BetMGM, a US sports betting and iGaming brand, released some details regarding its first quarter financial performance ahead of the official release and press conference on April 28, 2021. The company jointly owned by MGM Resorts International and Entain released the figures during its investor day event.
Exceptional First Quarter
BetMGM announced as part of the investor day that its first quarter 2021 revenue reached $163 million, representing 90% of the revenue generated by the brand for the entire 2020, $178 million. Looking into the future with the current rate of growth, BetMGM expects to be well on course to deliver $1 billion in revenue in 2022.
“BetMGM has secured market access and demonstrated our ability to launch on day one in an effective way, so we will be there on day one wherever possible. The business is performing well ahead of expectations in both sports and gaming. All of this supports our confidence in achieving $1bn of revenue next year.”Adam Greenblatt, CEO, BetMGM
The optimistic forecast is related to the continuous acceleration of sports betting and iGaming markets across all regulated US jurisdictions, as the company believes the total long-term addressable market including Canada to be approximately $32 billion, and estimates its leading position on the market will grant the company long-term market share of approximately 20-25%.
“The U.S. market is shaping up to be even larger and more exciting than we originally envisaged, and we now believe it will be worth $32 billion, including Canada. Furthermore, the outstanding progress that the team has made so far means that we now expect to achieve 20-25% U.S. market share long term.”Adam Greenblatt, CEO, BetMGM
Gaming Markets Continue to Accelerate
Monthly gross gaming revenue (GGR) at BetMGM increased from September 2020 to March 2021 four times, while the brand doubled its market share since October 2020 and it is now ranked No.1 in the US iGaming vertical holding a market share of 23% and No.3 in sports betting, while the brand is on course to occupy the overall iGaming and sports betting No.2 spot.
At the moment, BetMGM is ranked first in both sports betting and online gaming in Michigan, in online sports betting in Colorado and in iGaming in New Jersey. The brand has market access to 24 states and is live in 12 of them, a significant expansion compared to the 3 states it started with at the beginning of 2020.
In addition to an investment by its parent companies to the amount of approximately $450 million, incremental to the $210 million already invested until the end of 2020, BetMGM entered into some high-level partnership agreements, among which the Buffalo Wild Wings restaurant chain, IMG ARENA and The Detroit Tigers MLB franchise.