In a year marked by strategic growth and operational enhancements, BetMGM has come close to achieving a significant financial milestone, with its revenue for the year 2023 reaching $1.96 billion. This figure approaches the upper end of the company’s own projections, which estimated full-year revenues to be between $1.80 billion and $2.00 billion, showcasing the far-reaching success of the company’s initiatives.
Despite projecting a negative EBITDA of $67 million for the year 2023, BetMGM remains steadfast on its path to profitability, with expectations to hit a positive EBITDA of $500 million by the year 2026. This confidence is supported by the achievement of EBITDA profitability over the final three quarters of 2023, affirming the vitality of the brand’s business model.
The year brought several significant achievements for BetMGM, not least of which were improvements seen across important metrics within igaming and online sports betting sectors. These metrics include the number of average monthly actives, first-time deposit rates, hold percentages, bonus levels, net gaming revenue per active customer, and cost per acquisition – all indicators of healthy growth and improved efficiency.
BetMGM’s geographical footprint has also expanded substantially. The brand’s influence now spans 28 markets across North America, including the introduction of operations in Ohio, Massachusetts, and Kentucky, where both online and retail betting were launched. Puerto Rico also saw the introduction of the brand’s online services. Prospective expansion in North Carolina is on the horizon, with a partnership already established with Charlotte Motor Speedway and launching plans set for March, contingent on regulatory authorization.
Market share positions paint a bright picture for BetMGM, with the operator claiming 14% of sports betting and igaming share in the U.S., as well as boasting a commanding 22% hold in Ontario, Canada’s competitive market.
“Our performance in 2023 demonstrates our commitment to delivering on our promises,” stated Adam Greenblatt, CEO of BetMGM. Greenblatt credits the company’s robust growth to strategic planning and foundational efforts for future years. He highlighted the integration of Angstrom, BetMGM’s sports offering, and the potential to tap into the relatively unexplored Las Vegas omni-channel opportunities.
On the development front, BetMGM remains dedicated to enhancing technology, products, and capabilities within its vast service offering. Notable advancements over the year included the execution of a unified account and wallet system in 21 markets, timed for the NFL’s 2023 season. They have expanded sports betting by incorporating new markets and betting types and have enhanced their igaming offerings with added games.
Looking ahead to 2024, BetMGM plans to fully enable their newly acquired sports data provider, Angstrom, before the NFL season kicks off. This utilization will support the development of favored products such as same game parlays and new live betting options. Furthermore, they aim to offer more personalized and differentiated gaming experiences and intensify marketing and player acquisition efforts.
With a reinforced strategic approach, BetMGM is focusing on boosting player acquisition, retention, and strengthening its market position. According to Greenblatt, this strategy underscores the company’s confidence in hitting targets and building long-term value for BetMGM’s shareholders.
While a notable success, the 2023 business update was silent on BetMGM’s launch in the UK, a significant move in August. This venture, detached from the Entain partnership, utilized MGM’s LeoVegas business and has so far been received well, as shared by UK director Sam Behar. Despite this separate venture, Greenblatt ensures that BetMGM continues to represent a strategic component of both Entain and MGM’s business strategies.
Lastly, 2023 presented some challenges for the broader MGM group, exemplified by a cyberattack in September that impacted MGM’s systems and cost the company an estimated $100 million in revenue. Nevertheless, MGM Resort’s CEO, Bill Hornbuckle, highlighted the resilience of the firm in the face of adversity, portraying a determined optimism for future recovery and prosperity.
