BetMGM and X Partnership Reportedly in the Works
Reports have emerged this week that Elon Musk’s social media site X may have found a big new advertiser in the form of U.S. online gambling giant BetMGM.
Since rebranding to X after billionaire Musk’s $44 billion acquisition of Twitter in 2022, the site has struggled to keep some of its top ticket advertisers.
With a noticeable change in content policy, many corporate giants were afraid of the reputational damage of being seen alongside controversial posts.
That seemingly has not bothered BetMGM. The joint operation between the largest U.S. gambling operator MGM Resorts International and European operator Entain has been ramping up its promotional efforts in recent months. That’s in the face of increased competition from the likes of ESPN Bet and Fanatics.
This new deal with X hasn’t been officially announced or detailed yet. But sources say it may involve BetMGM wagering odds displayed directly through related content on the platform, including potentially one-tap links to the sportsbook (in legal markets).
BetMGM Expands Media Partnerships
The company is also at a crossroads, as 50% joint operator and investor Entain goes through management changes and other struggles.
A new partnership with what is still one of the world’s biggest social media platforms could go somewhat toward calming investor concerns.
The U.S. market is heavily dominated by DraftKings and FanDuel. But BetMGM still saw steady growth over 2023. Now, BetMGM’s third-place U.S. market share of around 17% is increasingly under threat going into 2024.
Penn Entertainment’s ESPN Bet has shaken things up with its brand recognition and aggressive promotional spending, aiming to overtake BetMGM as the third-most popular sportsbook for U.S. players by 2025.
Gambling Income to X
Musk’s social media platform should also be quite happy to integrate BetMGM into their fold.
The operation’s advertising sales are down 50% on 2021 at some $2.5 billion. Although there’s no indication the BetMGM partnership will make them anywhere near that much, it could still be a substantial chunk of change.
X has also been widely associated with sports and sports betting for quite a while now, with it being the main content platform for most U.S. betting operators. So the key audiences definitely intersect.
In fact, with some 100 million Americans still regular users of the platform, the 2023 Super Bowl was X’s busiest period since its rebrand.
So much so that it crashed as the swift cuts made during the initial stages of Musk’s takeover left its systems stressed.
Reportedly, Musk recently asked X staff to hold back on development projects and focus on stability ahead of the 2024 Super Bowl LVIII in Las Vegas.
The initial tech issues have now (mostly) been sorted, and X still has a sizeable following, even if it is down around 10% on the peak of Twitter usage.
Meanwhile, BetMGM will be looking to make the most of cross promotion with its Nevada casinos, whether on X or elsewhere, as Las Vegas looks forward to hosting the biggest U.S. sporting event for the first time.