SBC News BetMGM signals tech roadmap to $500m EBITDA

BetMGM signals tech roadmap to $500m EBITDA

BetMGM, the US joint venture of Entain Plc and MGM Resorts, states that it is ‘accelerating momentum’ in executing its technology roadmap to enhance its products and customer experiences.

Publishing its H1 results, BetMGM generated net revenues of $1bn, up 6% on 2023 comparatives. Period growth reflects a 16% increase in Q2 sports betting and an 18% YoY increase in iGaming average monthly actives growth, “despite no new state launches”.

The JV’s H1 EBITDA stands at a loss of $123m, detailed as consistent with “expectations of 2024 being an investment year” supporting customer-related projects and technology upgrades.

As noted by BetMGM CEO Adam Greenblatt: “The first half of this year has been very important in laying the groundwork for BetMGM’s future. 2024 is a year of investment, 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.”

Year trading sees BetMGM prioritise ‘operational executions’ to enhance its app, all-round product capabilities, and wagering partnerships for sports betting and iGaming (online casino).

Of significance, technical upgrades saw BetMGM debut Angstrom sportsbook capabilities with new markets and features for MLB and the end of the NBA season, featuring in-house priced single-game parlays (SGP).

Angstrom sportsbook upgrades are expected to be delivered across the portfolio of pro-leagues of MLB, NBA, and NFL by the end of 2024.

“Our online sportsbook players have been enjoying Angstrom-enabled product capabilities since the start of the baseball season, and we look forward to players enjoying this across our wider sports offering leading into the NFL season,” Greenblatt noted.

Sportsbook upgrades form part of a new pipeline of commercial opportunities, including an expected Single Account Single Wallet (SASW) rollout in Nevada prior to the 2024 NFL season, deemed as a project to activate BetMGM customers in Las Vegas MGM Resorts properties, representing 13 million room nights annually.

Tech upgrades are detailed as “accelerating momentum and opportunities ahead all support our confidence in BetMGM’s pathway to $500 million EBITDA in the coming years.”

CEO Greenblatt concluded: “We are also very excited to bring our unique omnichannel opportunities to players by fully leveraging MGM Resorts’ presence in Las Vegas.

The Single Account Single Wallet will be an important driver of the customer experience, with Nevada marking its completion ahead of the NFL season. Our iGaming business continues to perform strongly with attractive returns, and to maximise this strength and momentum, we plan to deploy additional marketing in the back half of this year. Our execution roadmap, building momentum and prospects ahead all support our confidence in BetMGM’s strong future.”

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