BetMGM is setting ambitious goals for the future, aiming for a 25% market share in the US by 2026 while delivering $500.0m (£396.1m/€462.2m) in positive EBITDA. This announcement comes after the company revealed it expects to be at the higher end of its guidance for 2023. CEO Adam Greenblatt stated that the company’s revenue for the current financial year is projected to be between $1.80bn and $2.00bn.
In an investor presentation on December 4th, Greenblatt outlined BetMGM’s plans for the future. As a joint-venture between Entain and MGM Resorts International, BetMGM anticipates being self-funding from 2024 onwards. The company views the next year as an investment period, and while profitability is expected in 2023, there are projected negative EBITDA for 2024.
When asked about the available funds for investment, Greenblatt and CFO Gary Deutsch did not disclose a specific amount but assured that there is ample money to “compete and invest for growth at the highest levels.” The company hopes to achieve positive EBITDA in 2025.
BetMGM is placing a significant focus on Las Vegas, with plans to take advantage of the increasing number of sports fans visiting the city. The recent Formula One race in Las Vegas was a record-breaking weekend for the company, and they are looking to capitalize on the upcoming Super Bowl at the Allegiant Stadium.
Expansion is also a key focus, as BetMGM is now available in 28 markets and plans to enter North Carolina next, with further opportunities in New York, Maryland, and Illinois. The company currently holds a 17% market share in North America and is aiming for a long-term aggregate market share of 20-25%.
Looking back on 2023, BetMGM has had a solid year despite facing challenges such as a cyberattack on MGM Resorts properties in the US. The company’s UK launch, aided by a deal with English Premier League club Newcastle United and featuring Hollywood star Chris Rock in marketing campaigns, has been a major highlight.
Despite previous attempts to purchase Entain, MGM Resorts CEO Bill Hornbuckle stated that no further attempts would be made, emphasizing the strategic importance of BetMGM to both Entain and MGM Resorts. BetMGM is optimistic about its future growth and expansion, with plans to leverage personalization and an enhanced cross-sell program to boost its player acquisition strategy.