BetMGM is laying off 83 employees at its headquarters, as part of cost-saving measures, effective May 25.
The move was disclosed in a February public notice filed with the New Jersey Department of Labor.
In a statement to the news outlet Next.io, the company justified the action by saying, “After carefully reviewing our priorities for 2025, BetMGM has made the difficult decision to reduce headcount across some divisions of the organization.”
“We recognize the real impact this has on our colleagues and their families. As we make these unfortunate but necessary changes, our priority is supporting those affected with care and respect while ensuring BetMGM remains strong for the future. We’re confident that this will help position us for continued success as an iGaming and online sports betting leader,” the company added.
This reduction in force is part of a broader plan to improve financial performance. BetMGM employs approximately 1,400 people and aims to achieve positive EBITDA by 2025, despite losing $244 million in EBITDA in 2024.
This is higher than its $62 million loss in 2023. However, the company also reported a 7% increase in net revenue to $2.1 billion in 2024. This growth was driven by its online casino segment, where revenue increased by 13% to $1.48 billion.
The financial struggles leading to this restructuring are noteworthy, given BetMGM's past ambitions. The company had previously stated that it aimed to secure a 20-25% share in the U.S. online gambling market.
But it has only a 14% market share, trailing primary competitors DraftKings and FanDuel. Despite this, BetMGM has made inroads in key markets, as CEO Adam Greenblatt led an effort to increase the company's online sports betting handle share in five key U.S. states, with a two-percentage-point improvement from Q3 to Q4 of 2024.
MGM Acquisition of BetMGM Still Open
In addition to the restructuring and job cuts, there is also speculation regarding BetMGM's ownership structure. Bloomberg Intelligence analysts have recently commented that MGM Resorts could attempt to purchase Entain's 50% stake in the joint venture.
The speculation follows Entain's change in leadership after CEO Gavin Isaacs departed the company in February. Analysts suggest the leadership vacuum may pave the way for MGM Resorts to acquire full control of BetMGM, valuing Entain's interest in the range of $4.2 billion to $5.6 billion.
If MGM Resorts were to pursue complete ownership of BetMGM, it would radically alter the company's strategy. With growing competition in the U.S. online gambling space, full ownership of BetMGM might allow MGM Resorts to consolidate operations and better position itself versus competitors.
