MGM Resorts International and Entain are doubling down on their online betting venture, just as one of the biggest U.S. betting markets opens to mobile betting.
The companies are investing around $450 million in BetMGM this year, the online sportsbook that they own 50-50. The fresh cash will be deployed toward growth into new markets and new products.
BetMGM is not yet profitable, but with the launch of mobile betting in New York this month and more states opening up to sports betting, the companies are projecting confidence.
- BetMGM anticipates $1.3 billion in net revenue in fiscal 2022.
- The venture expects profitability the following year, based on its outlook for new markets. It is currently live in 19 jurisdictions for sports betting, with igaming offerings in four of those.
- The companies said that “BetMGM is achieving market share in line with its long-term target of 20% to 25% in U.S. sports betting and igaming.”
Launched in 2018, BetMGM earned $850 million in revenue in the past year, “ahead of management expectations and up nearly five times from the prior year,” according to BetMGM CEO Adam Greenblatt.
Twenty-six states and Washington, D.C., have legal and operational sports betting, while three more allow it in a more limited form.
Florida, the third-most populous state, is one of six that have legalized sports betting but have not yet launched it.
California plans to put sports betting on the ballot as a voter referendum this November.