MGM Resorts released its full-year and fourth-quarter results on Tuesday and shared that BetMGM achieved profitability in the second half of the year.
“Our Las Vegas Strip Resorts and MGM China set new all-time records for full year and fourth quarter Adjusted Property EBITDAR,” said Bill Hornbuckle, CEO and president of MGM Resorts.
The BetMGM operator reported a 22% increase in Q4 consolidated net revenues of $4.4 billion. The company cited an increase in revenue at MGM China after removing COVID-19 related entry restrictions in Macau and to the Las Vegas Strip Resorts’ performance during the Formula 1 Las Vegas Grand Prix in November.
Consolidated net revenues for the full year 2023 hit $16.2 billion, an increase of 23% compared to the $13.1 billion generated in 2022.
Sports betting business
BetMGM met its annual targets, reaching the upper limit of its net revenue from operations guidance of $1.8 billion to $2 billion. It also reported positive EBITDA in the final two quarters of the year, with the third quarter marking its first quarter of profitability. The company is setting a target for $500 million in EBITDA by 2026.
The company’s slide deck presentation used during the call listed 100% ownership of BetMGM as a long-term strategic direction for digital growth, as speculations of not if but when MGM Resorts would acquire the rest of the sportsbook’s ownership from gambling giant Entain which owns 50%. Hornbuckle ruled out making an acquisition bid though, and said the company would focus on making improvements to the online sportsbook since “our product over the last 18 months wasn’t where it needed to be”
BetMGM is now live in 28 markets and will soon be live in 29 with North Carolina sports betting right around the corner. It is still third in market share behind FanDuel and DraftKings.
Hornbuckle noted that the online sports betting site lost some market share compared to the 18% it held in Q3 2023.
The big boss wasn’t too concerned about this drop in market share though, and is satisfied with how BetMGM is performing overall.
“When I think about BetMGM, the original goal five years ago was to get into the top three because we thought it mattered and we have,” he said.
The BetMGM team will provide a comprehensive business update next month.
