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BETMGM FY23 UPDATE: FY23 NET REVENUE FROM OPERATIONS OF $1.96 BILLION AT TOP END OF GUIDANCE

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BetMGM, LLC (“BetMGM”), one of the leading sports betting and iGaming operators across the U.S., jointly owned by MGM Resorts International (NYSE: MGM) (“MGM Resorts”) and Entain plc (LSE: ENT) (“Entain”) is today providing an update on performance for FY 2023.

  • BetMGM delivered a strong FY 2023 financial performance (based on unaudited results)
    • Net revenue from operations grew 36% year over year to $1.96 billion1, at the upper-end of $1.8-$2.0 billion guidance range2
      • Same-state growth in net revenue from digital operations of 14%
      • Key metrics across both iGaming and Online Sports Betting improved year over year, including average monthly actives, FTDs, hold percentages, bonus levels, NGR per active, and CPAs3
    • EBITDA positive in the second half of 2023 with expected FY 2023 EBITDA loss of approximately $67 million4
  • Established as a leading operator across North America, live in 28 markets with access to 49% of adult population5
    • Four new markets launched during the year: Ohio (online and retail), Massachusetts (online and retail), Puerto Rico (online) and Kentucky (online and retail)
    • 14% market share in Sports Betting and iGaming in the U.S. and 22% in Ontario6
    • Secured market access with Charlotte Motor Speedway ahead of expected March 2024 launch of newly legalised sports betting market in North Carolina, pending regulatory approval
  • Further operational progress supported by technology, product and capability enhancements, positions BetMGM to drive growth going forward
    • Seamless execution of single account single wallet across 21 markets ahead of the 2023 NFL season
    • Enhanced sports betting experience with improved speed7, broader market coverage and new differentiated bet types
    • New in-house and exclusive games, including Dual Play Roulette, as well as largest progressive jackpots underpinning market leading iGaming offering
  • December 4th BetMGM business update set out strategic roadmap to drive growth in 2024
    • Expanding the depth and breadth of our sports offering by leveraging Angstrom’s sophisticated modelling to support innovative and original products, including player-popular Same Game Parlay (“SGP”), SGP+ and new LIVE SGP products
    • Continue to deliver market-leading and engaging gaming experiences that are more personalized and differentiated, including exclusive and MGM-branded content
    • Increasingly investing in marketing and player acquisition as sports product and player retention continue to improve
    • Unlocking BetMGM’s unique omnichannel advantages, particularly in Las Vegas, Nevada
      • Launched new improved app in January with single wallet functionality expected later in 2024
      • Leveraging Las Vegas sports teams and tentpole events, for example BetMGM’s first Big Game commercial featuring Tom Brady, Wayne Gretzky and Vince Vaughn
  • Reiterating guidance from December 2023 business update of targeting approximately $500 million of EBITDA in 2026
  • Recognized as Digital Operator of the Year by Global Gaming Awards, Online Casino of the Year by American Gambling Awards, and Casino Operator of the Year by EGR North America and SBC Awards North America.
  • Ongoing commitment to industry leadership in player safety and responsible gaming
    • Secured five-year extension with GameSense program, providing player tools and capabilities to play responsibly
    • Partnered with nine NFL teams to promote responsible gambling in stadiums during games
    • Piloted the first of its kind program with Kindbridge Health to evaluate efficacy of offering self-excluded individuals’ referrals for problem gambling treatments

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.”

Notes

(1)

FY2023 net revenue for BetMGM on a GAAP basis is expected to be approximately $1,920 million, which includes approximately $64 million related to Nevada MGM 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)

FY2023 non-GAAP net revenue guidance established in January 2023

(3)

Key metrics include average monthly actives, first time depositors (“FTDs”), hold percentages, bonus levels, net gaming revenue per active (“NGR per active”), and cost per acquisition (“CPAs”)

(4)

BetMGM has not completed its financial closing procedures for the three months and year ended December 31, 2023 and actual results can differ materially from these estimates.  In addition, BetMGM’s independent registered public accounting firm has not audited, reviewed or performed any procedures with respect to these preliminary estimates. During the course of the preparation of BetMGM’s audited financial statements, BetMGM and its auditors may identify items that would require material adjustments to these estimates. As a result, these estimates constitute forward-looking statements and, therefore, investors are cautioned that they are subject to risks and uncertainties, including possible adjustments. 

