BetMGM is anticipating a slew of new market entrances, as well as an additional $450m investment, through the current year, following a 2021 which has been said to have surpassed management expectations.
Ahead of what is dubbed a “critical year” in “paving the way for the next phase of the sector’s financial evolution,” Adam Greenblatt, CEO of BetMGM, has praised the sports betting and online casino platform in “executing our plan with purpose, passion and discipline”.
The MGM Resorts and Entain joint venture scored net revenue of $850m during the past year, which it states is “ahead of management expectations and up nearly five times from prior year”.
However, 2021 EBITDA loss is expected to fall into the $420m-$440m boundary, but the pair anticipate reaching positive EBITDA in 2023 based on its current assumption of future live markets.
BetMGM is also reported as achieving a 20 per cent to 25 per cent market share across both aforementioned verticals, in line with its long-term target.
Bill Hornbuckle, CEO and president of MGM Resorts, commented: “BetMGM has made significant progress in gaining a strong foothold in the rapidly growing US sports betting and igaming market, solidifying its position as the number two operator nationwide in 2021.
“These achievements are underpinned by the structural advantages offered through MGM Resorts and Entain as well as a best-in-class team at BetMGM led by Adam.
“As we look to 2022, we are beyond excited about further integrating BetMGM with our MGM loyalty program and land-based operations to elevate the BetMGM player experience.
“We are more confident than ever about BetMGM’s future prospects and remain committed to its continued success.”
Furthermore, BetMGM leadership has also shone a light on the platform’s prospects through the current year, with revenue expected to surpass $1.3bn.
In addition to this, the entity, which is currently live in 19 jurisdictions, four for igaming and 19 as sports betting, has also set its sights on an array of new market entrances during 2022.
Expected online sportsbook launches are expected to occur in Illinois and Louisiana during Q1, with a retail launch in Puerto Rico scheduled for the same time frame. Ontario, which is causing much industry excitement, will see the group aim for an online betting and gaming debut.
Moreover, as a result of “continuing success, strong performance and market leadership,” MGM and Entain’s additional $450m investment will take its total contribution beyond $1.1bn since launch during 2018.
Jette Nygaard-Andersen, CEO of Entain, added: “BetMGM is built on Entain’s best in class technology and capabilities alongside MGM Resorts iconic brand and assets.
“Its fantastic success so far demonstrates that BetMGM has really captured the excitement of customers across the states where it operates.
“BetMGM continues to outpace the market as a result of its unique assets and go to market approach, broad and highly engaging range of in-house products and digital marketing capabilities.
“Given the long-term opportunity and shareholder value potential in winning in this market, we are very happy to support BetMGM in this investment phase of its growth journey, and we are absolutely committed to providing BetMGM with what it takes to win.”