BetMGM ($MGM) gave a recap of 2021 and a look ahead to expectations for 2022. They aren’t in the toothpaste business, but CEO Adam Greenblatt has a fresh outlook.
“We will reach profitability in 2023 based on what I can see today,” Greenblatt said. “Let’s not lose track of reality, we are not selling toothpaste.The market is in its relatively early exciting stages with new states, in uncertain times..We’re also subject to the short-term results-based volatility in sports.”
BetMGM online casino arrived in Pennsylvania in early December 2020 and BetMGM PA sportsbook followed a few weeks later. BetMGM also operates Borgata online casino in PA.
Key figures for BetMGM
BetMGM raised its 2022 revenue forecast by over $300 million to more than $1.3 billion. In addition, BetMGM is eyeing positive EBITDA in 2023.
Highlights from BetMGM update on performance and outlook for 2022:
- Achieving market share in line with its long-term target of 20% – 25% in U.S. sports betting and iGaming.
- In markets where BetMGM is currently available, it was the No. 2 operator for sports betting and iGaming with a 24% market share for the three months to November 2021.
- Market leader in iGaming with 30% share (three months to Nov. 2021)
- 2021 revenue should be $850 million, which is above management’s expectations. The EBITDA loss of $420-440 million to $440 million lines up with expectations.
BetMGM online casino and sportsbook insights
Online casinos and sportsbooks are usually more secretive with player data (non-personal information) than an Italian grandmother with her recipes. Business updates don’t give exact figures but offer a glimpse of usually tightly-guarded player data.
- In states with both the sportsbook and online casino, 40-50% of users were engaged with both products. Most typically flow from the sportsbook to the casino.
- Online casino player values are higher than an online sportsbook user.
- Monthly active users in Q4 grew 3X YoY.
Comments from BetMGM CEO on Jan. 2022
Some comments from Adam Greenblatt, BetMGM CEO, during the business update:
BetMGM revenue growth
“2021 was an incredibly strong year for BetMGM building on the foundation laid in 2018, 2019 and cemented in 2020. 2021 saw us accelerate our customer engagement and grow our share and become the No. 2 operator across our active markets. Our revenue grew by nearly 5X.”
Land-based and online casinos can co-exist
“Competition has come from land-based casino operators and that’s going away. Land-based casinos and iGaming can co-exist and thrive. Lawmakers will look at success and associated tax revenue from Michigan, Pennsylvania and New Jersey, and we’ll see a more substantial trend toward the adoption of iGaming. The winds are turning.”
Demand for product
“We haven’t seen a plateauing of organic demand in our live states….”
Amount sportsbook promotions at the start of NFL season
“The aggressive, competitive promotional environment was not a surprise to us. We continue to deploy our best-in-class acquisition and marketing tools which are built on Entain’s tech stack and focus on acquisition efficiency and ROI built around our predictive models for online sports betting and iGaming. This allows us to tailor player investment.”
New York online sports betting launch
“We are delighted with how the launch has gone. It has broken all of our records for most first-time depositors, most bets, and most handle. What I found particularly pleasing was our tech performed flawlessly. We had the highest registration-to-deposit conversion of all of our markets and the highest new player deposit success rate.
“We answered all chats and calls within an average of 29 seconds. If you read all the social media, many of the players had a difficult experience in the first few days of sports betting in New York.”
Product evolution
“We offer our players a great experience. The product opportunity remains. That’s certainly not to say that we are surprising and delighting our players with the experience that is available today. Our product team is working with Entain and we have plans for product evolution in the coming months.”
What’s next for BetMGM?
- Q4 earnings call on Feb. 9.
- More states legalizing sports betting and online casinos.
- Expanding first-to-market Bingo product and the BetMGM racing app (currently live in NJ).
Lead image c/o BetMGM.
