Baby Boomer BetMGM Gets Up, Walks, Talks in FY23
Whatever the travails currently assuaging its British co-parent, Entain, premier US sportsbook BetMGM has delivered a sterling FY23 that keeps it well on point to go EBITDA positive by the end of this full year; with the glittering promise of a half-a-billion-dollars payola in 2025.
Co-owned by Vegas casino leviathan MGM Resorts International, the sportsbook boomer is active in 28 territories across the US and Canada, reaching almost half the playable adult population and holding an estimated 14 percent of the US market, and some 22 percent in Ontario — the only province in Canada, where online sports betting is currently legal.
The stats–with Net Revenue surging 36 percent, year-on-year, to US$1.96 billion (£1.55bn)–puts BetMGM third, behind Flutter’s FanDuel and Massachusetts-origin DraftKings, in the race to dominate the world’s richest online sports betting market.
Pretty much all indicators are fierce and strong in the BetMGM playbook.
Growth has been underscored by a 14 percent increase in same-state Net Revenue from digital operations.
And there have been continuing rises in Average Monthly Active Users, first-time depositors, hold percentages, bonus levels, Net Gaming Revenue per-active-user, and cost-per-acquisition.
Drive
Significantly, BetMGM achieved EBITDA positivity in the second half of 2023, thus ameliorating an expected annual EBITDA loss of approximately US$67 million (£53.15m).
During 2023 the operator launched in four new markets: Ohio, Massachusetts, Puerto Rico and Kentucky.
BetMGM aims to drive growth this year by expanding its sports offerings, deliver even more personalised gaming experiences, and leverage its Omnichannel muscle – especially in the gambling Mecca of Las Vegas.
“Our performance in 2023 demonstrates our commitment to delivering on our promises,” affirmed BetMGM CEO Adam Greenblatt, who said the company is now looking to hit a target of US$500m (£396.64m) positive EBITDA by FY2025.
“We were able to achieve strong organic growth, while executing against key strategic initiatives that lay the foundation for 2024 and beyond.
“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 Omnichannel advantages.
“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.”
With Disney-powered thoroughbred ESPN Bet coming-up fast on the inside, they’d also do well to keep checking their rearview mirror if they’re to maintain their place on the US sports betting winner’s podium.
