One of the biggest providers in sports betting and online casino gambling in West Virginia gave an update on its fiscal year 2022 numbers, and things are looking up.
BetMGM WV, one of the most popular West Virginia sports betting operators and online casinos, announced that its 2023 net revenue is forecasted to be between $1.8 billion and $2 billion.
Additionally, the MGM-Entain product reported a profitable position in the second half of 2022. Factoring in interest, taxes, depreciation, and amortization (EBITDA), BetMGM’s revenue climbed to $1.44 billion. Previously, the company had issued a guidance of $1.3 billion.
BetMGM’s EBITDA loss totaled $440 million, which is directly in line with projections for the year. The West Virginia gambling favorite also showed 51% same-state growth in net revenue for digital operations.
BetMGM Chief Executive Officer Adam Greenblatt said in a news release:
“The talented team at BetMGM continues to execute our plan with purpose, passion, and discipline. With continued and unwavering support from our shareholders, we look to 2023 confident in achieving further key milestones, including $1.8 to $2 billion in net revenue from operations and being EBITDA positive in the second half of 2023.”
Three reasons BetMGM outshined projections
According to its report, BetMGM outperformed expectations for three reasons:
- Higher gross gaming margins due to a positive customer experience and other product improvements.
- Some state CPAs lessening the 21% year-over-year because of data-focused marketing strategy and increased scale.
- An improvement on its player bonuses from its data science team.
After the state legalized sports betting in 2019, BetMGM was the third sportsbook to climb aboard.
It’s currently one of seven sportsbooks in the state, and a popular West Virginia online casino option. The American Gambling Awards’ 2022 Online Casino of the Year offers more than 30 online games to West Virginians.
Its popularity has continued to grow on a national level, too. BetMGM’s report indicated it owns a 30% share of the sports betting and online casino gambling industry. Its fourth-quarter revenue net margin in 2022 doubled 2021’s numbers.
“2022 was a year in which we delivered against many key strategic initiatives and achieved several company milestones, including exceeding our financial targets, launching a redesigned BetMGM mobile app, and furthering our commitment to responsible gambling,” Greenblatt said in a statement.
One of those strategic initiatives came during the FIFA World Cup when BetMGM named celebrity athlete Tim Howard brand ambassador.
MGM Resorts International motivated to take over Entain
A 50-50 partnership between MGM Resorts International and Entain Plc. created BetMGM. It’s a seemingly symbiotic pairing, with MGM dominating the entertainment industry and Entain boasting credentials as one of the world’s largest sports betting and online gaming groups.
Entain supplies the technology and services to power BetMGM’s products. However, it appears as though MGM wants to take over Entain.
It wouldn’t be the first time MGM tried a takeover; it failed to do so a few years ago. But with BetMGM surpassing expectations in 2022 and aiming high in 2023, there’s a chance it will happen. Or, at the very least, MGM could make a run at buying out Entain’s half of their existing partnership.
The Offshore Gaming Association (OSGA) reported that MGM regrets the current 50-50 setup of BetMGM with Entain. OSGA’s unnamed source said the company would “do whatever it takes” to make a change. The OSGA wrote:
“According to my source, MGM now is prepared to step up to the plate and ‘do whatever it takes’ to acquire Entain or, at the very least, buy out the North American operations of Entain. It won’t come cheaply, however, since in a 2021 shareholder’s meeting, Entain said that BetMGM has generated five times the revenue it was expecting when it made the deal.”