MGM, Entain dedicated to providing BetMGM with tools to succeed

MGM, Entain dedicated to providing BetMGM with tools to succeed

BetMGM anticipates a flood of fresh market entry opportunities, as well as an additional $450 million investment, in the current year, following a 2021 that exceeded management expectations. 

MGM, Entain determined to improve BetMGM

Ahead of what has been deemed a “important year” in terms of “paving the way for the next phase of the sector’s financial evolution,” BetMGM CEO Adam Greenblatt lauded the sports betting and online casino platform for “executing our plan with purpose, passion, and discipline.”

The real-money casino joint venture between MGM Resorts and Entain reported net sales of $850 million last year, which it describes as “beyond management forecasts and nearly five times that of the prior year.” However, the EBITDA loss in 2021 is estimated to be between $420 million and $440 million, although the partnership anticipates reaching positive EBITDA in 2023 based on current market assumptions.

Furthermore, the business, which is now operational in 19 jurisdictions, four for igaming and 19 for sports betting, has set its sights on a slew of fresh market entry opportunities in 2022. Online sportsbook openings are anticipated in Illinois and Louisiana during Q1, followed by a retail debut in Puerto Rico during the same time period. Ontario, which has generated much industry interest, will see the organization attempt its first foray into internet betting and gaming.

Moreover, as a consequence of their “continued success, outstanding profitability, and market leadership,” MGM and Entain’s new $450 million investment will bring their cumulative commitment to more than $1.1 billion since their start in 2018. BetMGM is believed to have achieved a 20% to 25% market share in both of the aforementioned verticals, in line with its long-term goal.

Quotes from the Press Release

“BetMGM has made great progress in establishing a strong presence in the fast developing US sports betting and igaming markets, strengthening its position as the number two operator nationwide in 2021,” said Bill Hornbuckle, CEO and president of MGM Resorts.

“These accomplishments are a result of the structural advantages provided by MGM Resorts and Entain, as well as a best-in-class BetMGM team led by Adam. As we move ahead to 2022, we’re ecstatic about the prospect of further integrating BetMGM with our MGM loyalty program and land-based operations in order to enhance the BetMGM player experience.”

“We are more optimistic about BetMGM’s future prospects than ever before and remain committed to the company’s sustained growth. Furthermore, BetMGM’s leadership has shed light on the platform’s plans for the remainder of the year, with revenue likely to exceed $1.3 billion.”

“BetMGM is built on Entain’s best-in-class technology and capabilities in conjunction with MGM Resorts’ iconic brand and assets,” noted Jette Nygaard-Andersen, CEO of Entain. BetMGM’s phenomenal performance thus far illustrates that the company has successfully captured the excitement of clients across the states in which it operates.”

“BetMGM continues to outperform the market because to its differentiated assets and business model, extensive and highly engaging portfolio of in-house products, and digital marketing capabilities.

“Given the long-term opportunity and potential shareholder value associated with winning in this industry, we are delighted to support BetMGM at this investment phase of its growth journey, and we are fully committed to providing BetMGM with the tools necessary to succeed.”

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About Lou De Aguila

Lou Ramon Aguila is a contributor for Golden Casino News. He has a degree in BSBA Legal Management with great interest in high-profile legal cases involving sports personalities. An ultimate sports junkie, he covers just about everything in the sporting world with an emphasis on the NBA, NFL, and MLB. In his past time, Lou loves to read manga, watch anime and critique pro-wrestling matches.