BetMGM expects $1.3 billion in revenue ’22

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Today, BetMGM hosted its Investor Day, informing analysts that the company produced $850 million in revenue last year and expects considerable top-line growth to $1.3 billion in 2022.

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MGM Resorts International (NYSE:MGM) and Entain Plc (OTC:GMVHY) announced in February that their 50/50 joint venture has a 29 percent iGaming market share and a 25 percent sports betting market share in the markets where they operate. BetMGM is currently available in 23 US areas as well as Ontario, Canada. BetMGM says that it is the leading provider of online casinos and sports betting in the areas where it operates, and it expects to grow.

In 2023, the gaming firm expects to be profitable on earnings before interest, taxes, depreciation, and amortization (EBITDA), adding that it is currently profitable in Michigan and New Jersey. It also mentions favorable contributions from Arizona, Colorado, and Tennessee, as well as the possibility of Virginia arriving this year.

According to an investor presentation, “the total addressable market (TAM) in the United States and Canada is currently estimated to be above $37 billion, driven by increase in online sports betting and strong user dynamics.”

BetMGM estimates that $17.6 billion of the $37 billion comes from US sports betting, $14.8 billion from domestic iGaming, and the rest comes from Canada.

BetMGM Market Outlook

The $37 billion prediction is based on a “at maturity” scenario. If the report is correct, it means that internet casinos are accessible to 38 percent of Americans, but online sportsbooks are accessible to 80 percent. The expected figure in Canada is 65 percent.

Obviously, expanding into new markets is critical to achieving and exceeding those goals. Since its 2021 Investor Day, BetMGM has virtually doubled the number of markets in which it operates, from 12 to 23. According to the gambling corporation, it has gained access to 30 jurisdictions and plans to enter another 10 to 15 by the end of the year.

MGM has access to desired California and Texas, as well as mid-size and smaller states like Kansas, Maine, Massachusetts, Missouri, and Ohio, where sports wagering is presently not live or legal.

California voters will decide the fate of two sports betting ballot measures in November, one sponsored by tribal casino corporations and the other backed by commercial operators like BetMGM.

BetMGM Driving Cost Down

The financial community is growing tired of gambling businesses spending significantly in the name of user acquisition, as seen by the falling prices of sports betting stocks.

On that topic, BetMGM’s investor presentation states that the company is on track to achieve a $250 cost per acquisition (CPA) “despite spending hundreds of millions less than competitors.”

BetMGM offers certain benefits over online-only competitors DraftKings and FanDuel, including a large portfolio of land-based casinos. In North America, there are now 23 BetMGM retail sportsbooks. Some are at professional sports stadiums and tribal casinos.

As a result, BetMGM may use the MGM Rewards reward programme, which has over 37 million users. According to the operator, 20% of its pl…

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