Product expansion and development are the keys to future online gaming success according to MGM Resorts CEO and CFO.
In a Q&A session with JP Morgan, CEO William Hornbuckle and CFO Jonathan Halkyard discussed the performance of MGM’s products in 2023 as well as its aims for 2024 and beyond.
When questioned Hornbuckle, emphasized the fact that there will be a push in BetMGM’s digital offerings throughout 2024.
BetMGM, a joint venture between MGM Resorts and Entain, generated $2 billion in revenue in 2023 and MGM expects this to rise 25% to $2.5 billion in 2024.
Despite this, Hornbuckle admitted that over the last 12 months, BetMGM has lost market share in sports betting due to the product it is offering not being “where it should be” and in 2024 it will be looking to develop its parlay product in an effort to fix this.
“If you look at FanDuel’s and DraftKings offering of note, their margin is up maybe 200 or 300 basis points some hours based principally around their parlay product. [Entain] bought a group called Angostura, which is a Quant House in London, and that will enable us to expand our parlay product,” said Hornbuckle
BetMGM’s app has now launched in Nevada and Hornbuckle spoke about the opportunity this offers to provide an omnichannel experience for consumers which means that customers would have the same app and a single wallet whether they were in Nevada or elsewhere.
Away from the U.S. Hornbuckle spoke about the successful launch of BetMGM U.K. in terms of both attracting attention and first-time depositors. Off the back of this success, Hornbuckle says that the next goal is to look for other international markets to bring BetMGM.
“We went into the U.K. with BetMGM. We wanted to prove out the brand. We wanted to prove that we could go into a market, particularly a mature market and expand it and we’ve been able to do that so far. It’s very early days,” he added.
The pair were also asked briefly about the iGaming section of BetMGM’s operation.
BetMGM is currently live in five iGaming states and Hornbuckle expressed a desire for iGaming to expand into more states.
“The expansion [into] every single state is a big deal. And so as we think about it, if you could get to 10 or 12 states that changes that whole dynamic in a meaningful way,” he added.
