BetMGM achieves positive EBITDA in second half of 2023

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BetMGM CEO Adam Greenblatt has stated that the operator can focus on player acquisition and retention, as well as strengthen its market position, following strong organic growth in 2023.

Jointly owned by MGM Resorts International and Entain, the operator has published a trading update for its FY 2023 financial performance, noting that positive EBITDA was achieved in the second half of the year.

BetMGM revenue almost hits $2bn

BetMGM’s FY23 net revenue from operations has grown by 36 per cent year-over-year to $1.96bn, the upper end of its $1.8bn to $2bn guidance range.

A same-state growth of 14 per cent was also reported in net revenue from digital operations, in addition to key metrics improving YoY across igaming and sports betting including average monthly actives, first-time depositors, hold percentages, bonus levels, NGR per active and cost per acquisition.

BetMGM also stated that it achieved positive EBITDA in the second half of the year, with an expected FY23 EBITDA loss of approximately $67m.

Greenblatt commented: “Our performance in 2023 demonstrates our commitment to delivering on our promises. We were able to achieve strong organic growth while executing against key strategic initiatives that lay the foundation for 2024 and beyond.”

Across North America, BetMGM is now live in 28 markets – five igaming and online sports betting markets and 23 solely sports betting markets – with four market launches in the past year: Ohio, Massachusetts, Puerto Rico and Kentucky.

The operator has a 14 per cent market share in US igaming and sports betting, as well as a 22 per cent market share in Ontario.

In addition, BetMGM could add to this market share in the early portion of 2024 after securing market access in North Carolina with Charlotte Motor Speedway ahead of the state’s expected sports betting market launch in March.

During the year, the operator also noted that it brought its single account single wallet to 21 markets ahead of the 2023 NFL season, enhanced its sports betting offering with speed and differentiated bet types, as well as introduced new in-house and exclusive games such as Dual Play Roulette.

Greenblatt added: “The attainment of EBITDA profitability over the last three quarters of 2023 validates the effectiveness of our business model and provides the basis from which to invest further in expanding our sports offering through the integration of Angstrom and leveraging our largely untapped Las Vegas omni-channel advantages.”

2024 strategic roadmap

In December, BetMGM revealed its strategic roadmap to drive growth in 2024. This roadmap included leveraging Angstrom to improve its sports betting offering, delivering more personalised and differentiated gaming experiences, increasing marketing and player acquisition investment, as well as bringing omnichannel to life, particularly in Las Vegas.

Also, the operator has reiterated its positive adjusted EBITDA projection for 2026 of approximately $500m, as well as its ongoing commitment to player safety and responsible gambling.

In 2023, BetMGM extended its partnership with GameSense, collaborated with nine NFL teams to promote responsible gambling in stadiums, and teamed up with Kindbridge Health for a pilot programme to evaluate the efficacy of offering self-excluded individuals’ referrals for problem gambling treatments.

“With this comprehensive roadmap in place, we can focus on driving accelerated player acquisition and retention and strengthening our current market position,” noted Greenblatt.

“This clear strategic direction underpins our confidence in achieving our targets and building long-term, sustainable value for shareholders.”