BetMGM and its gift card partner TAPPP are unveiling a massive expansion of that progam’s gift card distribution network.
On Tuesday, the companies said the number of retail stores carrying BetMGM gift cards will “roughly double” in the current quarter to more than 12,000 from about 6,000 today. TAPPP is a New York-based payments provider. The companies originally partnered on gift cards right before the start of the 2021 NFL season.
BetMGM’s partnership with TAPPP launched in September 2021, attracting a vast group of new customers, and providing existing customers with a fast, flexible option to fund their BetMGM accounts in states in which sports betting is legal,” according to a statement issued by the firms.
News of the expanded program arrives just days after BetMGM forecast $1.3 billion in 2022 revenue. The gaming outfit is a 50/50 joint venture between MGM Resorts International (NYSE:MGM) and Entain Plc (OTC:GMVHY).
Big Expansion for BetMGM Gift Cards
BetMGM announced its entry into the gift card arena last September. The cards were initially available in eight states at retailers such as Dollar General, Kum & Go, Sheetz, and Speedway.
Following recent debuts in New York and Pennsylvania and pending launches in Mississippi and Wyoming, the gift cards will be available in 12 states. Currently, BetMGM is live across 23 US markets and in Ontario, Canada. The sportsbook operator and TAPPP are targeting significant additions to where consumers can purchase the pre-paid cards.
“This quarter’s expansion will push the distribution network further into the grocery segment, a vastly underutilized retail space in sports betting prepaid cards, and within big box/home improvement retailers,” according to the statement.
Translation: Shoppers buying a gallon of milk or a hammer at a home improvement retailer will also be able to indulge in BetMGM gift cards. The gaming company and TAPPP didn’t mention specific grocery or hardware retailers at which the cards will be sold.
Data Confirm Enthusiasm for BetMGM Gift Cards
Regardless of industry, it’s beneficial to the issuer when gift cards are sold. But it’s even better when consumers redeem the cards, because that’s when companies can count the card value as revenue. Users also often spend more than what’s on the card.
BetMGM and TAPPP didn’t comment on spending trends, but they note redemption rates are stellar.
“Since its inception, the BetMGM gift card business has experienced an industry-leading redemption rate of 99%, with nearly 75% of customers redeeming their purchases within just 2 hours,” note the companies.
BetMGM isn’t the first gaming operator to get into gift cards. In late 2020, DraftKings and InComm Payments formed a gift card deal.
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