BetMGM

BETMGM FIRST HALF 2023 UPDATE

Published

9 months ago

July 28, 2023

GamingAmericas.com

NET REVENUE FROM OPERATIONS OF $944 MILLION IN FIRST HALF OF 2023¹

POSITIVE EBITDA FOR THE FULL SECOND QUARTER OF 2023²

BetMGM, one of the leading sports betting and iGaming operators in North America, jointly owned by Entain plc and MGM Resorts International, is providing an update on First Half of 2023 (“1H 2023”) performance and outlook for full-year 2023.

Adam Greenblatt, Chief Executive Officer of BetMGM, commented:
“I am pleased with the significant progress we have made during the first half of 2023 as we continue our strong growth and remain on our path to profitability. Our financial guidance for the year remains on track – we expect to deliver $1.8 to $2.0 billion in full year revenue, as well as to be EBITDA positive in the second half of 2023. In fact, we have already achieved positive EBITDA for the full second quarter of this year. Our focus remains on building a sustainable, scalable and returns focused business with leading products that our players enjoy responsibly. We look forward to the remainder of the year, buoyed by ongoing product improvements, tremendous support from our shareholders providing access to new assets and partnerships, and – above all – our extraordinary team at BetMGM.”

BetMGM finished 1H 2023 with strong financial performance
- Net revenue from operations of $944 million, on track to deliver at the upper end of previous guidance range for FY 2023 revenue of $1.8 to $2.0 billion
  - 1H same-state growth of 25% in net revenue from digital operations
- Reached the key milestone of positive EBITDA for 2Q 2023
- Improved same state CPAs by 8% in 1H 2023 year on year
- Bonus optimization and player management program continuing to have significantly positive impact, delivering enhanced GGR to NGR conversion:
  - Sports NGR margin increased by 300 bps in 1H 2023 year on year
  - Digital sports 1H revenue per player up by 65% for players acquired in 2021 or earlier
- Each of the annual cohorts of digital sportsbooks launched from 2019 through 2022 delivered positive Contribution Profit in 2Q³

Remain on track for previously stated guidance of EBITDA positive in the second half of 2023 (“2H 2023”)
- Includes investment in upcoming launches in Kentucky and North Carolina that were not originally planned during 2023
- Expectation that BetMGM will become self-sustaining in 2H 2023, with no additional equity investment expected from MGM Resorts or Entain after the $150 million previously committed for 2023

Established as a leading sports betting and iGaming operator in North America
- Continued geographic footprint expansion in 1H 2023, with new digital sports betting launches in Ohio, Massachusetts, and Puerto Rico
- Live in 26 jurisdictions, including Ontario, with access to approximately 48% of the adult population in the United States⁴
- Market share across iGaming and sports betting of 18%⁵
  - Continued market leadership in iGaming with approximately 27% market share⁶
  - Online sports betting market share of 11%, with 13% share in markets where BetMGM was live on day one⁶

Entain and MGM Resorts contributed new technology, resources, and relationships to accelerate both BetMGM’s product evolution and its access to players
- Entain’s acquisition of pricing and risk specialist Angstrom, announced on July 17^th, will enhance BetMGM’s sports betting offering, particularly in the fast-growing markets of parlay and in-play wagering, and provide players with a greatly improved experience
- In connection with MGM Resorts’ exclusive partnership with Marriott, announced on July 17^th, BetMGM entered into a loyalty marketing agreement with Marriott whereby BetMGM will offer customers extensive opportunities to earn Marriott Bonvoy points while playing with BetMGM, create exclusive games and experiences, and allow customers to exchange BetMGM Rewards points into Marriott Bonvoy points
- Various platform and product enhancements delivered to provide a more exciting and seamless experience. We’re on track with the rollout of Single Account Single Wallet

Ongoing commitment to player safety, prioritizing responsible gambling across our business
- Five-year extension to GameSense partnership, announced on March 1^st, continues BetMGM’s prominence of responsible gambling messages in its digital and out-of-home marketing campaigns, as well as in its mobile app and retail sportsbooks
  - Through its GameSense partnership, BetMGM provides customers with information about how to bet responsibly, setting limits, dispelling myths, and finding support and assistance
- BetMGM awarded one of the Responsible Gambling Council’s top accreditations for integration of responsible gambling and player protection into platforms and operations

Award recognition including
- Casino Operator of the Year by EGR North America (second year in a row)
- Casino Operator of the Year at SBC Awards North America (third year in a row)
- 2023-2024 Great Place to Work Certification

Notes:
1: 1H 2023 net revenue for BetMGM on a GAAP basis is expected to be approximately $923 million, including approximately $32 million related to Nevada MGM Resorts operations for which BetMGM records on a net basis as BetMGM is considered to be the agent in the Nevada transactions for GAAP purposes.
2: 1H 2023 Revenue and EBITDA figures are unaudited.
3. Contribution Profit for a particular state reflects Net Gaming Revenue minus direct costs (excluding depreciation and amortization and people costs) considered under GAAP presentation of Gross Profit plus marketing acquisition spend.
4: BetMGM operates iGaming and Sports Betting in five markets and Sports Betting in twenty-one markets.
5: Market share for last three months ending April 2023 by GGR including iGaming, retail and online sports betting, and only U.S. markets where BetMGM was active excluding New York; internal estimates used where operator-specific results are unavailable.
6: Market share for last three months ending April 2023 by GGR, including only U.S. markets where BetMGM was active and excluding New York in online sports; internal estimates used where operator-specific results are unavailable.

