A major online sports betting operator is continuing to solidify its market position.
BetMGM — a 50/50 joint venture between Entain and MGM Resorts — provided a business update on Monday as the sportsbook inches toward the end of the fiscal year. BetMGM, which launched initial U.S. operations in 2019, is now live in 23 jurisdictions across North America. The sportsbook’s reach gives it a 17% market share in the U.S. making it a top three betting operator. BetMGM will continue to expand with North Carolina going live with wagering in 2024.
The ongoing development of BetMGM’s market share has led to strong annual revenue growth.
BetMGM reported $846 million in net gaming revenue in FY2021 and improved results the next fiscal year with $1.4 billion in revenue. It projects gaming revenue in FY2023 to be at least $1.9 billion — a compound annual growth rate of 125% compared to 2020’s $171 million in revenue.
BetMGM’s estimated revenue for FY2023 is bolstered by the addition of new sports betting markets, including Ohio, Massachusetts, and Kentucky. The sportsbook plans to continue its expansion and ability to drive profits by investing in its gaming products and customers.
Long-term planning
BetMGM, which expects roughly $500 million in adjusted earning before interest, taxes, depreciation, and amortization in 2026, vows to enhance its parlay offerings while adding personalized experiences, and betting engagement tools. The sportsbook is also planning investments in player acquisition by leveraging its partnerships.
BetMGM will also benefit from an influx of sporting events in Las Vegas. MGM Resorts has seen more than four million people visit its Las Vegas properties over the last 12 months. The entertainment giant expects those figures to increase in 2024 with Super Bowl LVIII being held at Allegiant Stadium and the annual Formula 1 Las Vegas Grand Prix. MGM Resorts and Las Vegas will also benefit from the addition of an MLB franchise sometime in the next four years.
As of Dec. 4, BetMGM ranks behind FanDuel and DraftKings in terms of operator market share.
