Guided by a strong performance and a strategic roadmap, BetMGM, the sports betting and iGaming operator, looks ahead with financial optimism, setting a 2026 target for a substantial EBITDA margin. Following a detailed investor briefing led by CEO Adam Greenblatt, the joint venture between industry giants Entain and MGM Resorts International revealed aspirations for a revenue range between $1.80 billion and $2.00 billion for the fiscal year 2023.
Greenblatt confidently announced that BetMGM would transform into a self-funding entity beginning in 2024, forecasting a profitable second half for 2023. However, the company anticipates a negative EBITDA for 2024, describing the bump as an “investment year” earmarked for laying foundations for further growth and consolidation.
The scale of monetary resources allocated for investment plans remained undisclosed, but Greenblatt, alongside CFO Gary Deutsch, reassured investors of ample funds poised to propel BetMGM to the forefront of the market competition.
Strategic bets on high-profile events in Las Vegas play a significant part in BetMGM’s growth narrative. Greenblatt underscored the venture’s prime positioning to tap into the influx of sports enthusiasts to the city. Citing the example of the record-breaking Formula One race weekend in Las Vegas, which tripled the operator’s typical betting volume for an F1 event, the CEO highlighted the potential for elevated betting activity around marquee events like the upcoming Super Bowl slated to take place at Allegiant Stadium.
The enterprise’s expansion blueprint includes consolidating its presence in 28 markets, with North Carolina next in line and prospects awaiting in New York, Maryland, and Illinois. BetMGM currently boasts a 17% market share in North America, proudly standing third behind leaders FanDuel and DraftKings. The company harbors ambitions of reaching a long-term market share of 20-25%. Leveraging NFL platform updates, omni-channel initiatives, and new payment methods, Greenblatt pointed towards these enhancements as pivotal factors in driving customer engagement and retention in 2024, further complemented by a recent New Jersey partnership with Wheel of Fortune Casino.
An acquisition by parent company Entain has strategically positioned BetMGM with Angstrom, a sports data specialist, which is set to be fully integrated in time for the 2024 NFL season. This integration is expected to amplify the operator’s sports betting offerings significantly.
In the quest to deepen market penetration, Greenblatt underscored the significance of personalization and an improved cross-sell program to bolster their player acquisition strategy.
Despite encountering turbulence, such as an MGM cyberattack that necessitated system shutdowns across US properties and incurred a revenue loss of approximately $100 million, the MGM brand has resiliently forged ahead. MGM Resorts CEO Bill Hornbuckle recounted the challenges but also noted the business’s expansion initiatives, including growth in China and entry into the UK market—a move reinforced by a collaboration with English Premier League’s Newcastle United.
BetMGM’s UK foray, however, bypassed Entain, partnering with LeoVegas instead. In defense of this strategic decision, Greenblatt emphasized the joint venture’s significance to both parent entities. Moreover, following an unsuccessful bid by MGM to acquire Entain in 2021, Hornbuckle assured stakeholders that the company would forego any further acquisition attempts.
Within the dynamic landscape of sports betting and iGaming, BetMGM’s anticipation of financial uplift by 2026 stands testaments to its strategic vigor and adaptability, as it navigates both challenges and triumphs in shaping its promising future within the sector.
