HORSEPLOP.COM
General Category => Harness Racing => Topic started by: 1804 on August 11, 2020, 10:29:15 AM
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To Diller, MGM = Disney
In a letter to investors, Diller compared MGM—which operates Vegas casinos like the Bellagio and Mirage—to Disney for its ability to use its "iconic brand and multiple avenues to monetize the same intellectual property."
One monetization avenue that most interests IAC is MGM's inroads in online gaming, which includes sports betting platform BetMGM.
It's only live in seven states so far due to restrictions on gambling, but Diller thinks that the regulatory environment will "generally catch up with consumer demand," putting IAC in a position to profit when it does.
Zoom out: The pandemic crippled the casino business, and revenue at MGM, which operates more than 35% of rooms on the Vegas strip, fell 91% in Q2. But if IAC's hunch is correct, there's a path to recovery for gaming companies—and it's through diversifying physical assets with more online offerings.