Following up on its recent Q1 trading update, BetMGM LLC, jointly owned by Entain plc and MGM Resorts International, delivered a business update this week setting out the key drivers of its strong momentum and future expectations for the US sports betting market.
In its presentation, the company emphasized that it will target a long-term market share of between 20% and 25% of the rapidly growing US online casino and sports betting sectors.
It also underlined its status as one of the industry leaders there, having secured a market share of 23% over the three months to February 2021, positioning it to take the number two spot in US sports betting and igaming.
Looking ahead to next year, BetMGM said it anticipates achieving $1bn of net revenue from operations in 2022, while investment by Entain and MGM Resorts this year is expected to be approximately $450m, on top of the $210m already invested up to the end of 2020.
In the lead up to the presentation, BetMGM CEO Adam Greenblatt commented: “BetMGM has demonstrated strong momentum, building a leading position in igaming and is on track to be the number two operator across sports betting and igaming in the US.
“The US market is shaping up to be even larger and more exciting than we originally envisaged, and we now believe it will be worth $32bn, including Canada. Furthermore, the outstanding progress that the team has made so far means that we now expect to achieve 20-25% US market share long term.”
He added that the unique partnership of Entain’s proprietary technology platform and MGM Resorts’ leading brand and loyal customer base gives BetMGM the best resources to win in the market.
Entain CEO Jette Nygaard-Andersen, opening the presentation, commented: “Together with MGM Resorts we have the best resources in the market to be the leader in the US. Delivering on that ambition will, of course, require investment as we build towards profitability. And we have always said that we will do whatever it takes.
“So this year we expect to invest around $450m in BetMGM added to the $210m already invested today. The US is a huge opportunity and I can’t think of a better investment we can make that will deliver such significant returns to our stakeholders.”
Bill Hornbuckle, CEO and President of MGM Resorts, told investors: “When Entain and MGM Resorts came together in 2020 to create this joint venture we knew we had the winning combination for success.
“We firmly believe that the winner in this space will need to deliver a seamless omnichannel offering. This is something that we’re well equipped to offer because, at MGM Resorts, we bring real entertainment.”