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BetMGM CEO Adam Greenblatt (left) speaks with CNBC’s Contessa Brewer (right) at the SBC Summit North America.
- BetMGM CEO Adam Greenblatt today opened the SBC North American Summit
- Greenblatt said BetMGM will build up its sports betting program for crossover into iGaming
- iGaming legalization is a matter of when, not if, but there are risks
The 2024 SBC Summit North America kicked off with a bang, as CNBC’s Contessa Brewer discussed BetMGM’s future in the U.S. with CEO Adam Greenblatt.
Greenblatt noted the company will focus on building up its sports betting customer base in hopes of crossover opportunities into its iGaming platform.
While iGaming will certain take time for legalization, and it does pose some risks, it will eventually happen in the U.S., he said.
Matter of When, Not If for iGaming
While BetMGM has recently been overtaken in the U.S. iGaming market by both FanDuel and DraftKings, Greenblatt noted the company will continue to focus on building up its sports betting costumer base as crossover opportunities will come from that retention.
More than 60% of sports betting customers crossover into other gaming opportunities within BetMGM, he said.
“This goes back to why it’s so important for us to be building our sports betting business, and also a reason why having a bigger sports business is an advantage for us with iGaming,” he said.
BetMGM is currently the top iGaming operator in Ontario with a 22% overall market share, and operates in five states in the U.S. with a 22% aggregate market share. However, Greenblatt noted that the slow crawl of iGaming legalization has made it a risky proposal to focus on.
Outspoken brick-and-mortar casino representatives have shown concerns over potential cannibalization risks of iGaming legalization, he said, which may have made lawmakers pause when considering new bills.
Maryland came close to getting across the finish line this year and New York has had conversations, but there has been little other movement, Greenblatt said.
“I believe in iGaming, it’s a case of when and not if, but the when still has risk,” he said.
Limiting Props Pushes Customers Away
The sports betting controversy of Jontay Porter has been a hot-topic in sessions for the early going at the SBC North American Summit.
Porter, a two-way player for the Toronto Raptors, was officially banned from the NBA due to his role in a sports betting scandal.
An NBA investigation found the backup forward/center provided a sports bettor with confidential information, limited his participation in one or more games for betting purposes, and bet on several NBA games.
Porter was found to have bet against the Raptors in a parlay while he traveled, but did not play, with the team earlier this year.
A hypothetical solution proposed to Greenblatt to ensure another player sports betting controversy does not happen is to limit prop bets on the under for professional sports.
Legalized sports betting, Greenblatt said, provides the necessary transparency that can help prevent such controversies from occurring. If a prohibition on props for the under were to be put into place, bettors would know where they could find them.
“Are we so naïve to believe the under is not available in the illegal markets? Are we that misguided?” he said.
Rob covers all regulatory developments in online gambling. He specializes in US sports betting news along with casino regulation news as one of the most trusted sources in the country.