BetMGM To Boost Yahoo Sports Cross-Sell With Shared Wallet

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BetMGM is aiming to boost customer acquisition through its Yahoo Sports partnership by tying the products together more seamlessly.

That means introducing a single wallet and single account across Yahoo Fantasy and BetMGM to ease cross-sell.

At present, customers for the so-called Yahoo Sportsbook in New Jersey are redirected to BetMGM and asked to create a new account.

Why a BetMGM shared wallet is important

That lack of a single wallet was a key reason some analysts suggested Yahoo players wouldn’t convert as readily as FanDuel’s and DraftKings’ players.

A full shared wallet is still a ways off and pending regulatory approval, but that’s the ultimate goal, GVC said. GVC is the co-parent of BetMGM operator Roar Digital.

“We’re looking for the deepest integration possible that fits our respective licensing statuses,” said Adam Greenblatt, CEO of Roar. 

Beyond just Yahoo Fantasy players, BetMGM is eyeing closer integration with Yahoo Sports and its 64 million monthly unique viewers.

“The agreement with Yahoo Sports represents a significant step forward,” said GVC in its FY19 earnings call.

How many Las Vegas visitors will it reach?

The improved Yahoo integration is one of several customer acquisition strategies laid out today by GVC. The firm is also planning to integrate BetMGM with MGM’s M life rewards system in April.

It means visitors to MGM’s nine Las Vegas properties will be incentivized to download the BetMGM app and place a wager.

That could reach roughly 7 million visitors annually, with MGM properties accounting for 45% of rooms of the Las Vegas strip.

“When those customers return to their home state, we can continue to market to them and they can become loyal customers,” said Shay Segev, GVC’s COO.

Segev said GVC’s extensive experience would help the process with omnichannel operations in the UK in its Coral and Ladbrokes shops. 

Roar Digital growth is accelerating

In Q4, Roar said it started to see the benefit of an established management team, efficient marketing and its proprietary tech. 

Total gross gaming revenue was up 55% in Q4, while digital gross gaming revenue (68% of the mix) was up 137%. Similar growth was seen in New Jersey.

GVC results presentation

More startup losses expected for GVC, MGM

GVC was bullish on Roar’s prospects for 2020, saying it would be live in at least 11 states, equivalent to circa 20% of the US population.

That could include launches in Colorado, New Mexico, Pennsylvania, Michigan and Tennessee.

In fact, GVC said the launch in Michigan was “imminent,” with self-service betting terminals already being installed in the MGM Grand in Detroit in preparation for March Madness betting.

GVC took a $16 million loss from its share of the JV’s 2019 result. That equates to a total loss of $32 million for the JV as a whole.

The operator also warned of a greater loss in 2020, equivalent to $26 million-$38 million per parent.