Las Vegas Strip sees its biggest bet pay off

Published 7:21 am Thursday, February 8, 2024

: MGM has built up the BetMGM brand all over the country.

For decades, Las Vegas operated in a different universe than the rest of the U.S.

The city offered sports betting, which was illegal in the vast majority of the country. And sports betting wasn’t just illegal; it was thought of as sleazy. That was magnified by the fact that it was taboo to talk about betting lines or other issues on mainstream television.

For most people, betting was something that literally was a crime. It’s not that it wasn’t happening; sports betting was always a massive industry even when it was illegal in most places. But it wasn’t talked about in polite society.

Everything changed in 2018 when the Supreme Court reversed the Professional and Amateur Sports Protection Act and enabled the states to make their own decisions on sports betting. The decision on the law, known as Paspa, brought betting on sports out of the shadows.

Now, Walt Disney’s (DIS) ESPN has a sports-betting partner and openly talks about gambling on mainstream shows like “Get Up,” and “SportsCenter.” That’s not just the case with the world leader; it’s now widely accepted that gambling isn’t some shady underground thing but rather is simply part of sports.

That has changed things for Las Vegas as well. Instead of sports betting being a sketchy offering, it’s now an accepted, above-board part of a city that has gone from having an outlaw reputation to now being the ultimate destination for sports, food and music.

MGM Resorts International (MGM) has been a major player on the Las Vegas Strip and has brought legal sports betting to many states as well.

Two of the company’s BetMGM officials — Lamarr Mitchell, executive director of trading for MGM Resorts/BetMGM, and Tristan Davis, senior trader at BetMGM — both answered questions from TheStreet via email.

MGM has built up the BetMGM brand all over the country.

Image source: Shannon Finney/Getty Images for MGM National Harbor

Las Vegas Strip hosts sports biggest event

TheStreet: What will having the Super Bowl in town do for Vegas sports betting?

Mitchell: The destination has long been the entertainment capital of the world, but with the largest sporting event in the world being played in our backyard, it will further cement Las Vegas as the sports capital of the world. We’re seeing the excitement for Big Game action build every day we get closer to the Big Game.

TheStreet: Has legalized betting in other states actually helped Las Vegas?

Mitchell: Yes, it has. Guests are more sophisticated when wagering on sports events. Prior to the legalization, many guests were novices, so they were intimidated venturing into the sports-betting mecca; we’re now seeing a shift in that position.

Everything has changed for Las Vegas

TheStreet: Does the fact that gambling is no longer taboo on sports coverage increase the audience?

Davis: The widespread legalization of sports betting post-Paspa has increased audience and engagement. It’s not only regulated but it’s more convenient for players whether they choose to bet online or in person. It keeps the audience tuned into the game longer. The ultimate outcome of the game might be decided, but the total, spread, or player props could come down to the last second.

More on Las Vegas:

TheStreet: How much betting is of the casual variety compared to people who bet regularly?

Davis: The Super Bowl, the NFC Championship, and the AFC Championship games are the most-bet events of the year at BetMGM. These games attract people looking to place a wager on a marquee event to get in on the action for perhaps the first time this NFL season. It also draws bettors who have frequented the sportsbook throughout the NFL season.

TheStreet: Have you seen any shifts in how people bet as sports betting has become mainstream?

Davis: Sports betting has gone far beyond the point spread, moneyline, and totals. Prior to the start of the NFL season, BetMGM upgraded the sportsbook to include more markets than ever, including same-game parlays, which continue to grow in popularity. The prevalence of fantasy football before the legalization of sports betting has played a big part in the increase in action on player props.

TheStreet: Is in-game betting growing in popularity?

Davis: In-game betting popularity grows with every sports season. It’s driven by more television coverage and an improvement in latency. BetMGM has responded to growing interest by offering more in-game markets such as drive outcome markets.