BetMGM beats expectations to post $1.44bn in net revenue for 2022
Entain and MGM Resorts JV on course to beat most US rivals to profitability by becoming EBITDA positive in the second half of this year
Higher gross gaming margins resulting from improved customer experience were partly behind BetMGM outperforming expectations and delivering $1.44bn in net gaming revenue for full-year 2022.
This amount was ahead of prior guidance of more than $1.3bn given by the MGM Resorts- and Entain-owned North American operator.
While EBITDA losses amounted to approximately $440m – in line with previous guidance – the performance means management expect the business to be EBITDA positive in H2 2023.
As well as higher gross gaming margins, the sports betting and igaming operator revealed same-state CPAs tumbled 21% year on year (YoY) due to data-focused marketing and increased scale.
An improved approach to player bonusing delivered by the data science team was also highlighted as a factor.
Meanwhile, it was announced that there was a 51% YoY jump in same-state net revenue from digital operations and that Q4 online sports betting revenue margin doubled compared with Q4 2021.
BetMGM, which occupies a podium position in US online gambling, said it is “well positioned” to record net revenue of between $1.8bn and $2bn for full-year 2023.
Adam Greenblatt, CEO of BetMGM, commented: “2022 was a year in which we delivered against many key strategic initiatives and achieved several company milestones, including exceeding our financial targets, launching a redesigned BetMGM mobile app and furthering our commitment to responsible gambling.
“With continued and unwavering support from our shareholders, we look to 2023 confident in achieving further key milestones, including $1.8bn to $2bn in net revenue from operations and being EBITDA positive in the second half of 2023.”
MGM Resorts and Entain also announced that the duo will invest a combined $150m into the operation throughout 2023, bringing the total combined investment in BetMGM to around $1.25bn.
Live in 25 jurisdictions and with access to roughly 45% of the adult US population, MGM is the igaming leader in America with a 30% slice of the market. It’s online sports betting share is 13%, the company said.
There were six new market launches in 2022: New York, Louisiana, Illinois, Kansas, Maryland and the Canadian province of Ontario.
BetMGM also rolled out its online sports betting product in Ohio in January 2023 alongside two retail sportsbooks at MGM Northfield Park and the Reds’ Great American Ball Park.