MGM Resorts International (NYSE:MGM) announced it was adding IAC/InterActive's (NASDAQ:IAC) Barry Diller and Joey Levin to its board of directors after the media and tech company took a $1 billion stake in the casino operator.
IAC is particularly interested in MGM's online gambling operations, which it feels holds the biggest growth potential for the company. Diller is IAC's chairman; Levin is its CEO.
Betting on iGaming's growth
Diller previously said the casino's BetMGM business currently "rounded down to zero" in terms of the revenue contribution it made to the overall operation, but it was a "unique opportunity... to own a meaningful piece of a preeminent brand in a large category with immense potential to move online."
MGM president and CEO Bill Hornbuckle told analysts the sports betting and online gambling platform was on track to generate $130 million this year, a negligible amount compared to the $6.5 billion the casino operator generated last year.
But online gambling has served as a life raft of sorts for casinos that saw their resorts closed down due to the coronavirus pandemic. MGM has also become the premier sports betting outfit since sports wagering was legalized in 2018 and its BetMGM joint venture with GVC Holdings is seen as the vehicle to achieve additional growth.
Hornbuckle said in a statement announcing the IAC executives joining the board, "We believe that Barry and Joey bring the know how and vision to help us to marry our online and resort-based experiences and build brand loyalty to increase our wallet share in each area."
Diller also serves on the board of Coca-Cola, while Levin serves as chairman of Match Group and ANGI Homeservices, as well as serving on the board of Turo, a privately held peer-to-peer car-sharing service.