Gaming Realms PLC's (LON:GMR) launch of three Slingo games in Michigan with BetMGM, the joint venture between Entain and MGM is another piece of the strategic puzzle slotting into place as expected, says Peel Hunt.
“With continued solid underlying growth in online gambling markets and a bow wave for Gaming Realms from relatively recent client wins,” buy is its recommendation with a 60p target price.
Michigan, which legalised both sports betting and online gaming in January 2021, has grown quickly to be the third-largest state in terms of GGR, much faster growth than was expected prior to launch.
BetMGM is the iGaming market leader in Michigan and Gaming Realms has signed agreements with other leading operators in the state.
“It appears that Gaming Realms has fewer competitors in terms of content suppliers in Michigan and there is therefore the potential for the revenue contribution from the state to exceed the £0.7m we have pencilled in for FY21E.”
Shares rose 0.6% to 32.7p.