BetMGM Q1 update a positive indication for MGM Resorts, says Jefferies

After the BetMGM joint venture announced Q1 net revenues of $657M, up 34% year-over-year, with online sports betting revenues up 68% year-over-year to $194M, Jefferies analyst David Katz called the update a positive indication for MGM and the group generally as it projects resiliency of OSB and iGaming in an uncertain macro environment. The strong results on Handle growth “should help calm investor fears about a slowdown,” while the increase in net gaming revenue margin despite a slightly falling hold rate implies the industry is becoming more efficient and disciplined, adds the analyst, who keeps a Buy rating and $53 price target on MGM Resorts (MGM) shares.