Continued success and strong performance driven by the Entain platform
Since taking our first steps into the US market in 2018, BetMGM has grown to become one of the leading sports betting and iGaming operators in the US. The success achieved so far sees BetMGM as the number two operator across the markets in which it operates, with a 23% market share for Q4 2021. BetMGM remains the clear market leader in iGaming with 29% market share and is also delivering growth and success across sports betting.
BetMGM’s strong performance in 2021 delivered net revenues from operations of approximately $850m (£625m), which was over five times more than 2020; this was ahead of both our expectations and market estimates. Crucially, BetMGM has already achieved profitability in several states, including New Jersey which was EBITDA positive in FY2021.
In addition to increasing our revenue expectations for 2022 to over $1.3bn (£960m), BetMGM also anticipates reaching profitability in 2023. Whilst that is based on current assumptions of number of live markets and new openings in the coming years, this impressive financial progress is driven by the product, the offering, the data-driven marketing strategy, the technology, the people and the expertise of Entain’s industry-leading platform. In addition, BetMGM’s omni-channel offering leveraging the strength of the MGM brand and its casino footprint supports BetMGM’s market leading offer.
During the year, BetMGM expanded into nine new markets, with launches across both retail and online sportsbooks, as well as gaming. Today, BetMGM is live in 22 jurisdictions with access to approximately 41% of the US adult population.
As an example of how action-packed 2021 was for BetMGM, the business launched three new markets during just nine days in the lead up to the key NFL season. To coincide with the NFL season excitement, September saw BetMGM air its first national TV advertising campaign, which starred Jamie Foxx as our King of Sports. This landed extremely well, driving fantastic brand awareness at a key point in the sporting calendar. We have since followed this initial splash with a second instalment, as well as expanding our stars to include NBA legend Kevin Garnett, NHL ace Wayne Gretzky plus multi-time World Poker Champion Darren Elias.
New York was one of the most eagerly awaited of the recent launches since the start of 2022 and it hasn’t disappointed, blasting through all our expectations with its first day the most successful of any state launch to-date. The launch of Illinois last week and the forthcoming launch in Ontario, expected during the coming months, will enable BetMGM to further capitalise on the fast-growing North American market as well as expand into the Canadian market opportunity.
Further to these developments – and the launch in Louisiana at the end of January – BetMGM launched in Puerto Rico just in time for the NFL SuperBowl weekend. This is BetMGM’s first operation outside of the US mainland, and saw it become the first operator to offer legal sports betting on the island through kiosks and betting windows at a San Juan-based resort. A full-scale BetMGM retail sportsbook is set to open at La Concha Resort later this year with plans to launch its mobile betting app in the months ahead.
Our success in the US has not only been about expansion and new state launches however, critically there have also been a significant number of developments in BetMGM’s product and offering. Parlay – or accumulator – bets are a particular area of focus for US customers, with the episodic structure of many US sports lending themselves particularly well to in-play activity. BetMGM’s product team have made significant enhancements to our products and features which are proving popular with customers. Our One Game Parlay product is also a key focus, as it enables bettors to select multiple outcomes within one specific match. The proportion of parlay bets versus all bet types in the US is increasing and over the coming months BetMGM’s in-game and Parlay products portfolio will be further expanded and deliver a better and more engaging experience for our customers.
Leveraging Entain’s expertise, BetMGM recently launched Borgata Bingo in New Jersey, which is the first of its kind in the market. In addition, BetMGM’s Horse Racing app recently launched in three states where it did not have pre-existing operations. Earlier this month, BetMGM debuted Majestic Lions, a new online casino title, built by Entain’s in-house studio, Win Studios. Entain has developed and released more than 60 proprietary table and slot titles for BetMGM’s casino brands. Such is the popularity of these games that five of the top 10 games on BetMGM Casino are exclusive in-house products.
Entain continues to fully support BetMGM and its continued success. We announced in January that both joint venture parents, Entain and MGM Resorts, have committed to a further investment of approximately $450m in 2022, bringing the combined total investment to approximately $1.1bn since launch in 2018.
BetMGM plans to hold its second investor event in May, where it will provide a deeper dive into the business’s performance, its route to profitability, as well as its exciting plans for future growth.