BetMGM aims to reach 25% market share in the US by 2026, as well as delivering $500.0m (£396.1m/€462.2m) in positive EBITDA.
BetMGM set the 2026 goal after revealing it expects to be at the higher end guidance for 2023. In the current financial year, revenue should be between $1.80bn and $2.00bn, according to CEO Adam Greenblatt.
At an investor presentation yesterday (4 December), Greenblatt detailed how BetMGM, a joint-venture by Entain and MGM Resorts International, was expecting to be self-funding from 2024 onwards.
The business sees next year as an investment period, having already proved profitability in 2023. While it expects to achieve a profitable H2 2023, BetMGM expects negative EBITDA for 2024 in what it bills as an “investment year”.
When pressed on how much cash was available to invest, Greenblatt and CFO Gary Deutsch would not disclose the exact amount. However, the pair said plenty of money is available to “compete and invest for growth at the highest levels”. It is also hoped the business will be EBITDA-positive in 2025.
Las Vegas is set to be a vital part of BetMGM’s plans for 2024. Greenblatt said BetMGM is positioned better than any other operator to take advantage of sports fans visiting the city.
The recent Formula One race in Las Vegas attracted more than 300,000 fans. In a record-breaking weekend, BetMGM took three times the number of bets than any other F1 contest in its history.
The event also proved to be the highest grossing weekend for the MGM Resorts arm. BetMGM now aims to utilise that demand again with the upcoming Super Bowl at the Allegiant Stadium in Las Vegas. It also plans to simultaneously integrate Nevada into a single wallet platform in 2024.
BetMGM 2024: A year of expansion
BetMGM is now available in 28 markets. Greenblatt said North Carolina will be its next entry, with further opportunities in New York, Maryland and Illinois.
Aggregated by market share, Greenblatt said BetMGM is now the third largest online operator in the US. In total, it now holds a 17% market share in North America, behind only FanDuel and DraftKings.
It is understood BetMGM is now targeting long-term aggregate market share of 20%-25%. Greenblatt highlighted upgrades to its NFL platform, placing emphasis on omnichannel and new payment methods as its key drivers of player engagement and retention in 2024. The operator also recently launched in New Jersey via a partnership with Wheel of Fortune Casino.
Specialist sports data provider Angstrom, acquired by Entain in July for a deal worth over £200m, will also be fully enabled come the start of the 2024 NFL season. BetMGM expects Angstrom to “greatly enhance the depth and breadth” of the company’s sports offerings, including same-game parlays.
Greenblatt also highlighted personalisation and an enhanced cross-sell programme as aspects the company would look to leverage in order to boost its player acquisition strategy.
2023 in reflection
BetMGM’s solid year comes despite an MGM cyberattack in September. The attack 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. However, expansion into the UK and growth in China somewhat offset the harmful financial impacts of the attack.
As a major highlight of the year, the brand’s UK launch was aided by a deal with English Premier League club Newcastle United, benefitting from an extensive presence within the club’s St James’ Park stadium. Hollywood star Chris Rock has also been recruited to feature in a range of marketing campaigns.
However, the UK launch was made in partnership with LeoVegas, not Entain. Greenblatt insisted BetMGM still represented a “strategic limb” of both Entain and MGM Resorts, citing their support as evidence of the endorsement.
MGM also saw an £8.10bn bid for Entain rejected in 2021. Hornbuckle stated no further attempts to purchase Entain would be made on a previous earnings call in February.