According to BetMGM's first half financial report, net revenue for the first half of 2024 was $1 billion, up 6% from the same period the previous year.
The operator also stated that, for the January–June period, its North American market share was 13% based on the gross gaming revenue (GGR) share for iGaming and online sports betting in the US and Ontario, Canada. With net sales up 9% year over year and 3% from the first quarter, T here were some signs of growth for the gaming company in the second quarter. Net revenue from sports betting and iGaming increased by 16% and 18% in the second quarter, respectively.
These gains reflect benefits accumulated after Entain Plc (OTC: GMVHY) acquired Angstrom Sports in July 2023.
"Our online sportsbook players have been enjoying Angstrom-enabled product capabilities since the start of the baseball season, and we look forward to players enjoying this across our wider sports offering leading into the NFL season,” said BetMGM CEO Adam Greenblatt in a statement.
Angstrom is a source of data and analytics that uses predictive modeling to develop sophisticated forecasting and pricing tools. One of the biggest online sportsbook companies in the US, BetMGM, is owned by Entain in half. The remaining 50% is owned by MGM Resorts International (NYSE: MGM).
BetMGM Makes Some Headway, But Competition Is Still Tough
Although BetMGM reported a $123 million loss in profits before interest, taxes, depreciation, and amortization (EBITDA) in the first half of 2024, Greenblatt pointed out that the operator exceeded its targets for client acquisition and retention during that time.
The client acquisition/retention commentary is important at a time when competitors DraftKings and FanDuel seem to be expanding their long-standing duopoly in the domestic online sports betting sector, which has seen those two operators control more than 70% of the total market.
With a 22% market share in North America, BetMGM has found some traction in the iGaming industry. The operator anticipates faster revenue growth in the second half of this year and into 2025, which may be influenced by online casinos. BetMGM has an edge in iGaming since some research indicates that iGaming enhances the land-based venues operated by casino operators. MGM boasts one of the biggest rewards programs and one of the largest portfolios of US casinos.
However, just six states allow online casinos: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia. This suggests that additional legislation is required in the coming years to encourage the expansion of this type of gambling.
2024 is dubbed the "Year of Investment" by BetMGM
As previously mentioned by the operator, BetMGM sees 2024 as an investment year.
“Coupled with an improving sportsbook offering, and building on BetMGM’s iGaming strength which already delivers over $400 million contribution annually, expectation of greater than planned marketing investment in iGaming in 2H this year,” according to the statement.
The gaming corporation predicted that bank debt would be used to finance new investments, while predicting second-half EBITDA that would be similar to that of the first six months. BetMGM stated that it is still optimistic about achieving $500 million in EBITDA "in the coming years."
