BetMGM net gaming revenue increases fivefold in 2021

BetMGM’s net gaming revenue (NGR) rose by five times in 2021 to $850m, according to parent company Entain’s latest financial report.

Delivering an update on its US-facing joint venture business, Entain suggested it had established itself as the number two operator for sports betting and igaming in the US, with a 23% Q4 market share in both markets.

In respect of just igaming, BetMGM’s share of the market is, according to Entain estimates, 29% during Q4 over its 21 markets, reaching more than 37% of the US population.

BetMGM achieved a market share of 18% in respect of sports betting on a standalone basis.

The market share increases fall within BetMGM’s stated objective of achieving a market share of between 20% and 25% over the long term, growth which it hopes will spur a challenge to the top performing US brand, FanDuel.

Entain has stated it has a “clear ambition” to become the number one brand in the US, where it operates, and it is understood the BetMGM brand will launch in Illinois later this month, as well as the highly-coveted Ontario market when it goes live on April 4.

“The unique range of bespoke and exclusive products provided through the Entain platform differentiate BetMGM’s offer, provides a competitive advantage, and supports growth with over 70% of BetMGM customers engaging with these exclusive products,” Entain said.

“BetMGM also benefits from MGM Resorts omni-channel presence and loyalty program, with around 14% of new sign-ups having a pre-existing relationship through one of these channels,” the firm added.

BetMGM is live with 11 retail, 15 online sports betting and four igaming markets, and has launched its horse racing product in three further markets. The US sportsbook operator suggested it had grown its leadership position “rapidly” while also maintaining discipline in its financials.

“Costs per acquisition were in line with forecasts which reaffirms our expectation of achieving a long-term cost per acquisition of $250,” Entain said.

Entain has expressed it anticipates an NGR of $1.3bn for BetMGM in 2022 and expects to reach positive EBITDA in 2023.

Entain’s total share of joint venture losses relating to BetMGM amounted to £161.9m in 2021, up £101.3m from 2020 but in line with the operator’s expectations.

“Effective execution of BetMGM’s strategy in the US is key to the group’s growth forecasts,” Entain said.

“Ineffective execution of the strategy may impact the group’s ambition of leadership in the US and opportunities for NGR growth in already regulated states and new states as they regulate,” it added.

At a wider group level, Entain reported revenue of £3.83bn for its 2021 full-year results, which was up almost 8% year on year (YoY) on 2020, with online NGR accounting for £3.1bn of this total.

The FTSE 100 firm revealed NGR climbed 7% (8% in constant currency) to £3.9bn, while online NGR was up 12% (13% in constant currency), the ninth consecutive year of double-digit online NGR growth. Gross profit across the group stood at £2.4bn.

Meanwhile, underlying group EBITDA increased 5% on 2020 to £881.7m. The number of active users leapt by a quarter during the 12-month period.