BetMGM performing better than expected; ambitious profits target set

Article by : Charles Perrin Dec 7, 2023

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BetMGM has comfortably met its primary financial target this year with the online casino and sportsbook operator tracking to achieve sustained levels of growth in 2024.

That is the view of BetMGM CEO Adam Greenblatt who passed on his remarks during a conference call he held with industry analysts.

Before the start of 2023, BetMGM was tipped to haul in revenues of between $1.8billion and $2billion, but now, it is poised to hit the higher end of the initial forecast range.

Indeed, BetMGM has performed better than many previously expected over the past 12 months, with Greenblatt revealing that EBITDA (Earnings before interest, taxes, depreciation, and amortization) grew by over $300million. That will ultimately put BetMGM in a stronger position to drive enterprise value for shareholders in 2024.

More pertinently, BetMGM appears to be better placed to support itself which, in turn, will delight Entain, with the UK-based gaming giant possessing a 50% controlling stake in the company.

To date, Entertain has contributed over $1bn to BetMGM’s gaming unit, and of that, $150m was passed to BetMGM by its owners this year.

In addition, Greenblatt has told analysts that BetMGM is expecting to garner $500m in EBITDA in 2026.

BetMGM has managed to enjoy continued success thanks to a versatile gaming product as well as accelerating player acquisition.

Giving his thoughts, BetMGM’S CFO Gary Deutsch said: “While discussion of hold percents and win margins often focus on sports, we’ve also seen expansion of our NGR margin in igaming.

“That is also driven by bonus optimization across our casino players as well as an increase in recreational players.

“Recreational players tend to prefer slots to table games. Slots are the high margin.”

BetMGM has also been investing heavily in product development, most notably advancing the quality of its mobile app.

This has included making the app more intuitive and appealing, and BetMGM is attempting to tweak the deposit and withdrawal process to retain existing players.

BetMGM, which has gaming products in 28 jurisdictions across the US, will be delighted with its progress. As such, it should have the impetus to push on and reap the rewards in 2024.