(5)

BetMGM operates iGaming and Online Sports Betting in five markets and Sports Betting only (combined online and retail) in 23 markets.

(6)

Market share for last three months ending November 2023 by GGR including only U.S. markets where BetMGM was active; internal estimates used where operator-specific results are unavailable. Ontario market share reflects the three-month period through December 2023.

(7)

 Google Core Web Vitals validate that BetMGM in now one of the fastest apps in the U.S.

 

Forward-looking statements:

This document contains certain statements that are forward-looking statements. They appear in a number of places throughout this document and include statements regarding our intentions, beliefs or current expectations and those of our officers, directors and employees concerning, amongst other things, results of our operations, financial condition, liquidity, prospects, growth, strategies and the business we operate. Examples of these statements include, but are not limited to, BetMGM’s expectations regarding its financial outlook (including EBITDA guidance). These forward-looking statements include all matters that are not historical facts. By their nature, these statements involve risks and uncertainties since future events and circumstances can cause results and developments to differ materially from those anticipated. Any such forward-looking statements reflect knowledge and information available at the date of preparation of this document. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include the significant competition within the gaming and entertainment industry; BetMGM’s ability to execute on its business plan; changes in applicable laws or regulations, particularly with respect to iGaming and online sports betting; BetMGM’s ability to manage growth and access the capital needed to support its growth plans; and BetMGM’s ability to obtain the required licenses, permits and other approvals necessary to grow in existing and new jurisdictions. In providing forward-looking statements, Entain is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law. Other than in accordance with its legal or regulatory obligations (including under the Market Abuse Regulation (596/2014), the Listing Rules, the Disclosure Guidance and Transparency Rules and the Prospectus Rules), Entain undertakes no obligation to update or revise any such forward-looking statements. Nothing in this document should be construed as a profit forecast. Entain and its directors accept no liability to third parties in respect of this document save as would arise under English law.

Non-GAAP Financial Information:

This press release includes net revenue from operations and estimated EBITDA, which have not been prepared in accordance with GAAP. BetMGM believes this presentation, which it uses for its own analysis of operations, is useful in that it reflects the true economic performance of the business. If BetMGM presented net revenue from operations in accordance with GAAP, then BetMGM would present the revenues associated with its Nevada digital and retail sports betting operations different, until such time as BetMGM is licensed as a Nevada gaming operator. Currently under GAAP, its calculation of Net Revenue would be on a basis net of operating costs, such that the GAAP reported Net Revenue would be lower than the Net Revenue reported herein, with Net Income remaining the same.

Alberta

Octoplay secures conditional Alberta iGaming supplier approval from AGLC

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Octoplay has secured conditional licence approval from the Alberta Gaming, Liquor & Cannabis Commission (AGLC), allowing the supplier to begin the process of offering its games catalogue to operators in Alberta.

The company said the approval positions it to launch in Canada’s newest regulated iGaming market when it opens in July. Octoplay is already live in Ontario with BetMGM and PokerStars, and has also entered the US through New Jersey and Michigan, according to the company.

“Alberta is one of the most strategic market openings on our 2026 roadmap. Entering it with the performance data we’ve built in Ontario, New Jersey, and Michigan gives us a strong foundation to be one of the first suppliers to partner with local tier-one operators as soon as the market opens,” says Ralitsa Georgieva, CEO at Octoplay.

“We’ve worked closely with the AGLC throughout the licensing process, and clearing the conditional stage reflects the strength of our compliance infrastructure,” says Martina Borg Stevens, Chief Legal Officer at Octoplay. “Our team has built a process that allows us to enter new regulated jurisdictions efficiently without compromising on the technical standards each regulator requires.”

Octoplay said Alberta adds to its regulated footprint, which it stated includes 17 operational markets: the United Kingdom, New Jersey, Michigan, Ontario, Italy, Spain, Sweden, the Netherlands, Denmark, Belgium, Greece, Romania, Malta, Slovakia, Finland, Brazil, and Georgia.

