MGM Resorts International’s CEO Bill Hornbuckle is bullish on the future of online sports betting, in spite of the crazy quilt of regulations from state to state that complicate things.
During an interview with ESPN at the Betting on Sports America conference at Mandalay Bay’s BetMGM Sportsbook, Hornbuckle said, “I think iGaming, led by sports, is a $20 billion industry domestically here in the U.S. Overall gaming is $55-60 billion in the U.S., give or take. You can see sports gambling will take a massive place both in the fundamentals of the business and ultimately the evolution of it.”
Before that can happen issues that need to be addressed include problem gambling, attracting customers who normally wager remotely to visit brick and mortar casinos.
Noting that the Raiders stadium is a block from the Mandalay Bay, Hornbuckle added, “The opportunity eight times a year to come to Las Vegas and enjoy an amazing experience around a Raiders’ game, whether you’re from Kansas City or Denver, is pretty spectacular not only for sports betting but for what it does for our industry and our space.”
He thinks wagering from mobile devices is probably not the threat to physical casinos that many imagine. “The idea that I could talk to you 365, make you hopefully understand our brand and our product by the device you have in your hand,” he told ESPN, “and earn some loyalty and an opportunity for you to come and motivate that trip, I feel really good about. I have no concerns.”
One challenge, says Hornbuckle, is to enable wagers on sports actions happening in real time. “The challenge today is that it doesn’t allow us to do anything instantly. But if you’re sitting at a tee box at a par three, you can make that bet. There’s a lot of propositions we can put into play,” he said.
He concluded, “It’s a dogfight. I view this much like the telecom industry. There’s going to be four or five real winners and a bunch of everybody else. … It’s going to take those who are strong of heart and deep wallets. It’s going to be several hundred million dollars in investment before we come to an environment where we think we’re making money and we’ve gained that market share.”
