BetMGM’s First Half 2023 Update: Strong Performance and Expansion

BetMGM, a prominent sports betting and iGaming operator in North America, jointly owned by Entain plc and MGM Resorts International, recently provided an update on its First Half 2023 (1H 2023) performance and outlook for the full year. The update revealed strong financial performance for BetMGM, with net revenue from operations reaching US$944 million (£728 million/€849 million) in 1H 2023. This puts the company on track to meet its previous guidance range of $1.8 to $2.0 billion for FY 2023 revenue.

During the first half of 2023, BetMGM witnessed significant growth, with a 25% same-state growth in net revenue from digital operations. Additionally, the company achieved a key milestone by recording positive EBITDA for 2Q 2023. The implementation of a bonus optimization and player management program had a positive impact, leading to a 300 bps increase in Sports NGR margin in 1H 2023 year on year. Furthermore, each of the annual cohorts of digital sportsbooks launched from 2019 through 2022 delivered positive Contribution Profit in 2Q3.

BetMGM has been expanding its presence in various markets during 1H 2023, including new digital sports betting launches in Ohio, Massachusetts, and Puerto Rico. With its current presence in 26 jurisdictions, including Ontario, the company has access to approximately 48% of the adult population in the United States. In terms of market share, BetMGM holds 18% across both iGaming and sports betting in the US, with a 27% market share in iGaming specifically.

The company remains committed to delivering a seamless gaming experience and prioritizing responsible gambling practices. It has extended its GameSense partnership for five more years, emphasizing responsible gambling messages in its digital and out-of-home marketing campaigns, mobile app, and retail sportsbooks. BetMGM has also been recognized for its dedication to responsible gambling, receiving one of the Responsible Gambling Council’s top accreditations for integrating responsible gambling and player protection into its platforms and operations.

Looking ahead, BetMGM is on track to achieve its goal of becoming EBITDA positive in the second half of 2023 (2H 2023). This includes investments in upcoming launches in Kentucky and North Carolina that were not originally planned for 2023. The company anticipates becoming self-sustaining in 2H 2023, with no additional equity investment expected from Entain or MGM Resorts after the $150 million previously committed for 2023.

BetMGM’s strategic partnerships with Entain and MGM Resorts have been instrumental in accelerating the company’s product evolution and expanding its access to players. For instance, Entain’s acquisition of pricing and risk specialist Angstrom is set to enhance BetMGM’s sports betting offering, particularly in the fast-growing markets of parlay and in-play wagering. Additionally, the exclusive partnership between MGM Resorts and Marriott will enable BetMGM to offer customers extensive opportunities to earn Marriott Bonvoy points while playing with BetMGM.

BetMGM’s First Half 2023 update reflects its continued growth and success as a leading sports betting and iGaming operator in North America. With a strong financial performance and ongoing commitment to responsible gambling, the company is well-positioned to further expand its market presence and deliver an exceptional gaming experience to its customers.

Adam Greenblatt, Chief Executive Officer of BetMGM, commented: “I am pleased with the significant progress we have made during the first half of 2023 as we continue our strong growth and remain on our path to profitability. Our financial guidance for the year remains on track – we expect to deliver $1.8 to $2.0 billion in full year revenue, as well as to be EBITDA positive in the second half of 2023. In fact, we have already achieved positive EBITDA for the full second quarter of this year. Our focus remains on building a sustainable, scalable and returns focused business with leading products that our players enjoy responsibly. We look forward to the remainder of the year, buoyed by ongoing product improvements, tremendous support from our shareholders providing access to new assets and partnerships, and – above all – our extraordinary team at BetMGM.”

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