MGM Resorts, off a discouraging Q2 earning report in which the company lost nearly $1 billion has signaled that it is not ready to slow its expansion or cease getting their name out in the rapidly growing US legal betting market. BetMGM, a joint venture between MGM Resorts, ROAR Digital, and GVC Holdings, has started off August strong with an announcement Monday that they are set to become the latest official betting operator of the PGA TOUR.
BetMGM is just the second operator to partner with the PGA Tour after one of the largest DFS operators in the world signed on with Golf’s premier league just last week. BetMGM expands its already impressive reach that includes an official sports betting partnership with the Denver Broncos of the NFL and licenses for sports betting in seven states including Colorado, Indiana, Michigan, Mississippi, New Jersey, Nevada as well as West Virginia. If plans come to fruition, BetMGM will be live in 11 states by the end of 2020.
A Logical Next Step for BetMGM
The partnership could be viewed as a logical next step for BetMGM which has a strong connection to golf. The gaming operator sponsors PGA Tour golfers Max Homa, Jimmy Walker, Kevin Na, Pat Perez, Ryan Moore, Joel Dahmen, and Boo Weekley and MGM owns the ultra-exclusive Shadow Creek Golf Course in Las Vegas.
The PGA has been identified as one of the most popular offerings on BetMGM’s top-notch wagering platform which showed its connection to golf with its sponsorship of a high-profile skins game last October in Japan featuring Jason Day, Tiger Woods, Rory McIlroy, and Hideki Matsuyama.
“BetMGM is part of a premium brand that is deeply connected to golf through sponsorship of various PGA Tour players and tournaments,” said Norb Gambuzza, PGA Tour Senior Vice President of Media and Gaming. “Through the power of the BetMGM brand and resources, this new relationship will help accelerate our sports betting strategy, and enable the Tour to reach new fans and further engage current fans who enjoy betting on golf.”
Under the Agreement…
BetMGM gains the rights in the US to use PGA TOUR trademarks, advertise within TOUR media and TOUR partner platforms, plus the betting provider will have access to content and video rights to all PGA action. With that, BetMGM Sportsbook will have a chance to create pre-game and post-game betting programming, in addition to distribution of highlights to users who have placed bets.
The partnership deal is fairly standard when put up against other similar deals between betting providers and pro sports leagues. It is said to be a multi-year deal. Terms were not disclosed.
A Win for the Tour and BetMGM
Both sides stand to benefit from the partnership deal announced Monday. BetMGM is in the midst of a huge expansion plan that announced a $450 million cash infusion to the platform last month. That cash infusion is set to help BetMGM become one of the elite online betting brands – something that was attractive to the PGA Tour.
“BetMGM’s advanced betting technology, combined with the PGA TOUR’s world-class competitions and iconic players, will not only advance the TOUR’s position at the forefront of professional sports, but the entire betting industry as well,” says BetMGM’s chief marketing officer Matt Prevost.
BetMGM gains a little more relevance in a competitive US sports betting market just when the world of competition is finally returning to normal. The gambling provider hopes to get its name out everywhere a sporting event is taking place and now they have that with weekly PGA action.
An Unlikely Relationship?
Despite much hesitation within the golf world about the merits of legal sports betting, it appears as though the platform is here to stay and that it is officially engrained in pro golf. The PGA has signaled that it is all-in with their recent official sports betting partnership deals and BetMGM is all-in on the benefits of the PGA to their brand.
It was an inevitable partnership, even though some of golf’s biggest stars such as Rory McIlroy have shown reluctance to total acceptance of betting on golf. For better, or worse, golf and betting will try to make the most of an unlikely relationship.