Sports betting and online gaming operator BetMGM expects net revenue of more than $1.3bn in 2022, according to a performance update released today (January 19).
In a conference call, Gary Deutsch, BetMGM chief financial officer, commented on the sources of this revenue, noting that it doesn’t include major inputs from new states.
“In our plan for next year 90% of the revenue we’re looking at comes from states that are live as of today,” said Deutsch. “That includes New York.”
“We have visibility on our status in the market, and we’re competing there with the more mature states.”
However, the business also revealed that it does not expect to reach positive earnings before interest tax depreciation and amortisation (EBITDA) until 2023. Adam Greenblatt, CEO of BetMGM, said the business is already bringing in positive EBITDA in some states.
“We closed 2021 with New Jersey being a full year contribution positive,” He said. “Michigan, after mid year, became contribution positive. When we look into the next year, we also see Arizona become contribution positive.”
“The highly talented team at BetMGM is executing our plan with purpose, passion and discipline, and our results speak for themselves,” said Adam Greenblatt, CEO of BetMGM. “After only 3 years into our journey, we have cemented the credibility of BetMGM’s leadership ambition in sports betting and igaming in the US.”
“2022 is a critical year, where the leading national operators will reach critical mass, paving the way for the next phase of the sector’s financial evolution.”
In terms of its 2021 full year results, the company expects a net revenue of $850m and EBITDA loss of $420m-$440m. This, it said, came thanks to a 24% market share in sports betting and igaming markets in which BetMGM operates, which places it second among operators in those markets.
Long term acquisition costs are set to hit $250m, as costs per acquisition stayed in line with estimated amounts, while long term total addressable market opportunity in the US is expected to reach $32bn.
“BetMGM has made significant progress in gaining a strong foothold in the rapidly growing U.S. sports betting and igaming market, solidifying its position as the number two operator nationwide in 2021,” said Bill Hornbuckle, CEO and president of MGM Resorts.
“As we look to 2022, we are beyond excited about further integrating BetMGM with our MGM loyalty program and land-based operations to elevate the BetMGM player experience.
In addition, the total investment in BetMGM, made by joint venture partners MGM Resorts and Entain, is expected to reach $450m in 2022. This would bring the total investment amount to $1.1bn since BetMGM’s launch in 2018.
BetMGM said that its future growth will be aided by market investments and product roll-outs throughout the year.
This includes plans to launch online sportsbooks in Illinois and Louisiana in Q1 2022, along with online gaming in Ontario and sports betting in Puerto Rico later this year. BetMGM also plans to expand its business product and its BetMGM Racing app into more states.
