New York-based sports technology and marketing company TAPPP and iGaming giant BetMGM announced Tuesday an “aggressive expansion” of BetMGM’s gift card distribution network. The number of stores carrying BetMGM prepaid cards will roughly double from around 6,000 to more than 12,000 in the current quarter.
BetMGM’s partnership with TAPPP launched in September 2021, a move that has attracted new customers, and provided existing customers “with a fast, flexible option to fund their BetMGM accounts in states in which sports betting is legal.”
According to a press release, since its inception, the BetMGM gift card business has experienced an industry-leading redemption rate of 99%, with nearly 75% of customers redeeming their purchases within just 2 hours.
BetMGM gift cards are now available in 12 states, including recent debuts in New York and Pennsylvania, and upcoming launches in Wyoming and Mississippi.
The company stated that “this quarter’s expansion will push the distribution network further into the grocery segment, a vastly underutilized retail space in sports betting prepaid cards, and within big box/home improvement retailers.”
“The launch of our prepaid sports betting card business has exceeded all expectations, and we are looking forward to even greater success as legal sports betting continues to enter new markets across the country,” said Matt Prevost, Chief Revenue Officer of BetMGM.
“The program’s expansion this quarter is the latest phase of our continued successful partnership with TAPPP to provide customers with an easy and responsible way to fund their BetMGM accounts,” he added.
TAPPP’s API-driven platform provides real-time redemption data which helps drive BetMGM’s marketing and acquisition campaigns. TAPPP also provides BetMGM with strategic support, payment servicing, and sales analytics all of which help drive sales and customer retention.
Matt Prevost, Chief Revenue Officer of BetMGM.
Last week, BetMGM reported $271 million in net revenue in the first quarter of the year, up 58% compared to the same period in 2021. It has also posted an EBITDA of $178 million (versus $160 million in Q1 2021).
The company’s management said the brand has achieved the number one position with a 25% share in the U.S. sports betting and iGaming markets where it operates. It also stated that it has consistent leadership in the U.S. iGaming market with a 29% share.