BetMGM raises 2020 revenue forecast again on huge engagement increase
M life Rewards program provides high single-digit of overall customer acquisitions as operator claims US-wide market share of 12.5%
BetMGM has again raised its revenue forecast for 2020, with an expected net gaming revenue (NGR) of $175m to $180m as engagement in Q4 doubled from the previous quarter.
The US JV between Entain and MGM Resorts previously estimated NGR for the year would come in at $150m to $160m in October, but CFO Rob Wood today told analysts the operator’s overall US market share was up to 12.5%.
“Across the whole US market, not just markets where we’re live, we’re now up to 12.5% share and firmly positioned as a top-three operator,” Wood said.
“If you look at the states which came online during the year, our share of online sports over the last three months was 21%,” he added.
Wood said BetMGM had already established an 8% share of the Pennsylvania betting and igaming market.
“Because of the successful launches and strong growth in New Jersey, active weekly digital sports bettors at the end of the year were more than triple the actives that we saw during Super Bowl week earlier in the year,” Wood said.
“Our Q4 actives are nearly double the actives that we saw in Q3, so momentum is certainly building,” he added.
Other operators have reported a similar rise in activity in H2 2020, including theScore, which saw betting handle soar 535% in Q3, driven by record app engagement over Thanksgiving weekend.
In Q4, BetMGM began to reap rewards from the vast MGM player database as Entain CEO Shay Segev revealed a high single-digit of all customer acquisitions came via the M life Rewards loyalty programme.
“Player values and CPAs have also progressed in line with expectations and we continue to expect CPAs to trend down from over $500 earlier in the year to around $250 over time,” Wood concluded in his presentation to analysts, although Segev admitted this reduction could take up to two years.