Entain reported BetMGM’s net gaming revenue grew 18% year-over-year for the third quarter of 2024, driven largely by improvements to its NFL and wider parlay offerings.
The numbers show that Entain’s joint venture brand with MGM Resorts International was a standout performer in the quarter. New Entain CEO Gavin Isaacs said on an earnings call on Thursday that BetMGM’s NGR growth, which outstripped the overall company’s 8% increase in Q3 2024, reflects its “much improved product and greater investment in player acquisition.”
Company executives said an operational focus on must-win markets, product enhancements and organizational efficiency yielded continued delivery against its strategic priorities of organic revenue growth, margin expansion and winning in the U.S.
Entain also said BetMGM continues to benefit from its betting technology provider Angstrom. Thanks to Angstrom, BetMGM’s sports betting offering now includes enhanced parlay and player prop options as well as new streamlined live betting and bet slip features, improvements that were in place in time for the new NFL season.
“Now that we have Angstrom-enhanced markets across all the main four U.S. sports, it’s really pleasing to see things like parlay mix and theoretical GGR margin tick up week by week,” Entain CFO and Deputy CEO Rob Wood told investors on the earnings call. “Our engagement’s improving, things like active player days are up in both gaming and sports, bets-per-active is up double digits in sports, which we’re really pleased with and there’s potentially an Angstrom effect playing through there.”
Execs say they’re satisfied with US market share ‘stability’
BetMGM also “stabilized” its U.S. online gambling market share at 15% overall. That was a slight tick up from 13% last quarter, which Wood put down to seasonality during the quieter sports months.
There is a notable difference between BetMGM’s Q3 iGaming capture (22%) and its online sports betting slice (8%). BetMGM’s iGaming operations saw record revenue during Q3.
Isaacs added that the key for BetMGM in Q3 was that it did not lose any more market share and has held a steady U.S. position, and noted that one of the next priorities for the brand is improving the player interface and experience in collaboration with Angstrom.
“We’re not losing, which is the key,” the CEO said. “The whole idea for this season was to get better performance. Over time, as we can build upon that success, we can improve upon the player interface, the player experience, begin to use some of the strength of our brands over there. I think we’re quietly encouraged by the current performance.”
“I don’t want people to take our 15% and think that we’re on the upward trajectory,” added Wood. “That’s not the case, not yet, but we do have stability. That’s step one, just holding market share after clearly a long period of seeing it slip away. If we stay at 13%, 14%, 15% in the world’s largest market with the most growth… that’s a good starting point.”
Entain forecasts further growth
As a result of a stronger-than-expected Q3, Entain is forecasting positive results for the full year, lifting its FY24 group EBITDA projection to the higher end of the guidance range.
Isaacs, who took the reins as Entain’s CEO in September 2024, expressed optimism about the company’s future.
“My first few weeks as CEO of Entain have reaffirmed my view that this is a very good business operating in a highly attractive global industry,” he said. “Entain has great brands, an enviably diverse global portfolio and is bursting with talent, ambition and opportunities. Entain is already on a path of strategic and operational improvement, with the strong Q3 performance demonstrating the progress achieved so far.
“We are at the beginning of the journey and I’m looking forward to accelerating our progress, leading the business in our next growth chapter and capturing the many exciting opportunities ahead.”
Entain is expected to publish its Q3 results in full during the coming weeks.
