BetMGM to turn a profit next year
MGM Resorts Internationan and Entain, joint owners of sports betting and iGaming operator BetMGM, said Wednesday they expect to invest another $450 million in BetMGM in 2022. That will bring the combined investment to $1.1 billion since BetMGM was launched in 2018.
Net revenue from operations expected to be approximately $850m, ahead of management expectations and up nearly five times from prior year. Same state growth in net revenue from operations of 140% from prior year. FY 2021 EBITDA loss expected to be in the range of $420m – $440m, in line with expectations.
BetMGM anticipates reaching positive EBITDA in 2023, based on its current assumption of future live markets.
Adam Greenblatt, CEO of BetMGM, commented: “The highly talented team at BetMGM is executing our plan with purpose, passion and discipline, and our results speak for themselves. After only 3 years into our journey, we have cemented the credibility of BetMGM’s leadership ambition in sports betting and iGaming in the U.S. 2022 is a critical year, where the leading national operators will reach critical mass, paving the way for the next phase of the sector’s financial evolution. With the support of our shareholders, our technology and data platform, brand and omni-channel strategy, we look to the future with confidence.”
Jette Nygaard-Andersen, CEO of Entain commented: “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.”
Bill Hornbuckle, CEO & President of MGM Resorts commented: “BetMGM has made significant progress in gaining a strong foothold in the rapidly growing U.S. 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.”