During this week’s earnings call, Entain interim CEO Stella David admitted that the efforts required of the company’s joint venture with MGM, BetMGM, might have had a negative impact on other aspects of the business.
“Being fully transparent, it took us…some time to realize just how quickly we needed to feed BetMGM with better product, better customer experiences and better, more focused, U.S.-tailored products,” she said on the earnings call.
“Delivering product and tech solutions for BetMGM at the pace that we have had to do it has meant there has been some considerable cost to other markets.”
While other aspects of the company had a tough quarter in the face of regulatory headwinds, BetMGM continued to perform strongly for the company. The joint venture posted nearly $2 billion in net gaming revenue, a bump of 36% year over year and the very top of the projections for 2023.
“With both parents of BetMGM committed to investing into the growth, we are positioned very well for 2024 and look forward to a positive market share progression,” David said of the venture’s future.
As for the rest of the company, Entain stated that 2024 is facing a difficult road as the result of regulatory changes in the Netherlands and the U.K. The company projects a negative impact of around $50 million.
In December of last year, Entain CEO Jette Nygaard-Andersen announced her resignation after a Q3 where organic revenues outside of BetMGM were on the decline.
