MGM Resort executives are thrilled with BetMGM and how it is performing, with both MGM and Entain starting to see returns on investment.
They just wish the value of the online casino and sports betting joint venture was better reflected in MGM’s share price, management said Thursday at the J.P. Morgan Gaming, Lodging, Restaurant and Leisure Management Access Forum 2026.
MGM CFO Jonathan Halkyard said the company does its best to make sure BetMGM‘s value is reflected in disclosures and reports, but more might have to be done to get that value reflected for shareholders.
“I do think there could come a point where if they’re not being rewarded for it through our share price, I mean, we’d be compelled to look for other ways to monetize or make clear the value of that business because, again, we think that it’s a venture that’s worth billions of dollars right now, both for us and for Entain.
‘Phenomenal’ returns from BetMGM
Halkyard said he cannot think of a better investment MGM could have made than BetMGM, especially when looking at what others have spent in the space for similar products. Halkyard thinks its 50% stake of BetMGM is worth around $13 to $15 per share. MGM shares opened at $36.84 Friday.
“I mean, the return has been phenomenal,” Halkyard said. “Our company has invested about $625 million since inception in this venture and Entain the same amount. And last year, we received dividends of $130 million. We expect more dividends this year.
“And we built a business that has, depending upon the state, high single digit up to 15% or so market share in [online sports betting] and then over 20% in iGaming. I think everybody knows those numbers and [they are] growing very nicely. So, I mean, we are now recapturing our investment and built a business that is worth billions of dollars in our view. So I can’t think of a better investment.”
The BetMGM story only improves if more online casino states start to open up, CEO Bill Hornbuckle added.
Not the right time to spinoff?
Halkyard’s comments about getting the value of BetMGM reflected one way or another sounds a lot like what Caesars CEO Tom Reeg has been saying about Caesars Digital.
Caesars Digital is focused on hitting $500 million in EBITDA and continuing to prove the business can scale since the market is not in the right spot for spinning it off into a separate public entity, Reeg said on Caesars’ year-end earnings call.
“I would say given what we’ve seen in valuations in the space over the past six to nine months, this doesn’t seem like a market that screams you should come and offer some equity of any kind,” Reeg said. “So unlikely you see something in the near term.”