The post Octoplay secures conditional Alberta iGaming supplier approval from AGLC appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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THNDR appoints former WorldWinner CEO Nancy MacIntyre as strategic advisor

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THNDR has appointed gaming industry veteran Nancy MacIntyre, former CEO of WorldWinner, as a strategic advisor, the company said. MacIntyre will advise THNDR’s leadership team as it works to bring more operators onto its player-vs-player (PvP) skill games network.

MacIntyre has more than 25 years in gaming and digital entertainment. Most recently, she served as CEO of WorldWinner, a competitive skill-gaming platform that developed FanDuel’s skill gaming app, FaceOff. She has also held senior roles at LeapFrog, LucasArts, Atari, and Hasbro.

THNDR positions itself as a white-label skill games layer that operators including sportsbooks, DFS platforms, and lottery apps can integrate to drive engagement and earn revenue per game. The company said it has recorded 160m+ games played, a 99.99% fill rate, and 25+ partners live.

“Nancy didn’t just predict the rise of skill gaming, she led it. At WorldWinner she led efforts to take FanDuel FaceOff mainstream and proved this category works at scale,” said Desiree Dickerson, CEO of THNDR. “As we bring more Tier 1 operators onto our network, that is exactly the expertise we need. Having her in our corner makes everything we build sharper.”

“I have built games on almost every platform that mattered over the last 25 years, and PvP skill gaming is one of the most exciting categories in the market right now,” said Nancy MacIntyre. “THNDR has the team, the technology, and the lead. I am excited to help them turn that into mainstream, must-play games.” THNDR said it plans to share more on its competitive gaming roadmap in the coming months.”

The post THNDR appoints former WorldWinner CEO Nancy MacIntyre as strategic advisor appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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Game Anatomy

Behind the Game Anatomy of a Strong Brand

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At iGaming, dozens of solutions are behind the high conversion, retention, and LTV rates of the product: from UX and payment infrastructure to personalisation and constant hypothesis testing.

Behind the Game is a series of expert materials where N1 Partners team explains how successful iGaming products work from the inside.

In this issue, N1 Partners’ Product Line Manager will tell you how to identify a promising brand at the start, what distinguishes a strong product from an average one, and how to choose offers with maximum potential.

What distinguishes a strong iGaming product from dozens of similar offers in the market today?

Today, many products are focused on the rapid monetisation of the player. A strong product has a different approach: it is built around long-term value, player loyalty, and audience retention. 

Personalisation, usability, and the ability of a product to adapt to the interests of a particular user play a key role. 

Modern analytics and AI tools allow you to predict user behaviour more accurately, offer relevant mechanics, and create a more personalised gaming experience.

UX is equally important. In Tier-1 GEOs, even minor inconveniences can cost a player. If the user has to perform unnecessary actions or encounter an inconvenient interface, the probability that he’ll leave increases significantly.

What early signs show that a product has the potential to become a strong brand?

From the product’s point of view, two metrics are crucial: conversion and retention.

If a product consistently shows good player engagement rates and at the same time keeps the audience at or above market benchmarks, this is a strong signal of its potential.

An additional indicator is the team’s ability to regularly test new hypotheses and implement mechanics that expand the possibilities of interaction with the audience.

Practical criteria are also important for partners: the availability of in-demand payment methods for a specific GEO, high-quality localisation, a strong game library and a convenient user path.

A separate recommendation for affiliate teams is to independently walk the player’s path before launching traffic. This allows you to quickly identify the strengths and weaknesses of the product before scaling.

What is more important for long-term growth: constantly attracting new players or working with the existing base?

One cannot exist without the other.

Attracting new players remains a prerequisite for growth, but without strong retention and working with a loyal base, the product will not be able to show stable results over the long run. That is why the N1 Partners products have a high retention and players’ LTV, those are really crucial metrics to pay attention to.

A high churn leads to a situation where the operator constantly compensates for losses due to new traffic. This model becomes unprofitable both for the product itself and for partners working on RevShare.

