BetMGM reports $944M revenue for H1, reaffirms full year guidance and path to profitability

Sports betting and iGaming operator BetMGM, jointly owned by casino giant MGM Resorts and online gaming group Entain, has reported $944 million in net revenue for the first half of 2023, a rise of 55.2%. The company notes that it remains on track toward profitability, and reiterated its revenue guidance of $1.8 billion – $2 billion for the whole year.

BetMGM also reported positive EBITDA during its Q2 of 2023 and credited features such as a new bonus optimization system and an enriched player account management platform for improved margins over the first half of the year.

In addition, BetMGM has continued to expand geographically in North America, launching online sports betting in Ohio, Massachusetts and Puerto, bringing its footprint to 26 jurisdictions by the end of H1. As for market share, it stands at 27% for iGaming, and 11% for mobile sports wagering. However, that figure increases to a 13% share in markets where it was live on the market’s first day.

Adam Greenblatt, Chief Executive Officer of BetMGM, commented: “I am pleased with the significant progress we have made during the first half of 2023 as we continue our strong growth and remain on our path to profitability. Our financial guidance for the year remains on track – we expect to deliver $1.8 to $2.0 billion in full-year revenue, as well as to be EBITDA positive in the second half of 2023. In fact, we have already achieved positive EBITDA for the full second quarter of this year.”

He added: “Our focus remains on building a sustainable, scalable and returns-focused business with leading products that our players enjoy responsibly. We look forward to the remainder of the year, buoyed by ongoing product improvements, tremendous support from our shareholders providing access to new assets and partnerships, and – above all – our extraordinary team at BetMGM.”

During the first half of the year, the operator also increased its sports net gaming revenue margins by 300 basis points. It also generated a 65% increase in revenue per customer for players acquired before 2022. 

The operator notes that both parent companies Entain and MGM Resorts contributed new technology, resources, and relationships to accelerate both BetMGM’s product evolution and its access to players. However, encouraged by the positive update, BetMGM said that it expects to become “self-sustaining” in H2, meaning no further equity investment would be expected from either MGM or Entain.

Earlier this month, Entain acquired pricing and risk specialist Angstrom Sports, which is expected to enhance BetMGM’s sports betting offering, particularly in the fast-growing markets of parlay and in-play wagering, and provide players with a greatly improved experience.

For its part, MGM Resorts signed an exclusive partnership with Marriott through which BetMGM entered into a loyalty agreement whereby the brand will offer customers opportunities to earn Marriott points, create exclusive games and experiences, and allow customers to exchange BetMGM Rewards points for Marriott points.