Elon Musk’s X, BetMGM Confirm Sports Wagering Partnership

Posted on: February 9, 2024, 04:43h. 

Last updated on: February 9, 2024, 04:43h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Following a late-January rumor to this effect, Elon Musk’s X — the social media platform formerly known as Twitter — and BetMGM today confirmed they are working together.

Musk Twitter
Elon Musk at the recent Met Gala in New York. His social media company X, formerly Twitter, is partnering with BetMGM. (Image: Wall Street Journal)

Financial terms of the deal weren’t revealed, but the partnership is the first between a one of the most trafficked social media sites and one of the largest online sportsbook operators. BetMGM branding and odds will be integrated into X with xeets – formerly tweets – on various games featuring links to the BetMGM sportsbook.

X users in the United States can explore BetMGM’s latest betting odds on pro football, with each of the major professional and college sports expected to follow in the coming weeks,” according to a statement issued by the firms. “The odds interface provides an easy clickthrough for each game to BetMGM’s app or website, creating a seamless user experience. The integration will continue to evolve and grow in its functionality over the coming months.”

Neither BetMGM nor X mentioned if or how access to the operator’s gaming offerings will be blocked in states that don’t permit sports betting or those in which BetMGM doesn’t have a license. As of the end of 2023, BetMGM was live in 28 North American markets, including Ontario, Canada and Puerto Rico.

X Deal Could Be Boon for BetMGM

BetMGM released 2023 financial results yesterday, telling investors revenue jumped 36% last year to $1.96 billion — the higher end of a previously revealed estimate — and that it generated positive earnings before interest, taxes, depreciation, and amortization (EBITDA) in the second half of the year.

Positive factors to be sure, but BetMGM – a 50/50 joint venture between MGM Resorts International (NYSE: MGM) and Entain Plc (OTC: GMVHF) – still badly trails rivals DraftKings and FanDuel in the US in terms of market share.

On that note, it’s possible that the operator’s relationship with X will increase visibility and brand awareness. The potential potency of those factors should not be underestimated as recent research confirms that DraftKings and FanDuel are among the most valuable gaming brands in the world while BetMGM doesn’t yet crack those rankings.

X could be an ideal platform for BetMGM to bolster brand awareness. Forty-eight percent of users turn to the platform for entertainment and sports betting should fit into that sleeve and while a third use X to follow their favorite companies and brands, according to the Social Shepherd.

X Will Have Responsible Gaming Feature

As sports wagering has expanded in North America, so have issues with problem betting. BetMGM and X are attempting to mitigate that risk by featuring GameSense on the social media site. That offering was licensed to MGM Resorts by the British Columbia Lottery Corporation.

“Through the integration within BetMGM’s mobile and desktop platforms, customers can receive the same GameSense experience they have grown to count on at MGM Resorts properties nationwide,” added the operator in the press release. “This complements BetMGM’s already existing responsible?gambling tools which serve to provide customers with an entertaining and safe digital experience.”