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BetMGM in Q3 – A Look at the Numbers
BetMGM saw its first profit since partnering with Entain in its third-quarter results posted last week. The third largest online sportsbook in the US after DraftKings and FanDuel holds an 18% market share in the states where it’s licensed.
Co-owner of BetMGM Sportsbook, MGM Resorts generated $4 billion in revenue for the third quarter of 2023. This was despite losing approximately $100 million in a September 2023 cyber attack that crippled several systems.
BetMGM Sportsbook added online sports betting in Kentucky in the third quarter after agreeing with Revolution Racing Kentucky to provide online and in-person wagering.
New customers can sign-up using BetMGM bonus code AMERICANGAMBLER for a $1,500 first bet offer.
BetMGM Q3 Earnings
In its first profitable quarter since its partnership with Entain, BetMGM had an operating income of $25.3 million. MGM Resorts benefitted from the growing US sports betting market to post $458 million in net gambling revenue in Q3 2023, a 15% year-over-year increase. Entain, which also owns and operates the Ladbrokes betting brand in the UK, estimated BetMGM revenue of between $1.8 billion and $2 billion for fiscal year 2023 as it widens its reach into new markets solidifying is position among the topflight sportsbooks.
BetMGM Eyes Future Growth
Entain’s three-year strategy to increase shareholder value includes market share growth of BetMGM in its plan. Entain says it would like to see BetMGM increase its share in the US market to between 20% and 25% before 2026. It’s also aiming for 7% in net online revenue gains during 2025 and an online margin of 28% by 2026, which doesn’t include BetMGM’s influence.
BetMGM CEO Bill Hornbuckle also talked about the launch of BetMGM in the UK through its LeoVegas brand, which looks very promising. “The UK market is ideal for an initial launch due to its size and the brand recognition of MGM with UK customers. Initial KPIs are very encouraging, with the first-time deposits much higher than expected,” Hornbuckle commented.
Hornbuckle also disclosed that BetMGM is looking to reach additional international markets due to the early success of its launch in the UK, saying, “We will also look for a push to extend into further international markets through existing B2B relationships.”
MGM didn’t mention adding new investments in its Q3 earnings report, but Hornbuckle confirmed that Entain’s comments about future investment happening if the company needs to increase market share is a 50/50 endeavor.
“It’s not like where we’ve been. But if somebody said you need to invest another $50 million to make sure your long-term value is there. I’m shooting for end of ’25 as a goal. Where are we going to be? Has this thing really begun to do the kinds of things I think we all think and expect and hope it to do? And so we’ll continue to invest accordingly and appropriately and purposefully with these guys.”
Entain purchased Angstrom this past summer for $265.4 million, which allows BetMGM to provide MLB baseball bettors with house-generated same-game parlays for the start of the next MLB season in the spring.