BetMGM on Track for Profitability After Strong First Half of 2023

MGMs wagering platform is experiencing a surge in success! Recent disclosures reveal that their income for the initial six months of 2023 has surged to an impressive $944 million. This represents a remarkable 55% increase compared to the corresponding period in the previous year.

This exceptional expansion positions them favorably to attain profitability in the latter half of 2023, particularly following a substantial $1.5 billion capital infusion earlier this year.

The enterprise, a collaborative endeavor between MGM Resorts International and Entain, also proudly announced that their earnings before interest, taxes, depreciation, and amortization (EBITDA) reached a notable high point in the second quarter of 2023, though the precise figures remain undisclosed.

Furthermore, BetMGM has been broadening its reach across North America, now operational in 26 jurisdictions, fueled by recent entries into Massachusetts, Ohio, and Puerto Rico. Notably, they’ve achieved this expansion while reducing customer acquisition expenses.

Given this exceptional first-half performance, BetMGM confidently forecasts its full-year revenue to fall between $1.8 billion and $2 billion.

This accomplishment also signifies a pivotal moment for the company’s financial autonomy. BetMGM declared they will not require additional equity investments from their parent entities, MGM Resorts International and Entain, as they anticipate achieving profitability in the second half of this year.

Entain’s Chairman, Barry Gibson, asserted in an exclusive conversation that they are targeting market leadership in the US within the coming years.

Undoubtedly, the competitive landscape is intense, but with their current trajectory and ambitious objectives, BetMGM is a formidable contender in the realm of online sports wagering and gaming.

The American sports wagering sector is growing progressively more challenging for businesses to penetrate, largely due to the dominant presence of FanDuel and DraftKings across numerous states.

PointsBet, formerly the seventh-ranked sportsbook in the US, ultimately opted to divest its American operations to Fanatics for $225 million earlier this year, underscoring the competitive nature of the market.

Despite this, BetMGM appears to be thriving currently. Their Chief Executive Officer, Adam Greenblatt, remarked: “Our robust performance throughout the initial six months of 2023 is encouraging as we persist in expanding our market share and fulfilling our profitability objectives.”

He further noted: “We are progressing as planned with our financial projections for the year – we anticipate generating $1.8 billion to $2 billion in income and attaining EBITDA positivity in the latter half of 2023. Indeed, we have already reached EBITDA profitability in the second quarter.”