MGM Resorts Shares Rise on Plan for Online Casino and Sports Betting in Pennsylvania
Friday 4th December 2020
MGM Resorts International shares rose after the gambling giant said it had started an online casino in Pennsylvania.
MGM's (ticker: MGM) BetMGM division announced that its digital suite of slots and table games would be available to Pennsylvania players via mobile app or desktop browser. In addition the company, which signed a partnership with the Pittsburgh Steelers in late November, said that it planned to soon follow with a sports betting offering in the coming weeks, pending regulatory approval.
MGM was up 1.9%, to $30.48, in afternoon trading on Friday. The shares have lost more than 8% in 2020, as pandemic-related closures hit regional casinos and hot spots like the Las Vegas Strip and the Chinese gambling hub of Macau.
While the Covid-19 crisis has hurt traditional gambling, online options and sports betting have been bright spots in the industry. Yet at the same time, MGM's move into Pennsylvania highlights the intense competition in the Keystone State, which has hurt rivals.
Following Friday's news, DraftKings (DNKG) was falling 1.4% to$49.39. FanDuel owner Flutter Entertainment (FLTR.Ireland) closed up in regular trading overseas, which concluded before the announcement.
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