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BetMGM

Play’n GO announces expansion of BetMGM partnership with Pennsylvania launch

Published

2 weeks ago

April 18, 2024

GamingAmericas.com

play’n-go-announces-expansion-of-betmgm-partnership-with-pennsylvania-launch

Swedish gaming giants’ games now live with leading US operator in Michigan, West Virginia, New Jersey, and the Keystone State

Play’n GO, the world’s leading casino entertainment provider, has today announced further expansion of its partnership with leading US operator BetMGM,with the Swedish gaming giant’s content now available with the group in Pennsylvania.

Play’n GO and BetMGM’s US partnership has already proven stunningly successful in Michigan, New Jersey, and West Virginia, and this expansion sees the partnership extend to a fourth US state. Having secured its Pennsylvanian gaming license in March, Play’n GO is now live with two operators in this key state. BetMGM players in Pennsylvania now have access to classic Play’n GO titles, such as Reactoonz.

Play’n GO is now licensed in six US states and is aiming to be active in every regulated market, in the US and around the world.

Magnus Olsson, Chief Commercial Officer at Play’n GO said: “We’re pleased to expand our partnership with BetMGM into a fourth US state, and look forward to continued success together. We have always been committed to a safe, regulation-led industry to secure a sustainable future for us all. BetMGM share our vision, and so are a perfect partner for us. We will continue our mission of being active in every regulated market around the world, and we’re excited for further growth opportunities well into the future, in the US and beyond.”

BetMGM

BetMGM Partners with GameCode

Published

2 weeks ago

April 16, 2024

GamingAmericas.com

BetMGM has announced a partnership with GameCode, a distinguished iGaming company focused on the North American market. The partnership includes the launch of Boom Boom Boom, HammerCash, Gold Gold Gold and Super3 series which are now live at BetMGM in Michigan and New Jersey through direct integration. BetMGM plans to offer GameCode’s full portfolio of games in all jurisdictions where the operator’s iGaming platform is live pending regulatory approvals.

GameCode’s portfolio of slot titles are built on innovative and one-of-a-kind mechanics. They develop a deep understanding of players’ tastes, and it enables them to develop games that deliver a unique and immersive experience. The initial lineup of titles includes Gold Gold Gold Miners Way, Gold Gold Gold Lions Way, HammerCash, CashPile, Triplestones, and the top performing Boom Boom Boom. Boom Boom Boom is an American-themed 5-reel, 3-row video slot featuring Wild Multipliers and the hold and respin feature on multiple reel sets.

“Boom Boom Boom and other GameCode titles have already proven to be strong performers in their first few weeks of launch at BetMGM. Our mission is to always innovate with in-house, exclusive content with Entain and partners like GameCode to provide our players with an iGaming experience that rises above the rest. This will continue to position us as a destination for players and first choice for suppliers of premium content,” Oliver Bartlett, Vice President of Gaming Product & Content at BetMGM, said.

“At GameCode, we focus on creating good games rather than disposable online gaming content. With experience gained in North American land-based casino, we provide a unique understanding of the market and player needs. We aim to make an impact with each title we release and so far we do so. We innovate at a pace that is difficult to catch up with, providing something new every time we launch a title that players have not seen before. So far, in the states we are live, GameCode’s titles are at the top of the rankings. More is coming,” Matt Hanski, Chief Executive Officer at GameCode, said.

“I’m excited to announce our launch with BetMGM, introducing advanced online slot games powered by our robust in-house technology. These games are hosted on our state-of-the-art Remote Gaming Server (RGS) which is the backbone of its performance and security. It is a long-term play to develop and maintain a RGS that is designed with multiple layers of protection, ensuring the highest standard of data security and integrity in compliance with U.S. regulations. This launch is a testament to our dedication to providing secure, reliable, and immersive gaming experiences,” Wojciech Ziniewicz, Chief Technology Officer at GameCode, said.

Adam Greenblatt

Prove Identity Partners with BetMGM

Published

4 weeks ago

April 4, 2024

GamingAmericas.com

Prove Identity Inc., the global leader in digital identity, announced a strategic partnership with BetMGM, a sports betting and iGaming leader, to enhance the security and user experience for BetMGM customers through the cutting-edge Prove Pre-Fill identity solution.

Prove Pre-Fill accelerates digital consumer onboarding by up to 79% and is used by more than 1000 businesses globally across diversified industries, including 9 of the top 10 banks. This collaboration marks a significant milestone in Prove’s journey toward providing seamless and secure digital sports betting and casino services in the U.S. states where BetMGM operates, pending regulatory approval.

“BetMGM is an innovator in the space, always looking to find new and compelling ways to improve the online gaming experience. Prove Pre-Fill is the latest example of that and allows customers to get access to the content they desire faster than ever before through the identity verification process, enabling them to take full advantage of BetMGM’s vast product offerings,” Tom Hill, Director of Digital Identity and Head of Sports Betting and iGaming at Prove, said.

“We’re committed to providing customers with a seamless and secure sports betting experience, and our partnership with Prove is a testament to that safe bet. Prove Pre-Fill adds an extra layer of security, reduces sign-up abandonment, and improves the overall user experience by streamlining the identity verification and authentication processes. Users can now enjoy the BetMGM sports betting and casino experience faster and with greater peace of mind,” Adam Greenblatt, CEO of BetMGM, said.

Key Highlights of the Partnership:

Streamlining User Onboarding: Prove Pre-Fill technology will revolutionize the onboarding process for BetMGM users, minimizing sign-up abandonment rates. By simplifying and expediting account creation, BetMGM aims to provide a frictionless experience from the start.
Preventing Bonus and Promotion Abuse: Prove’s solutions will be crucial in preventing rampant bonus and promotion abuse – for example, using the same bonus code multiple times normally intended for only first-time users – within the BetMGM digital sports betting and casino platforms. This ensures a fair and secure user environment, fostering a trustworthy and enjoyable gaming experience.