That’s why long-term growth is built around retaining players and building a loyal audience that keeps coming back to the product.

What mistakes do new casino projects most often make in the early years of their work?

Many new projects begin to actively increase traffic even before they are convinced of the product effectiveness on test volumes.

Before opening large amounts of traffic, it is important to make sure that all key processes are working correctly: funnels, retention mechanics, payment infrastructure and user path.

Many problems arise due to flaws from the product’s side itself. Errors in payments, incorrect localisation, problems with the availability of functions or an inconvenient interface quickly affect conversion and retention.

For the player, such shortcomings become the reason for leaving even before he has time to get acquainted with the product.

How do you know that a player is returning because of the product itself and not just bonuses or individual games?

One of the key factors is emotional attachment to the product and the level of personalisation.

Bonuses can attract attention, but long-term loyalty is shaped by familiar mechanics, individualised interaction and high-quality communication with the user. This is especially noticeable in the VIP segment, where personal support, attention to the player and long-term relationships are of great importance.

A strong product is always based on treating players as people, not as a set of numbers in reports.

What metrics best show that a product will be successful at a distance?

Among the main indicators:

  • repeated deposits;
  • deposit funnel depth;
  • Retention Rate;
  • Churn Rate;
  • technical stability of the product;
  • key scenarios’ speed.

Special attention is paid to the transitions between deposits and the product’s ability to return players a week, a month or more after the first deposit.

How are the expectations of the players changing in 2026, and what is already considered a mandatory brand standard today?

A mandatory standard is perfect GEO localization, the most user-friendly interface, as well as brand reputation.

Another underestimated factor is the brand’s reputation. Products need to actively work with ORM (Online Reputation Management): monitor the brand’s reputation on feedback (for example, Trustpilot) and third-party sites and respond to comments and questions from players, forming loyalty. 

N1 Partners pays special attention to this: the company systematically works with feedback from partners and players, maintaining the brand’s reputation on thematic websites.

What helps N1 Partners products stay competitive in Tier-1 GEOs?

Constant testing of new mechanics and flexibility in product development remains one of the factors.

N1 Partners team adheres to an approach in which new solutions are first tested under controlled conditions and only implemented on a larger scale after effectiveness confirmation.

Among the mechanics that have shown a good effect are Lucky Spin/LuckyBox, Puzzle Hunt and a number of other gamification solutions aimed at increasing player engagement and retention.

Deep audience segmentation and the development of specialised retention areas for different groups of players also play an important role.

If you had to choose a product for RevShare, which indicators would you look at first?

First of all, it is worth paying attention to:

  • player retention;
  • user path quality;
  • the presence of errors and technical problems;
  • payment infrastructure;
  • the range of games;
  • indicators of repeated deposits.

In the RevShare model, the key is how long a player remains active and how often they return to deposits.

What do partners most often underestimate when choosing a product to drive traffic?

Partners often start scaling a new product too early.

Even with a strong offer and good terms of cooperation, it is crucial to first check the actual performance of the product and only then proceed to scaling.

Another underestimated factor is the brand’s reputation. Before driving traffic to an offer, it is important to check player reviews, ratings on relevant sites, and the general perception of the product on the market.

If you had to launch a new brand from scratch today, which three things would you focus on first?

First of all, attention should be paid to three fundamental elements:

  • a strong payment infrastructure for chosen GEO;
  • a high-quality set of gaming providers and content;
  • technical stability of the product and an optimized user path.

Even minor problems with download speed, payments, or registration can significantly reduce conversion and affect the further growth of the product.

The effectiveness of all subsequent marketing and product initiatives directly depends on the quality of these components.

To summarise, a strong iGaming product begins where the pursuit of short-term results ends. Attention to user experience, audience retention, localisation, and continuous product improvements allows brands to grow from a distance and turn the attracted traffic into long-term value.

If you are looking for brands with high LTV and Reg2Dep, join N1 Partners, a multi-brand affiliate program with 14+ casinos and betting brands in Tier-1 GEO with payouts up to €700 CPA and RevShare up to 55%.

Be number one with N1!

The post Behind the Game Anatomy of a Strong Brand appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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