US – BetMGM aiming for revenues of $2bn this yearBy Phil - 27 January 2023
BetMGM has said it is well positioned to achieve net revenue from operations of between $1.8bn and $2bn in FY 2023 and be EBITDA positive in the second half of 2023.
The sports betting operator, now live in 25 jurisdictions with access to approximately 45 per cent of the adult population in the US, finished FY 2022 with a strong financial performance. Net revenue from operations came in at $1.44bn, ahead of prior guidance of over $1.3bn. Same-state growth in net revenue from digital operations of 51 per cent.
The company expanded its online footprint in 2022 with launches in six new markets: New York, Louisiana, Illinois, Ontario, Kansas, and Maryland. It opened four new retail sportsbooks: Nationals Park in Washington, DC, Casino del Mar in Puerto Rico, The Cosmopolitan in Las Vegas, and at State Farm Stadium, the first retail sportsbook at an NFL stadium and home of the 2023 Super Bowl
It launched in Ohio on January 1, 2023, with online sports betting and two retail sportsbooks at MGM Northfield Park and at the Reds’ Great American Ball Park.
Adam Greenblatt, Chief Executive Officer of BetMGM, commented: “The talented team at BetMGM continues to execute our plan with purpose, passion, and discipline. 2022 was a year in which we delivered against many key strategic initiatives and achieved several company milestones, including exceeding our financial targets, launching a redesigned BetMGM mobile app and furthering our commitment to Responsible Gambling. With continued and unwavering support from our shareholders, we look to 2023 confident in achieving further key milestones, including $1.8 to $2bn in net revenue from operations and being EBITDA positive in the second half of 2023.”
BetMGM has established itself as a top three sports betting and iGaming operator in North America with approximately 30 per cent of the market share. It has an online sports betting market share of 13 per cent, with 20 per cent share in markets where BetMGM was live on day one. The company’s Q4 2022 online sports net revenue margin has doubled versus Q4 2021 as it continues to optimise our bonus environment.
Wholly supportive of BetMGM’s stellar performance and with confidence in management’s plan, MGM Resorts and Entain expect to invest a combined additional $150m in FY 2023 This brings the total combined investment to build the company in less than five years to approximately $1.25bn.