Entain’s BetMGM stateside JV progressing towards profitability

BetMGM had a positive update for Entain and MGM Resorts International investors today, as the US-facing joint venture reported positive EBITDA for Q2 2023 

The joint venture between London-based, LSE-listed Entain and Las Vegas-headquartered, NYSE enterprise MGM was first launched in 2019, but so far profitability has eluded the sportsbook brand.

In its latest update, BetMGM reported H1 revenue of $944m, in line with the ‘upper end’ of predictions outlined earlier this year, and is anticipating full year earnings of between $1.8-2bn, coupled with the announcement of positive EBITDA.

This also falls in line with predictions made by Entain made in March in the group’s FY2022 trading results. The global bookmaker asserted that BetMGM would achieve positive EBITDA by the second half of the year, driven by then market share of 29% in sports betting and 18% in igaming.

BetMGM CEO, Adam Greenblatt, said: “I am pleased with the significant progress we have made during the first half of 2023 as we continue our strong growth and remain on our path to profitability

“Our financial guidance for the year remains on track – we expect to deliver $1.8 to $2.0bn in full year revenue, as well as to be EBITDA positive in the second half of 2023. In fact, we have already achieved positive EBITDA for the full second quarter of this year.” 

According to today’s update, BetMGM has total market share across the US – encompassing both betting and gaming verticals – of 10%, placing the brand as the third leading player in the sector after FanDuel and DraftKings.

Sports betting remains the leading segment with the company, with revenue per player standing at 65% and each state market generating positive results for the brand during the second quarter.Another positive note saw a decline in acquisition costs, with costs per acquisition (CPA) dropping 8% during the quarter. 

The combination of these factors has given BetMGM confidence that it can achieve sustainability in H2 without any further investment from either Entain or MGM beyond the $150m allocated at the start of the year.

“Our focus remains on building a sustainable, scalable, and returns-focused business with leading products that our players enjoy responsibly,” Greenblatt concluded.

“We look forward to the remainder of the year, buoyed by ongoing product improvements, tremendous support from our shareholders providing access to new assets and partnerships, and – above all – our extraordinary team at BetMGM.”