MGM CEO says BetMGM product shortcomings will be resolved via Angstrom acquisition
Bill Hornbuckle acknowledges lost market share over past 12 months for JV as he says improved parlay tech will allow firm to claw back share from FanDuel and DraftKings
MGM Resorts International CEO Bill Hornbuckle has said BetMGM’s decrease in market share over the last 12 months was because the product “isn’t and wasn’t where it should be”.
Speaking at the J.P. Morgan Gaming, Lodging, Restaurant, and Leisure Management Access Forum last week, Hornbuckle was pressed on how the JV is progressing given the tough competition and costs in the market.
Hornbuckle said there was a need to “step back and put [BetMGM] in perspective” given the presence of the DraftKings and FanDuel duopoly but recognized the operator’s shortcomings.
He said: “We’re in almost every marketplace, whether it’s igaming or sports. In totality, we’re the number three operator in the US and the only brick-and-mortar operator at that scale.
“Having said that, we also recognize, particularly over the last 12 months or so, we had lost share. We lost share in sports betting.”
“I think a lot of the changes you’ve seen now in Entain are centred around other things, but the principle thing is that our product isn’t and wasn’t where it should be. They have recognized it. We have obviously recognized it.”
The CEO then pointed to Entain’s $258m acquisition of London-based data firm Angstrom Sports as a catalyst for turning around BetMGM’s product difficulties.
Hornbuckle remarked: “[Entain] bought a company called Angstrom that will enable us to expand our parlay product.
“If you look at FanDuel and DraftKings, their margin is up maybe 200 or 300 basis points from ours because [of their parlay product], and other things, but that is the principal reason,” he added.
In a recent Q&A with EGR, Entain interim CEO Stella David echoed Hornbuckle’s point about improving the BetMGM product.
She said: “It’s [about] getting our product right and getting the consumer experience right. We’ve put a huge amount of effort in over the last 12 months to get ourselves to a level playing field and above in terms of our product delivery.”
During a fireside chat at the J.P. Morgan event, Hornbuckle also discussed the changes at Entain, with David having been drafted in following the departure of Jette Nygaard-Andersen in December.
He said: “We like the partnership we are in, I think with Stella, there’s been a bunch of transparency. There’s a new CEO coming [and] there’s a keen focus.
“We obviously follow very closely what’s happening with Entain. It’s kind of hard to miss. But for now, we’re going to stay focused on driving the business that exists. And we’ll take it one day at a time.”
Finally, Hornbuckle lifted the lid on igaming operations at BetMGM, noting that icasino in just three states account for more than 60% of the JV’s GGR.
Hornbuckle said: “[Igaming] is a fascinating business. It is a critical piece to [BetMGM]. Expansion [in] every single state is a big deal. If you could get to 10 or 12 states, the changes that whole dynamic in a meaningful way.”
As it stands, there are seven US states that have live, legalised igaming, with Rhode Island becoming the latest addition to the collective earlier this month.