The joint sports wagering enterprise, BetMGM, owned by Entain and MGM Resorts, has announced initial financial results for the 2022 fiscal year, estimating total revenue of $1.44 billion.
While BetMGM had originally predicted revenue of $1.3 billion, this number was recently adjusted upward. The company also anticipates an EBITDA deficit of $440 million, consistent with earlier estimates. BetMGM credits its financial achievements to a number of favorable elements, such as improved gross gaming margins, a 21% reduction in client acquisition expenses year-on-year in mature markets thanks to data-driven marketing initiatives, and an enhanced player incentive program.
Specifically, BetMGM emphasized that its online sports wagering net revenue margin increased twofold in the final quarter of 2022 compared to the corresponding period in 2021.
Moving forward, BetMGM projects net revenue to reach between $1.8 billion and $2 billion in 2023.
Adam Greenblatt, BetMGM’s Chief Executive Officer, conveyed his contentment with the company’s advancements, remarking, “The BetMGM team’s concentration, implementation, and commitment to our plan remain crucial to our accomplishments. We attained several notable benchmarks in 2022, including surpassing our financial objectives, introducing our revamped BetMGM mobile application, and advancing responsible gaming pledges.”
He continued, “With our distinctive and strategic approach to expansion, coupled with the continuous backing from our two stakeholder groups, we remain highly assured in realizing our aim of dominating North America’s iGaming and sports betting sectors while generating $1.8 billion to $2 billion in net revenue in 2023, and we are optimistic that BetMGM will attain EBITDA profitability in the latter half of 2023.”
BetMGM appears quite pleased with the results of 2022, despite their anticipated negative earnings before interest, taxes, depreciation, and amortization (EBITDA). This situation is currently widespread in the online sports wagering industry, as companies like DraftKings are also investing heavily to acquire new users.