BetMGM wants to achieve a 25% share of the US market by 2026. It also targets delivering a positive EBITDA of $500.0m ($396.1m/EUR462.2m/PS396.1m).
BetMGM announced its 2026 target after it revealed that they expect to achieve the upper end of their guidance for 2023. According to Adam Greenblatt, the revenue for this financial year should range between $1.80bn – $2.00bn.
Greenblatt, at an investor meeting yesterday (4th December), explained that BetMGM – a joint venture between Entain, MGM Resorts International and MGM – was set to become self-funded by 2024.
After proving profitability in 2023, the business views next year as a period of investment. BetMGM is expecting a negative EBITDA in 2024, despite its expectation of achieving a profit for H2 2023.
Investment plans
Greenblatt and Gary Deutsch, CFO of the company Greenblatt, refused to disclose how much money was available for investment. The pair did say that there is enough money to compete and invest in growth on the highest level. The business is also expected to be EBITDA positive by 2025.
Las Vegas will be an important part of BetMGM’s plan for 2024. Greenblatt stated that BetMGM was better positioned than other operators to capitalize on sports fans who visit the city.
More than 300,000.00 fans attended the recent Formula One race held in Las Vegas. BetMGM had a record weekend in which it took more bets on the F1 race than ever before.
This event was also the most profitable weekend ever for MGM Resorts. BetMGM hopes to use this demand once again for the Super Bowl, which will be held at Allegiant Stadium Las Vegas. In 2024, it also intends to integrate Nevada in a single wallet.
BeMGM 2020: A year for expansion
BetMGM has now expanded to 28 new markets. Greenblatt announced that North Carolina would be the next market, followed by New York, Maryland, and Illinois.
Greenblatt stated that BetMGM was now the third-largest online operator by total market share in the US. It now has a total of 17% in North America behind FanDuel, and DraftKings.
BetMGM’s long-term market share is expected to be between 20% and 25%. Greenblatt also highlighted updates to the NFL platform and placed emphasis on new payment methods and omnichannel as key drivers for player retention and engagement in 2024. Recently, the operator launched its services in New Jersey through a partnership between Wheel of Fortune Casino and Greenblatt.
Entain acquired specialist sports data provider Angstrom in July, for over PS200m. This will be available at the beginning of 2024 NFL Season. BetMGM anticipates that Angstrom will “greatly improve the depth and width” of its sports offerings. This includes same-game wagering.
Greenblatt highlighted an improved cross-sell program and personalisation as two aspects that the company will look to leverage to enhance its player acquisition strategies.
2023 in Reflection
BetMGM has had a solid year despite a cyberattack on MGM in September. It was forced to close down all systems in its US properties as a result of the attack.
Bill Hornbuckle, CEO of MGM Resorts, said that MGM was “in hell and back” after losing $100m revenue. The financial impact of the breach was somewhat mitigated by expansion in the UK and China.
The brand’s UK debut was made a highlight by an agreement with English Premier League team Newcastle United. They benefited from a large presence in the stadium of St James’ Park. Hollywood actor Chris Rock will also be featured in various marketing campaigns.
The UK launch, however, was done in partnership with LeoVegas and not Entain. Greenblatt said BetMGM was still a strategic limb of Entain as well as MGM Resorts. He cited their support for proof of endorsement.
MGM’s bid of PS8.10bn for Entain was also rejected by 2021. Hornbuckle said that no more attempts would be made to buy Entain in a February earnings call.
