The part-owner of one of America’s largest legal sports betting operators continues to grow.
MGM Resorts, which owns 50% of the BetMGM sportsbook, generated $3.9 billion in revenue in Q1 2023 — a 36% increase year-over-year. The gaming and hospitality company, which co-owns BetMGM with sports betting company Entain, reported an operating income of $731 million during the quarter compared to $106 million in Q1 2022. MGM attributed the results in Q1 2023 to the acquisition of the casino and resort operations of The Cosmopolitan of Las Vegas.
In May 2022, MGM purchased The Cosmopolitan in a deal valued at roughly $1.65 billion.
As a co-owner of one of the top online betting sites in the U.S., MGM reported a net income of $467 million in Q1 2023 compared to a net loss of $18 million for the same period last year.
The company’s BetMGM business, which has access to 21 states, had an operating loss of $81.8 million during the quarter — an improvement from a loss of $91.9 million in Q1 2022.
BetMGM’s ability to shorten losses comes after the sports betting platform generated $1.4 billion in revenue in FY2022. As a result of the growth, MGM expects the sportsbook to turn a profit for the first time by Dec. 31, 2023. BetMGM first gained market access in the U.S. in 2018.
Since then, BetMGM has made history but has also been shrouded in controversy. In January 2022, the operator opened the BetMGM Sportsbook at State Farm Stadium — the first sportsbook at an NFL venue. The 17,000-square-foot facility also has a concert amphitheater.
In January, BetMGM faced scrutiny after the Ohio Casino Control Commission alleged that the sportsbook provided marketing that lacked proper messaging on responsible gaming. BetMGM, along with DraftKings and Caesars allegedly advertised “risk-free” bets, which violates Ohio law.
Despite the inquiry, BetMGM has taken steps to promote responsible wagering. On March 30, the sportsbook received accreditation from the Responsible Gambling Coalition for its gaming and player protection protocols within its North American operations. BetMGM received the accreditation following an evaluation process, which included a review of staff training and procedures. BetMGM joined DraftKings, FanDuel, and PointsBet, as members of the RGC.
