BetMGM’s Revenue Surges to $1.96 Billion in 2023

Posted on: February 8, 2024, 01:23h. 

Last updated on: February 8, 2024, 01:23h.

BetMGM reported a 36% year-over-year increase in revenue, reaching $1.96 billion in 2023. This figure is on the higher end of the previously estimated forecast of $1.8 billion to $2 billion.

FanDuel BetMGM Super Bowl commercial
Wayne Gretzky, Tom Brady, and Vince Vaughn are set to star in BetMGM’s first Super Bowl commercial on Sunday. The gaming company posted $1.96 billion in sales in 2023. (Image: BetMGM)

The operator also announced that it achieved EBITDA profitability in the second half of 2023, with an expected EBITDA loss for the year of $67 million. This performance may prompt MGM Resorts International and Entain Plc to consider making a takeover offer for BetMGM or Entain itself, given the significant progress in narrowing losses and the path to profitability.

Jeffereies analyst David Katz believes that “MGM acquiring the outstanding stake of BetMGM or the whole of Entain” might be in the cards for the future.

Speculation is mounting that MGM could pursue a transaction with Entain due to activist investor pressure to instigate major changes at the UK-based gaming company.

BetMGM: The Good and the Bad

In its latest financial update, BetMGM reiterated its expectation to achieve $500 million EBITDA in 2026. CEO Adam Greenblatt expressed satisfaction with the results, mentioning strong organic growth and progress in strategic initiatives that set the stage for future growth.

Despite these positive developments, BetMGM revealed it only holds a 14% market share in the US sports wagering and iGaming markets, lagging behind rivals FanDuel and DraftKings (NASDAQ: DKNG).

The operator aims to strengthen its position through investments in live betting, same-game parlay technology, and a single wallet functionality to attract new customers.

Potential Catalysts for BetMGM in 2024

In 2024, BetMGM stands to benefit from North Carolina’s entrance into the online sports betting landscape and a full year of results from Kentucky. Additionally, the upcoming launch of a single wallet plan and focus on new, in-house iGaming content could further enhance the operator’s potential.

With the pursuit of these initiatives, BetMGM is gearing up to potentially bridge the gap with rivals and emerge as a major player in the US sports betting and iGaming industry.

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