The dream of going EBITDA-positive by year’s end becomes ever more tangible for MGM Resorts-Entain iGaming joint-venture BetMGM, following a successful FY 2024.
Total net revenue for the fiscal year just gone was up seven percent, y-o-y, to US$2.1 billion (£ 1.67bn); iGaming revenue surged 13 percent to a record US$1.5 billion (£1.19bn) and the company, now firmly ensconced as one of America’s leading sports books saw an impressive 14 percent increase in average monthly active players, that key AMAP metric.
And the second half of 2024–despite a run of pro-customer House losses in December sporting events–showed accelerating growth, with adjusted net revenue up 19 percent – compared to H1’s more modest increase of six percent.
Confidence
“2024 was a year of investment and rebuilding of momentum for BetMGM,” affirmed CEO Adam Greenblatt in a company statement, released today.
“Our successful strategic refinement saw BetMGM exit the year with encouraging run rates across our key metrics and Q4 EBITDA trend towards breakeven on a normalized basis.
“With BetMGM’s renewed acceleration across both iGaming and Online Sports we expect to achieve positive EBITDA in 2025, and our scaled podium position in the world’s largest gaming market underpins our confidence in our pathway to US$500 million EBITDA in the coming years [£398.88m].”
Meantime, more prosaically, the New Jersey-headquartered outfit, founded in 2018, posted an EBITDA loss of US$244 million (£194.63m) for FY 24, as anticipated because of planned deep investment.
Still taking the fight to iGaming market leaders DraftKings and FanDuel, BetMGM continued to solidify its U.S. presence by expanding into North Carolina and Washington D.C. during the year.
Engagement
Overall, BetMGM has a 22 percent share of the iGaming action and eight percent of the online sports betting market.
The operator has also made strides in its omnichannel offerings, quite naturally, leveraging its relationship with MGM Resorts.
Integration of BetMGM Rewards with the MGM Resorts loyalty program, including Marriott Bonvoy, has created a seamless customer experience and led to increased engagement across both the online and retail sectors, the company noted in its financial report.
BetMGM has also introduced a nationwide digital wallet for bettors in Nevada, enabling a continuous betting experience across state lines.
Forecasting Net Revenues of between US$2.4 billion and US$2.5 billion (£1.91bn-£1.99bn), the company now expects to be EBITDA-positive in FY25.
Added Greenblatt: “With a clear path to scaling its operations and improving revenue growth, BetMGM is confident in its future growth prospects.
“The company’s long-term goal of reaching US$500 million in EBITDA remains a central focus, supported by ongoing investments, expanding market share, and increasing operating leverage.”
