BetMGM reports strong FY 2023 performance, net revenue hits $1.96 billion – Travel And Tour World

BetMGM, LLC (“BetMGM”), a prominent player in the sports betting and iGaming sectors throughout the United States, and a joint venture between MGM Resorts International (“MGM Resorts”) and Entain plc (“Entain”), is sharing its 2023 fiscal year performance updates today.

For the fiscal year 2023, BetMGM reported a robust financial outcome (based on preliminary results), with operational net revenue seeing a 36% increase year-over-year, reaching $1.96 billion, positioning it at the higher spectrum of the forecasted $1.8-$2.0 billion range. The company also observed a 14% rise in net revenue from digital operations in consistent markets. Improvements were noted across various indicators in both iGaming and Online Sports Betting sectors, including increases in monthly active users, first-time depositors, hold percentages, bonus levels, net gaming revenue per active user, and acquisition costs. The second half of 2023 saw BetMGM achieving EBITDA positivity, with an anticipated full-year EBITDA loss around $67 million.

BetMGM has established itself as a leading force in North America, operating in 28 markets and reaching 49% of the adult population. The year saw the introduction of four new markets: Ohio, Massachusetts, Puerto Rico, and Kentucky, both online and retail in some cases. The company captured a 14% market share in the U.S. for Sports Betting and iGaming and 22% in Ontario. It also secured market access with Charlotte Motor Speedway, looking forward to the launch of a legal sports betting market in North Carolina by March 2024, awaiting regulatory nod.

Further advancements in operations were supported by enhancements in technology, product, and capabilities, setting the stage for future growth. Notable achievements included the smooth rollout of a unified account and wallet system across 21 markets before the 2023 NFL season, enhanced sports betting features, expanded market coverage, and new bet types. Exclusive games and the introduction of the largest progressive jackpots have bolstered its leading position in iGaming.

In a December 4th update, BetMGM outlined its strategic growth plan for 2024, focusing on expanding its sports offerings through Angstrom’s advanced modeling for innovative products, improving the gaming experience with more personalized and exclusive content, increasing marketing and player acquisition efforts, and leveraging its unique omnichannel advantages, especially in Las Vegas. The launch of a new app in January, with single wallet functionality expected later in the year, and partnerships with Las Vegas sports teams and events, such as a major commercial featuring celebrities, underscore its growth strategy. The company reiterates its December 2023 guidance, targeting approximately $500 million in EBITDA by 2026.

Adam Greenblatt, CEO of BetMGM, 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. 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. With this comprehensive roadmap in place, we can focus on driving accelerated player acquisition and retention and strengthening our current market position. This clear strategic direction underpins our confidence in achieving our targets and building long-term, sustainable value for shareholders.” 

BetMGM’s efforts in digital innovation and responsible gaming have not gone unnoticed, winning several awards for its online and casino operations. The company’s commitment to player safety is further exemplified by a five-year extension with the GameSense program and partnerships aimed at promoting responsible gambling.

This overview highlights BetMGM’s performance and strategic initiatives as it continues to navigate the competitive and evolving landscape of the sports betting and iGaming industry.

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