BetMGM Remains Optimistic

MGM Resorts sees 2024 as a year of reinvestment for BetMGM, during which it will intensify its focus on improving its offerings. BetMGM is 50% owned by MGM Resorts and Entain. Gavin Isaacs, the former CEO of Scientific Games, was appointed as Entain’s permanent CEO. Over the course of his 25-year career in the gambling sector, Isaacs has held positions at DraftKings, SBTech, and Bally Technologies. Stella David was named as chair of Entain’s board of directors along with the announcement. 

Check out the latest sports betting odds at BetMGM.

“I’m excited by the relationship we’ve created with Stella as the interim CEO and now the Chair. I’m equally excited by the progress that’s been made by the team and BetMGM’s product enhancements, with a key focus by the Entain Group,” said CEO of MGM Resorts Bill Hornbuckle. “And now, the recent addition of Gavin is comforting. I think he will do wonders for that business.”

A first-half update was given by BetMGM prior to the earnings call. Despite reporting $123 million in first-half EBITDA, BetMGM stated that it had surpassed its acquisition and retention targets. As a result, BetMGM anticipates that the measurements will result in increased revenue growth in the second half and into early 2025 compared to the previous year. BetMGM’s net revenue from operations during the first half of 2024 was around $1 billion, representing a 6% rise from the same period the previous year.

“The first half of this year has been very important in laying the groundwork for BetMGM’s future. 2024 is a year of investment, focusing on improving our customer experience, and stepping up our level of investment in players,” BetMGM CEO Adam Greenblatt said in a statement.

BetMGM feels that by acquiring Angstrom Sports from Entain, it now has the capacity to give customers better betting options. The in-house technology for MLB Same-Game Parlays has impressed BetMGM, and this breakthrough may provide the business a boost before football season begins. Astute listeners to last week’s call saw that BetMGM appeared to rescind their recommendations from last December. Barry Jonas, an analyst at Truist Securities, pointed out that BetMGM shifted the $500 million EBITDA goal from 2026 to the “coming years.” The enterprise did not specify a certain date on which it expects to accomplish the aim.

BetMGM anticipates that EBITDA creation in the second half of 2024 will be similar to that in the first half of the year. Consequently, BetMGM is expected to declare a negative EBITDA of approximately $250 million for this year. Despite reducing losses in the previous year, the company anticipates ballooning deficits in 2024. The venture recorded net losses of $90.9 million in 2023, a decrease from $234.5 million in the year prior.

In terms of both sports betting and iGaming, BetMGM reported that during the first half of 2024, it had a 13% GGR market share in the US and Ontario. BetMGM is well behind industry giants FanDuel and DraftKings in online sports betting. Sports betting is available at BetMGM in 24 markets.

“In the big picture, we love what BetMGM has done for our brand. We love the long-term prospects, and we enjoy having a partner during this development stage that is equally focused on the business,” Hornbuckle said. “We are very hopeful for what will come this fall. And frankly, it’s pivotal to the business and to our ability to regain share.”

Check out the latest sports betting odds at BetMGM.