BetMGM revenue nears $2bn in 2023

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Revenue for the 12 months to 31 December 2023 amounted to $1.96bn. BetMGM forecast between $1.80bn and $2.00bn for the full year, with several developments helping to drive growth.

In line with its business update in December, BetMGM says it remains on track to reach a positive EBITDA of $500m by 2026. This comes despite it expecting to post negative EBITDA of $67m for 2023.

Highlights for BetMGM in 2023 include key metrics for igaming and online sports betting improving year-on-year. Average monthly actives, first time deposits, hold percentages, bonus levels, net gaming revenue per active, and cost per acquisitions improved.

Continued expansion in North America

BetMGM was able to expand its presence in North America and is now active in 28 markets across the region. New launches in 2023 included Ohio, Massachusetts and Kentucky, all of which were online and retail, while it also rolled out online in Puerto Rico.

Further expansion is also on the horizon with a deal in place in North Carolina. BetMGM last month struck up a partnership with Charlotte Motor Speedway and set to launch in March, pending regulatory approval.

As for market share, BetMGM says it has a 14% sports betting and igaming share in the US. The operator also says it holds 22% of the market in Ontario in Canada.

“Our performance in 2023 demonstrates our commitment to delivering on our promises,” BetMGM CEO Adam Greenblatt said. “We were able to achieve strong organic growth, while executing against key strategic initiatives that lay the foundation for 2024 and beyond. 

“The attainment of EBITDA profitability over the last three quarters of 2023 validates the effectiveness of our business model and provides the basis from which to invest further in expanding our sports offering through the integration of Angstrom and leveraging our largely untapped Las Vegas omni-channel advantages.”

Following the BetMGM roadmap

On the subject of new development, BetMGM remains committed to the strategic roadmap set out in December. This includes technology, product and capability enhancements across its offering.

Last year, BetMGM executed single account single wallet across 21 markets in time for the 2023 NFL American football season. It also expanded sports betting with new markets and bet types and added more games to its igaming offering.

Looking to 2024, its plans include utilising Angstrom, the specialist sports data provider it acquired in July. This will be fully enabled come the start of the 2024 NFL season. The operator BetMGM plans to leverage Angstrom modelling to support products such as player-popular same game parlay (SGP), SGP+ and new LIVE SGP products.

BetMGM also committed to more personalised and differentiated gaming experiences, as well as more investment in marketing and player acquisition. In addition, BetMGM rolled out is new app last month, with this now live in Nevada.

“With this comprehensive roadmap in place, we can focus on driving accelerated player acquisition and retention and strengthening our current market position,” Greenblatt said. “This clear strategic direction underpins our confidence in achieving our targets and building long-term, sustainable value for shareholders.”

What about the UK?

Interestingly, the update does not make reference to the launch of BetMGM in the UK. Back in August, BetMGM went live in the UK market to much fanfare. However, the venture does not include Entain, with MGM choosing to work with its LeoVegas business – to much success, according to UK director Sam Behar.

In the wake of this, Greenblatt insisted BetMGM still represents a “strategic limb” of Entain and MGM. He highlights Entain’s support as evidence of the endorsement. Incidentally, MGM saw an £8.10bn bid for Entain rejected in 2021.

Back to 2023 and issues impacted the wider group, specifically MGM. In September, MGM was hit by a cyberattack that forced it to shut down systems across its US properties.

MGM Resorts CEO Bill Hornbuckle said MGM had been to “hell and back”, losing $100m in revenue after the breach.

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