BetMGM Forecasts 2023 Earnings to Hit $2 Billion, Eyes Profitability

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BetMGM, the prominent online casino and sportsbook operator, announced with confidence that its revenue for 2023 will touch the upper echelon of its projected range between $1.8 billion and $2 billion. The company also restated its anticipation of profitability during the latter half of the year, signifying a pivotal shift in its financial trajectory.

Operating at the heart of the online betting sphere, BetMGM stands as a testament to successful joint ventures, with MGM Resorts International and Entain Plc each owning a 50% stake. The company’s dynamic presence extends across 28 jurisdictions with 38 North American retail sportsbooks securing its dominance in the market.

Chief Executive Officer Adam Greenblatt conveyed the company’s robust financial upturn to analysts in a Monday conference, highlighting a stellar increase in EBITDA of over $300 million. “We have significantly improved our financial position and have achieved EBITDA profitability in the second half,” Greenblatt said, emphasizing the forward momentum that positions BetMGM to be self-reliant financially.

The online gaming unit, having been bolstered by substantial investments totaling $1.26 billion to date from Entain and MGM—including a consistent infusion of capital, with $150 million just this year—now celebrates its march toward self-sustainability.

Greenblatt further projected that by 2026, the company expects to reach a remarkable milestone with $500 million in EBITDA, placing it in a strong competitive stance against online sportsbook titans like DraftKings and FanDuel. The latter entities have been reaping substantial financial successes, with FanDuel maintaining profitability throughout the year and DraftKings eyeing a positive EBITDA horizon in 2024.

CFO Gary Deutsch reinforced the company’s success, spotlighting the significant growth in iGaming—a vertical particularly beneficial for operators due to higher margins and the potential for regional expansion. “We’ve seen our NGR margin in iGaming expand,” Deutsch noted, attributing this to optimized bonus strategies and the acquisition of more recreational players who show a preference for slots. These players, he elaborated, engage in higher margin casino activities.

In a competitive sphere intensified by the introduction of businesses like Fanatics and ESPN Bet, BetMGM doesn’t shy away from innovation. Greenblatt stressed the importance of enhancing user experience, “We continue to invest in making our app more intuitive,” he said, outlining improvements like event page redesigns for more straightforward navigation and the addition of new payment methods to streamline transactions. This initiative has resulted in over 70% of BetMGM’s withdrawals being processed through swift channels such as Visa, Venmo, and Apple Pay.

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