BetMGM expects to deliver net revenue of over $1.3bn in 2022, according to a performance update released yesterday.
US.- BetMGM, the sports betting and igaming operator jointly owned by Entain and MGM Resorts International, has announced that it expects FY2022 net revenue to exceed $1.3bn. Updating investors in a conference call on its 2021 performance and outlook for 2022, the group says it was achieving market share in line with its long-term goal to hold 20-25 per cent in US sports betting and igaming.
Gary Deutsch, BetMGM chief financial officer, said: “In our plan for next year 90% of the revenue we’re looking at comes from states that are live as of today. That includes New York.”
BetMGM is live in 19 jurisdictions, with igaming in four and sports betting in all 19. The group expects to reach approximately 40 per cent of the US adult population with two further jurisdiction launches, and it also has launches planned in Canada and Puerto Rico in the coming months.
It reported a “strong financial performance” for 2021, with net revenue expected to be approximately $850m, ahead of expectations and up almost five times from the prior-year period.
CEO Adam Greenblatt said: “The highly talented team at BetMGM is executing our plan with purpose, passion and discipline, and our results speak for themselves. After only 3 years into our journey, we have cemented the credibility of BetMGM’s leadership ambition in sports betting and igaming in the US.
“2022 is a critical year, where the leading national operators will reach critical mass, paving the way for the next phase of the sector’s financial evolution.”
Looking ahead to FY2022, the operator predicts net revenue will continue to grow and exceed $1.3bn thanks to investments in additional markets and product deployments. Alongside the sports betting and igaming launches, BetMGM will expand its Bingo product and the BetMGM Racing app into additional states while continuing to enhance products in existing markets.
Further ahead, BetMGM believes it can reach positive EBITDA in 2023 based on its current assumption of future live markets. The investment from MGM Resorts and Entain is expected to be approximately $450m in 2022, bringing the combined total investment from both parties to approximately $1.1bn since launch in 2018.