BetMGM, the joint venture between MGM Resorts and Entain, has released a business update for the first half of 2023, reporting $944m in net revenue. This result represents about 47% of the upper end of the company’s full-year revenue prediction of $1.8bn - $2bn.
Barry Gibson, Entain Chairman, exclusively told Gaming America: “I’m delighted that it's making continuing progress. We see ourselves moving into cash positive in terms of profitability for the second half of the year. In fact, for the second quarter, we moved into profitability, which is a really big milestone to get to.
“We are going to become profitable this year, which is a major milestone – and we see ourselves being a number one or two player within the US in the next couple of years or so.”
Adam Greenblatt, CEO of BetMGM agrees the sports betting operator appears to be on track, saying, “I am pleased with the significant progress we have made during the first half of 2023 as we continue our strong growth and remain on our path to profitability.
“Our focus remains on building a sustainable, scalable and returns-focused business with products that our players enjoy responsibly. We look forward to the remainder of the year, buoyed by ongoing product improvements, tremendous support from our shareholders providing access to new assets and partnerships, and – above all – our extraordinary team at BetMGM."
The CEO commented that the company has also achieved positive EBITDA during Q2 of 2023, and that same-state cost per acquisition has improved by an average of 8%.
Other achievements during H1, which will contribute to the goal of a positive EBITDA at the end of 2023 as well, have been: investing in Kentucky and North Carolina sports betting launches and working to become self-sustaining in the second half of the year, with no additional equity investment from parent companies MGM Resorts or Entain.
BetMGM is now live in 26 North American jurisdictions, including Ontario. The brand holds a market share of 11% in sports betting, but accounts for 27% of the iGaming market.
Looking forward to H2 of 2023, Entain acquired US sports data provider, Angstrom Sports, earlier this month; BetMGM entered a loyalty marketing agreement as part of MGM Resorts’ exclusive partnership with Mariott; BetMGM extended its five-year partnership with responsible gambling organization, GameSense; and the company also plans to make platform updates, including the launch of Single Account Single Wallet.
