BetMGM revenue flies near $2bn mark in 2023

Entain plc’s and MGM Resorts’ North American co-venture BetMGM has delivered its financial performance report for FY 2023, registering a positive EBITDA for H2.

Financials

The business saw its net revenue from operations grow by 36% year-over-year to $1.96bn, which represents the upper end of its $1.8bn to $2bn guidance range.

Same-state net revenue from digital operations grew by 14%, with average monthly actives, first-time depositors, hold percentages, bonus levels, NGR per active, and cost per acquisition improving YoY across both igaming and online sports betting.

BetMGM also stated that it achieved positive EBITDA in the second half of the year, with an expected FY23 EBITDA loss of approximately $67m.

Market Diversity

The operator currently has a presence in 28 markets across North America, with access to 49% of the adult population. It also holds 14% of the sports betting and igaming market share in the US, and 22% in Ontario.

In 2023 BetMGM launched its online and retail offering in Ohio, Massachusetts and Kentucky, as well as Puerto Rico. The company also signed Charlotte Motor Speedway as a partner to prepare for entry into the upcoming legislated sports betting market of North Carolina later this March.

Technology drives growth

Technology and product enhancements have been key to BetMGM’s operational success.

The operator brought its single account single wallet solution to 21 markets ahead of the 2023 NFL season, updated its sports betting experience with faster speeds, broader market coverage and new differentiated bet types and introduced new in-house exclusive games, such as Dual Play Roulette.

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

2024 outlook

This year, BetMGM will look to expand the depth of its sports offering by leveraging its 2023 acquisition of sports analytics provider Angstrom, while delivering more personalised gaming experiences and exclusive MGM-branded content.

BetMGM’s management also expects increased investments into marketing and player acquisition resulting in improved player retention rates.

Greenblatt added: “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.”

Safer gambling initiatives

The operator has maintained its commitment to player protection by extending its partnership with GameSense for five more years, signing with nine NFL teams to promote responsible gaming during live games, and teaming up with Kindbridge Health to evaluate the efficacy of self-excluded individuals’ referrals for problem gambling treatments.

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