be profitable on the basis of earnings before interest, taxes, depreciation and amortization (EBITDA) in 2023.
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