BetMGM is ablaze! Their earnings report reveals a staggering $944 million in income for the initial six months of 2023. This represents a 55% surge in comparison to the corresponding period last year. Such performance positions them well to achieve their ambitious objective of reaching profitability by year’s end, particularly after securing a substantial $150 million investment earlier this year.
The enterprise, a collaboration between MGM Resorts International and Entain, witnessed its income soar from $608 million in the first half of 2022. While specific profit figures were not disclosed, they did emphasize “substantial enhancement” in the second quarter of 2023.
Furthermore, they have been actively broadening their footprint, introducing their sports wagering platform in new territories such as Massachusetts, Ohio, and Puerto Rico. This expansion brings their total reach to an impressive 26 jurisdictions throughout North America. All the while enhancing efficiency, as demonstrated by an 8% reduction in their customer acquisition expenses.
Given such a robust first half, BetMGM is optimistic in forecasting full-year income to land between $1.8 and $2 billion. Moreover, they are becoming so self-sustaining that they do not anticipate requiring further capital infusions from their parent entities, MGM Resorts and Entain.
Entain’s Chairman, Barry Gibson, informed Gambling Insider that attaining profitability this year signifies a pivotal achievement for the organization. He is certain they possess the necessary attributes to emerge as a leading player in the US gaming landscape within the coming years. Undoubtedly, it is a competitive arena with intense rivalry, but BetMGM appears prepared to confront the challenge.
The American sports wagering market is becoming increasingly challenging, particularly for smaller competitors. Industry giants FanDuel and DraftKings dominate most states, creating a difficult environment for others. PointsBet, a moderately sized participant, recently conceded and sold its US business.
However, BetMGM appears to be thriving. CEO Adam Greenblatt expresses confidence, pleased with their progress and anticipating imminent profitability. They remain focused on achieving $18-20 billion in revenue this year and are on course to reach profitability (positive EBITDA) in the latter half of 2023, a milestone already attained in the second quarter.
