Adam Greenblatt Chief Executive Officer of BetMGM

BETMGM FIRST HALF 2024 UPDATE

Published

4 months ago

July 30, 2024

BetMGM, LLC one of the leading sports betting and iGaming operators across the U.S., jointly owned by MGM Resorts International and Entain plc, is providing an update on First Half 2024 (“1H 2024”) performance.

Adam Greenblatt, Chief Executive Officer of BetMGM, commented:
“The first half of this year has been very important in laying the groundwork for BetMGM’s future. 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.

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 maximize 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.”

1H 2024 Update

European Gaming Congress 2024 (Warsaw, Poland)

1H 2024 financial performance demonstrating accelerating momentum through the year
- Net revenue from operations of $1.0 billion, up 6% versus prior year^1,2
  - 2Q net revenue growth of 9% YoY, up from 3% in 1Q
  - 2Q online sports betting NGR per active up 16% YoY
  - 2Q iGaming average monthly actives growth of 18% YoY, up from 9% in 1Q, with no new state launches
- EBITDA consistent with expectations of 2024 being an investment year, supporting customer acquisition and enhanced player experience initiatives
  - Encouraging online sportsbook CPAs of FTDs driven by successful Super Bowl campaign
  - 1H EBITDA of –$123 million²
Established as a leading operator in North America, live in 29 markets with access to 52% of adult population³
- Continued geographic footprint expansion, with BetMGM launch of digital sports betting in North Carolina in March and district-wide in the District of Columbia in July
- 13% GGR market share in the U.S. and Ontario across Sports Betting and iGaming⁴
- Demonstrates stabilization and continued strength in iGaming with approximately 22% market share⁵
Continued focus on operational execution, delivering improved app, product capabilities, and market-leading partnerships across both digital sports and iGaming
- Enhanced Sports Product and Technology
  - Further integration of Angstrom capabilities with new markets and features for MLB and back end of NBA seasons, provided by fully in-house single game parlay (“SGP”) and SGP+ products
  - Improved player experiences with enhanced betting and SGP+ journeys, landing pages and new features including live bet tracking
    - Actives who placed an MLB SGP bet this season up 40% YoY⁶
    - Volume of weekly MLB SGP bets doubled versus last year⁶
- Leadership in iGaming
  - Market-leading jackpots – New Jersey jackpot of over $5 million expected to be the largest regulated U.S. online jackpot ever paid
  - Launched exclusive games and innovative reward mechanics with top suppliers, including GameCode and White Hat Gaming
  - Launched BetMGM Arcade, the home for ‘non-traditional’ content including LuckyTap and Crash-style games
- Best-in-Class Marketing Partnerships
  - Integration of partnerships with X, Marriott Bonvoy, and Associated Press
  - Successful Super Bowl campaign with citywide takeover of Las Vegas and iconic commercial featuring Tom Brady, Wayne Gretzky and Vince Vaughn
  - Exclusive ambassadorship with Brian Christopher Slots for all online regulated markets
Ongoing commitment to player safety, prioritizing responsible gambling across our business
- Founding member of the newly established Responsible Online Gaming Association (“ROGA”), which brings together the largest U.S. online sports betting and gaming operators to develop and advance responsible gaming practices
- Expanded the Kindbridge Health program to eight additional jurisdictions, offering self-excluded individuals referrals for problem gambling treatment
- Research and funding support via sponsorship for the International Center for Responsible Gaming
Award recognition, including
- EGR North America’s awards for both Employer and Sports Betting Operator of the Year
- Top 20 for Best Workplaces in New York^TM by Fortune
- Hashtag Sports awards for both Best Sports Betting Partnership (X/Twitter) and Best Communications Strategy

Outlook

As announced on December 4, 2023, BetMGM’s strategic roadmap assigned 2024 as an investment year, supporting enhanced player experiences and improved sportsbook product to drive long-term value for stakeholders
Coupled with an improving sportsbook offering, and building on BetMGM’s iGaming strength which already delivers over $400 million contribution annually, expectation of greater than planned marketing investment in iGaming in 2H this year⁷
Additional investment expected to be funded by bank debt
Consistent with expectation of 2024 as an investment year, expect 2H EBITDA to be similar to 1H
Pipeline of exciting opportunities ahead including key milestones:
- On track for Angstrom capabilities to be fully integrated across MLB, NBA and NFL offerings ahead of 2024 NFL season
- Single Account Single Wallet (SASW) rollout expected to be completed with Nevada in place prior to the 2024 NFL season
  - Enabling BetMGM customers in MGM Resorts properties, representing 13 million room nights annually, to sign up at one of BetMGM’s eight retail sportsbooks and return to their home state with the same wallet
  - Completing the integration of player wallets across all BetMGM markets and empowering the final Las Vegas unlock for BetMGM
Investment in our execution roadmap, accelerating momentum and opportunities ahead all support our confidence in BetMGM’s pathway to $500 million EBITDA in the coming years

Related Topics:Adam Greenblatt Chief Executive Officer of BetMGM BetMGM Entain latest-news Press Releases

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Adam Greenblatt Chief Executive Officer of BetMGM

MGM Resorts International and Entain Announce BetMGM Investor Day Highlights

Published

4 years ago

April 26, 2021

GamingAmericas.com

BetMGM, LLC, one of the leading sports betting and iGaming operators in the U.S., jointly owned by MGM Resorts International and Entain plc, is providing a business update setting out the key drivers of its strong momentum and future expectations as it delivers a market leading position in the U.S.

As part of the investor day, BetMGM announces the following:

BetMGM is the number one market leader across the U.S. in iGaming with a market share of 23% over the three months ended February 2021, and is on course to take the number two spot in U.S. sports betting and iGaming overall
Sports betting & iGaming continues to accelerate across North America. As such, BetMGM now expects the total long-term addressable market in the U.S. and Canada to be approximately $32 billion
With continued strong momentum in its business, BetMGM now expects that, as a leading operator, it will drive long-term market share of approximately 20% – 25% in the U.S.
BetMGM expects to achieve $1 billion of net revenue from operations in 2022
The investment by MGM Resorts and Entain this year is expected to be approximately $450 million, incremental to the $210 million already invested until the end of 2020

Further details will be presented at the investor day event.

“BetMGM has demonstrated strong momentum, building a leading position in iGaming and on track to be the number two operator across sports betting and iGaming in the U.S.,” said Adam Greenblatt, Chief Executive Officer of BetMGM. “The U.S. market is shaping up to be even larger and more exciting than we originally envisaged, and we now believe it will be worth $32 billion, including Canada. Furthermore, the outstanding progress that the team has made so far means that we now expect to achieve 20-25% U.S. market share long term. The unique partnership of MGM Resorts’ leading brand and loyal customer base and Entain’s proprietary technology platform gives us the best resources to win in this market.”