Net revenue

Entain’s BetMGM business to top $1 billion in net revenue in 2022

hear updated the market on the performance of its BetMGM joint venture with MGM Resorts International Wednesday, with the operation expecting full-year net revenue to top $1.3 billion in 2022.

Gaming giant FTSE 100 said BetMGM is achieving market share in line with its long-term target of 20% to 25% in the US sports betting and iGaming markets.

It was now the second-largest sports betting and iGaming operator in the markets it operates in, with a 24% market share for the three months to November.

BetMGM remained the market leader in iGaming, Entertain said, with a 30% market share for the three months to November in the markets in which it operates.

The company was live in 19 jurisdictions, including four in iGaming and 19 in sports betting, with the operation expected to reach around 40% of the US adult population, with two more jurisdiction launches as well as launches in Canada and Porto. Rico planned for the coming months.

Looking to 2021, Entain said BetMGM’s net operating income is expected to be around $850 million, above management’s expectations and nearly five times higher than a year earlier.

Same-state operations net revenue growth was estimated at 140% year-on-year, while the company’s 2021 EBITDA loss is expected to be between $420 million and $440 million. dollars, in line with expectations.

The cost per acquisition would be in line with management’s expectations, which Entain said reaffirmed its expectation of achieving a long-term acquisition cost of $250.

Player values, meanwhile, were in line with expectations, supporting a total long-term addressable market opportunity in North America of approximately $32 billion.

BetMGM expected 2022 net revenue from operations to exceed $1.3 billion, with continued growth supported by investments in additional markets and product rollouts.

Entain said the company plans to launch online sportsbooks in Illinois and Louisiana in the first quarter, as well as retail sportsbooks in the U.S. territory of Puerto Rico and both online sportsbooks and iGaming in the Canadian province of Ontario later this year.

It was also expanding its first bingo product into the market and the BetMGM Racing app in other states, while continuing to improve its products in existing markets.

The company said it would continue to use its returns-focused marketing strategy, while further integrating the MGM Resorts loyalty program into “every aspect” of its offering, while maintaining its “market-leading” customer service. and “giving priority to responsible gambling” in all areas. facets of the business.

BetMGM expected to achieve positive EBITDA in 2023, based on its current assumption of future live markets.

The company said it had positive contributions in several states, some within a year of launch.

To underpin its “continued success,” investment from venture capital partners Entain and MGM Resorts was expected to be approximately $450 million in 2022, bringing the combined total investment of the two companies to $1.1 billion. dollars since the launch in 2018.

“BetMGM’s highly talented team is executing our plan with determination, passion and discipline, and our results speak for themselves,” said BetMGM chief executive Adam Greenblatt.

“After only three years of our journey, we have cemented the credibility of BetMGM’s leadership ambition in sports betting and iGaming in the United States.

“2022 is a critical year, where major national operators will reach critical mass, paving the way for the next phase of financial evolution in the industry.”

Greenblatt said that with the support of its parent companies, its technology and data platform, its brand and its omnichannel strategy, it looks to the future with confidence.

Jette Nygaard-Andersen, CEO of Entain, added that BetMGM leveraged the company’s “best-in-class” technology and capabilities, alongside the “iconic brand and assets” of MGM Resorts.

“Its fantastic success so far demonstrates that BetMGM has truly captured the enthusiasm of customers across the states where it operates.

“BetMGM continues to lead the market with its unique strengths and approach to the market, its wide and very attractive range of in-house products and its digital marketing capabilities.

“Given the long-term opportunity and potential for shareholder value to win in this market, we are very pleased to support BetMGM in this investment phase of its growth journey and we are absolutely committed to providing BetMGM with this what it takes to win.”

As of 2:38 p.m. GMT, shares of Entain were up 1.29% at 1,729 pence, while MGM Resorts was down 0.01% at $43.83 at 9:53 a.m. EST in New York.