With revenue reaching $1bn in the first half of 2024, BetMGM expects growth to accelerate in H2, underpinned by Angstrom’s product capabilities and leveraging its omnichannel opportunities through MGM Resorts.
In a trading update published today (29 July), BetMGM chief executive Adam Greenblatt described 2024 as an investment year, focused on improving customer acquisition and enhancing player experiences.
Net gaming revenue (NGR) for the six months to 30 June grew 6% year-on-year. Despite no new state launches revenue grew 9% year-on-year in Q2, following a slower first quarter.
This showed the strategy of investing in players gain momentum, Greenblatt said, with BetMGM exceeding its acquisition and retention targets for the six-month period. This was helped by a successful Super Bowl campaign featuring Tom Brady, Wayne Gretzky and Vince Vaughn and a takeover of Las Vegas, helping sign up new players at “encouraging” cost per acquisition rates.
Product investment pays off for BetMGM
Leveraging Angstrom, the product and pricing specialist acquired by Entain last year, is a key element of BetMGM’s growth plans.
BetMGM rolled out new markets and features for MLB and NBA matches, including enhanced same game parlay (SGP) products. During the MLB season so far, active customers placing SGP bets are up 40% year-on-year, with the volume of weekly MLB SGPs doubling.
“Our online sportsbook players have been enjoying Angstrom-enabled product capabilities since the start of the baseball season,” CEO Greenblatt said. “[We] look forward to players enjoying this across our wider sports offering leading into the NFL season.”
The growth in SGPs contributed to a 16% rise in sports betting NGR per active player in Q2 and the operator plans on leveraging the MGM Resorts connection further to grow sports betting revenue during the NFL season.
“We are also very excited to bring our unique omnichannel opportunities to players by fully leveraging MGM Resorts’ presence in Las Vegas,” Greenblatt continued. “Single Account Single Wallet will be an important driver of the customer experience, with Nevada marking its completion ahead of the NFL season.”
The Single Account Single Wallet (SASW) rollout in Nevada enables BetMGM customers to sign up at one of its eight retail sportsbooks and use their wallets when they return to their home state, to “unlock” the Las Vegas experience.
In the US and Ontario, BetMGM had a 13% market share across sports betting and igaming over H1. For online casino in isolation, it holds a 22% share of the market, with average monthly actives up 18% in Q2, despite no new state launches.
While there were no new state launches in Q2, BetMGM did go live in North Carolina towards the end of Q1, then kicked off Q3 by launching citywide in Washington DC.
Laying the foundations for growth
Supported by new marketing partnerships, including deals with the Associated Press and X, plus its tie-in with Marriott Bonvoy thanks to MGM Resorts, Greenblatt is confident BetMGM is on track to hit its long-term EBITDA target.
The operator is targeting $500m in earnings and US market share of 25% by 2026. With the focus in 2024 on investing in the foundations for that growth, BetMGM posted negative EBITDA of £123m in the first half. It expects a similar figure in H2, suggesting a full-year negative EBITDA of £250m.
“The first half of this year has been very important in laying the groundwork for BetMGM’s future,” Greenblatt said. “2024 is a year of investment. We’re focusing on improving our customer experience and stepping up our level of investment in players.
“We are encouraged to see this strategy delivering accelerating momentum. We have exceeded our goals for both acquisition and retention, which should lead to higher year-over-year revenue growth for the second half of this year into 2025.
“Our execution roadmap, building momentum and prospects ahead all support our confidence in BetMGM’s strong future,” he added.
