BetMGM has highlighted a strong first half of 2024 with net revenue from operations reaching $1bn.
Reflecting on the financials, Adam Greenblatt, the CEO of the operator jointly owned by Entain and MGM Resorts International, stated that the results were significant in “laying the groundwork for BetMGM’s future” and that higher year-over-year revenue growth could occur now in the second half of this year and into 2025.
Accelerating momentum
Publishing its H1 results, BetMGM reported that its net revenue from operations rose by 6% year-over-year to $1bn, which the operator says demonstrates “accelerating momentum through the year”.
Across Q2, net revenue increased by 9% compared to the same period last year and up from 3% in the first quarter.
Per vertical, Q2 igaming average monthly actives grew by 18% YoY despite no new state launches, up from 9% in Q1. For online sports betting, NGR per active was up 16% YoY.
BetMGM described EBITDA for the first half of the year as “consistent” with its expectations of 2024 being an investment year, “supporting customer acquisition and enhanced player experience initiatives”.
“The first half of this year has been very important in laying the groundwork for BetMGM’s future.”
BetMGM CEO Adam Greenblatt
H1 EBITDA stood at minus $123m, but the operator did note that there were “encouraging online sportsbook CPAs of FTDs driven by a successful Super Bowl campaign”.
“The first half of this year has been very important in laying the groundwork for BetMGM’s future,” commented Greenblatt.
“2024 is a year of investment, focusing on improving our customer experience and stepping up our level of investment in players. We are encouraged to see this strategy delivering accelerating momentum.
“We have exceeded our goals for both acquisition and retention, which should lead to higher year-over-year revenue growth for the second half of this year into 2025.”
Product performance
During the first half of the year, BetMGM continued to expand its operations with the launch of online sports betting in North Carolina in March and going district-wide in the District of Columbia in July. The operator is now live across 29 markets in North America – five for igaming and online sports betting and 24 for sports betting only.
BetMGM added that across the US and the Canadian province of Ontario, it has a 13% GGR market share in sports betting and igaming. Focusing on igaming, the operator stated that its market share is approximately 22%, demonstrating “stabilisation and continued strength”.
Across the financial period, BetMGM has spotlighted its igaming achievements, enhancements in sports product and technology, as well as its marketing partnerships.
In igaming, a jackpot of over $5m was paid in New Jersey, which the operator says is the “largest regulated US online jackpot ever paid”.
Several launches also took place, including exclusive games and reward mechanics with suppliers such as GameCode and White Hat Gaming, as well as BetMGM Arcade – a ‘non-traditional’ content platform for game types such as LuckyTap and crash-style games.
“Our igaming business continues to perform strongly with attractive returns, and to maximise this strength and momentum, we plan to deploy additional marketing in the back half of this year.”
BetMGM CEO Adam Greenblatt
In sports product and technology, Angstrom’s capabilities were further integrated into BetMGM with new markets and features for MLB and the back end of NBA seasons, provided by fully in-house single-game parlay (SGP) and SGP+ products.
Player experiences were also improved with enhanced betting and SGP+ journeys, landing pages and new features including live bet tracking. As a result, the operator noted that there was a 40% YoY increase in actives who placed an MLB SGP bet this season, while the volume of weekly MLB SGP bets doubled when compared to the previous year.
As for marketing partnerships, BetMGM noted that it has integrated partnerships with X, Marriott Bonvoy and the Associated Press, as well as secured an exclusive ambassadorship with Brian Christopher Slots for all online regulated markets.
The operator also highlighted its Super Bowl campaign which involved a citywide takeover of Las Vegas and a commercial featuring Tom Brady, Wayne Gretzky and Vince Vaughn.
BetMGM also brought attention to its responsible gambling and player safety efforts in H1, in which it became a founding member of the Responsible Online Gaming Association.
In addition, the operator expanded the Kindbridge Health programme – offering self-excluded individuals referrals for problem gambling treatment – to eight additional jurisdictions and provided research and funding support to the International Center for Responsible Gaming via a sponsorship.
Greenblatt said: “Our online sportsbook players have been enjoying Angstrom-enabled product capabilities since the start of the baseball season, and we look forward to players enjoying this across our wider sports offering leading into the NFL season.
“We are also very excited to bring our unique omnichannel opportunities to players by fully leveraging MGM Resorts’ presence in Las Vegas. Single Account Single Wallet will be an important driver of the customer experience, with Nevada marking its completion ahead of the NFL season.
“Our igaming business continues to perform strongly with attractive returns, and to maximise this strength and momentum, we plan to deploy additional marketing in the back half of this year. Our execution roadmap, building momentum and prospects ahead all support our confidence in BetMGM’s strong future.”
2024 outlook
Following its performance in H1, BetMGM has reiterated its commitment made at the end of last year to 2024 being an investment year, stating that there is an “expectation of greater than planned marketing investment in igaming” in H2, with additional investment “expected to be funded by bank debt”.
With this in mind, the operator expects H2 EBITDA to be “similar to H1”.
Elsewhere, BetMGM noted that it is “on track for Angstrom capabilities to be fully integrated across MLB, NBA and NFL offerings ahead of 2024 NFL season”, while the Single Account Single Wallet rollout is “expected to be completed with Nevada in place” before the new NFL season as well.
BetMGM stated: “Investment in our execution roadmap, accelerating momentum and opportunities ahead all support our confidence in BetMGM’s pathway to $500m EBITDA in the coming years.”