MGM Resorts Bellagio Error Likely the Largest Sportsbook Loss
MGM Resorts International MGM is likely to have witnessed largest sportsbook loss in Las Vegas history on bets made after an event is underway according to reports. Approximately quarter-million dollars have been lost as bets were made following the event commencement.
Per ESPN, inappropriate start times were posted on some Korean and Chinese baseball games owing to manual entry error. Approximately, 50% of the bets were placed using self-serve kiosks at the Bellagio resort between 1.30 am and 3 am West Coast time. However, the games in question commenced at 1 am and 2 am.
Reportedly, The Nevada Gaming Control Board is investigating the matter as the dispute is in excess of $500. Westgate sportsbook director John Murray said “I think every sportsbook probably since the beginning of time has dealt with this at some point.”
Sports Betting Holds Key
Instead of being a capital intensive, brick & mortar real estate business, MGM Resorts intends to be a developer, manager and operator of major gaming, hospitality and entertainment properties. It aims to focus on sports and live entertainment. Of late, the company has been committed toward asset light strategy.
MGM Resorts had announced that it signed a definitive agreement to sell its Las Vegas Properties. To this end, MGM Growth Properties LLC ("MGP") and Blackstone Real Estate Income Trust ("BREIT") formed a joint venture to acquire the MGM Grand Las Vegas for $2.5 billion.
Moreover, in January 2020, Roar Digital, LLC — a joint venture between MGM Resorts and GVC Holdings — reached an agreement with National Lacrosse League (NLL). Per the deal, Roar Digital’s sports betting brand, BetMGM, has become the official and exclusive gaming partner of the NLL.
Shares of MGM Resorts have fallen 49.3% year to date, compared with the industry’s decline of 26.7%. MGM Resorts, which shares space with Wynn Resorts, Limited WYNN, Las Vegas Sands Corp. LVS and Boyd Gaming Corporation BYD, carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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