Sports betting and iGaming operator BetMGM saw $271 million in net revenue in the first quarter of the year, up 58% compared to the same period in 2021. It has also posted an EBITDA of $178 million (versus $160 million in Q1 2021), executives announced in a virtual business update for analysts and investors Thursday, in which they reaffirmed the outlook guidance for FY 2022.
The event featured BetMGM’s management team and provided insights into the North American sports betting and iGaming markets, as well as BetMGM’s operations. BetMGM officials said the company has established itself as a market leader, delivering strong performance in line with its ambitions.
The company’s management said the brand has achieved the number one position with a 25% share in the U.S. sports betting and iGaming markets where it operates. It also stated that it has consistent leadership in the U.S. iGaming market with a 29% share.
BetMGM also presented its numbers and statistics for both its fiscal year 2021 and the first quarter of 2022. The brand saw a financial performance of $850 million in net revenues in 2021, which quintupled 2020’s results, and had an EBITDA of $430 million. During that year, the brand opened in 8 new markets. In terms of sports, the company reported an increase of 39% year-over-year in same-store Super Bowl handle, and a 59% increase in NCAAB Tournament handle as well this year.
Since the company’s Investor Day held in 2021, the company has opened in 11 new markets, taking its operations to a current number of 23 jurisdictions, and has opened 23 branded sportsbooks. BetMGM expects to open in 10-15 new markets by the end of 2023.
A marketing presentation by Chief Revenue Officer Matt Prevost showed that the brand has “a strong momentum” in the U.S. Looking ahead, the company sees a rise in property visitation post-covid.
BetMGM has opened new retail sportsbooks during the past year, including one in National Harbor, Maryland and Raiden Tailgate in Las Vegas; and expanded by extending into other venues such as Gila River Resort in Arizona and Emerald Queen in Washington.
BetMGM's retail sportsbook in Washington.
The company expects potential state regulations in Maryland, Ohio, Massachusetts and New York for 2022, and to see expanded capabilities with MGM Resorts. For its digital execution, BetMGM expects to build robust MarTech and team capabilities, and foresees a significant opportunity with the digital Single Account.
In terms of customer experience, Jarrod Schwartz, Chief Product Officer, stated that the company has strategically focused on 3 key areas, which include customer experience, differentiated product and content, and technology stack.
BetMGM has also redesigned its digital experience including Single Account and Wallet, which allows the bettor to only sign up once, has an unified wallet for deposit and withdrawals, and more.
In terms of gaming product and content, the company has found itself in “a strengthened position” when it comes to iGaming through differentiated product and content. It currently has more than 1000 games, including 2 developed in-house. It has seen 134% growth in its GGR in live dealer games, and has paid more than 80 million in jackpots in the last 12 months.
In terms of sports, in-play bets have risen 160% year-over-year in live sports betting handle. It has seen a 400% growth compared to the previous year, in one game Parlay handle. BetMGM has also recorded a 126% growth in customers using omni-channel deposit methods.
Officials also referred to the company’s total addressable market (TAM) in the U.S. and Canada, now expected to be approximately $37 billion, driven by expansion in online sports betting and strong customer dynamics.
Finally, BetMGM reiterated its long-term ambitions in the U.S., which include an expected market share of approximately 20%-25%, an expected EBITDA margin of 30%-35%; and reaffirmed its outlook guidance for FY 2022, which implies net revenues of over $1.3 billion, and reaching positive EBITDA during 2023.