LAS VEGAS, Jan. 19, 2022 /PRNewswire/ -- BetMGM, LLC
("BetMGM"), one of the leading sports betting and iGaming operators
across the U.S., jointly owned by MGM Resorts International (NYSE:
MGM) ("MGM Resorts") and Entain plc (LSE: ENT) ("Entain"), is today
providing an update on performance and outlook for 2022.
- BetMGM is achieving market share in line with its long-term
target of 20% - 25% in U.S. sports betting and iGaming
-
- Number 2 operator for sports betting and iGaming across the
markets in which it operates with a 24% market share for the three
months to November 2021
- Remains market leader in iGaming with 30% market share for the
three months to November 2021 in the
markets in which it operates
- Live in 19 jurisdictions – 4 iGaming, 19 sports betting
-
- Expects to reach approximately 40% of the U.S. adult population
with 2 further jurisdiction launches as well as launch in
Canada and Puerto Rico in the coming months
- Strong financial performance in FY 2021:
-
- Net revenue from operations expected to be approximately
$850 million1, ahead of
management expectations and up nearly 5 times from prior year
- Same-state growth in net revenue from operations up 140% from
prior year
- FY 2021 EBITDA loss expected to be in the range of $420 – $440
million, in line with expectations
- Cost per acquisition was in line with management's forecast,
which reaffirms the expectation of achieving a long-term
acquisition cost of $250
- Player values in line with expectations, supporting long-term
total addressable market opportunity in North America of approximately $32 billion
- FY 2022 net revenue from operations expected to be over
$1.3 billion
- Continued growth will be supported by investment in additional
markets and product deployments:
-
- Expecting to launch online sportsbooks in Illinois and Louisiana in the first quarter as well as
retail sportsbooks in Puerto Rico
and both online sportsbook and iGaming in Ontario later this year
- Expanding our first-to-market Bingo product and the BetMGM
Racing app into additional states while continuing to enhance our
products in existing markets
- Continuing to employ our returns-driven marketing strategy
while further incorporating the MGM Resorts loyalty program into
all aspects of our offering
- Maintaining our market-leading customer service while
prioritizing responsible gaming across all facets of our
business
- BetMGM anticipates reaching positive EBITDA in 2023, based on
its current assumption of future live markets
-
- We have achieved positive contribution in several states, some
within one year of launch, driven by our prudent, data-driven
marketing strategy and by leveraging our omni-channel offering
- Wholly supportive of BetMGM's continuing success, strong
performance and market leadership, the investment by MGM Resorts
and Entain is expected to be approximately $450 million in 2022
-
- This would bring the combined total investment from MGM Resorts
and Entain to approximately $1.1
billion since launch in 2018
Conference Call:
BetMGM will host a conference call at
10:00 a.m. Eastern Time today, which
will include an overview of its results, followed by a brief
question and answer session. The call will be accessible via the
Internet through
https://www.webcaster4.com/Webcast/Page/2832/44324 or by
dialing:
U.S. (Toll Free): +1 (877)
871-3172
U.K.: +44 (0) 20 3147 4901
International: +1 (412) 902-6603
Conference call access code: 3122358
The live webcast and replay will also be accessible at
http://investors.mgmresorts.com/investors/events-and-presentations/.
BetMGM 2022 Investor Day:
BetMGM will host an investor
day for analysts and investors during May to provide further
updates on financial performance, operational plans and outlook.
Details of the event, including format and registration, will be
made available via press release in due course.
Adam Greenblatt, Chief
Executive Officer of BetMGM commented, "The highly
talented team at BetMGM is executing our plan with purpose, passion
and discipline, and our results speak for themselves. After only 3
years into our journey, we have cemented the credibility of
BetMGM's leadership ambition in sports betting and iGaming in the
U.S. 2022 is a critical year, where the leading national operators
will reach critical mass, paving the way for the next phase of the
sector's financial evolution. With the support of our shareholders,
our technology and data platform, brand and omni-channel strategy,
we look to the future with confidence."
Bill Hornbuckle, Chief
Executive Officer and President of MGM Resorts commented,
"BetMGM has made significant progress in gaining a strong foothold
in the rapidly growing U.S. sports betting and iGaming market,
solidifying its position as the number two operator nationwide in
2021. These achievements are underpinned by the structural
advantages offered through MGM Resorts and Entain as well as a
best-in-class team at BetMGM led by Adam. As we look to 2022, we
are beyond excited about further integrating BetMGM with our MGM
loyalty program and land-based operations to elevate the BetMGM
player experience. We are more confident than ever about BetMGM's
future prospects and remain committed to its continued
success."
Jette Nygaard-Andersen, Chief
Executive Officer of Entain commented, "BetMGM is built on
Entain's best in class technology and capabilities alongside MGM
Resorts iconic brand and assets. Its fantastic success so far
demonstrates that BetMGM has really captured the excitement of
customers across the states where it operates. BetMGM continues to
outpace the market as a result of its unique assets and go to
market approach, broad and highly engaging range of in-house
products and digital marketing capabilities. Given the long-term
opportunity and shareholder value potential in winning in this
market, we are very happy to support BetMGM in this investment
phase of its growth journey and we are absolutely committed to
providing BetMGM with what it takes to win."
Notes:
1: 2021 net revenue for BetMGM on a GAAP basis is expected to be
approximately $813 million, which
includes approximately $52 million
related to Nevada MGM operations for which BetMGM records on a net
basis as BetMGM is considered to be the agent in the Nevada transactions for GAAP purposes.
Forward-looking statements
This press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, which involve substantial
risks and/or uncertainties, including those described in the MGM
Resorts International public filings with the Securities and
Exchange Commission. BetMGM has based forward-looking statements on
management's current expectations, assumptions and projections
about future events and trends. Examples of these statements
include, but are not limited to, BetMGM's expectations regarding
its financial outlook (including forecasted revenues from
operations, EBITDA losses, and amounts expected to be invested by
MGM Resorts and Entain in 2022), projected market share position,
and its expected growth in new and existing jurisdictions. These
forward-looking statements are not guarantees of future
performance, conditions or results, and involve a number of known
and unknown risks, uncertainties, assumptions and other important
factors, that could cause actual results or outcomes to differ
materially from those discussed in the forward-looking statements.
Included among the important factors that could cause actual
results to differ materially from those indicated in such
forward-looking statements are: the significant competition within
the gaming and entertainment industry; BetMGM's ability to execute
on its business plan; changes in applicable laws or regulations,
particularly with respect to iGaming and online sports betting;
BetMGM's ability to manage growth and access the capital needed to
support its growth plans; and BetMGM's ability to obtain the
required licenses, permits and other approvals necessary to grow in
existing and new jurisdictions. In providing forward-looking
statements, BetMGM is not undertaking any duty or obligation to
update these statements publicly as a result of new information,
future events or otherwise, except as required by law. If BetMGM
updates one or more forward-looking statements, no inference should
be drawn that it will make additional updates with respect to those
other forward-looking statements.
Non-GAAP Financial Information
This press release includes projected net revenue from operations,
which has not been prepared in accordance with GAAP. BetMGM
believes this presentation, which it uses for its own analysis of
operations, is useful in that it reflects the true economic
performance of the business. If BetMGM presented net revenue from
operations in accordance with GAAP, then BetMGM would present the
revenues associated with its Nevada digital and retail sports betting
operations differently, until such time as BetMGM is licensed as a
Nevada gaming operator. Currently
under GAAP, its calculation of Net Revenue would be on a basis net
of operating costs, such that the GAAP reported Net Revenue would
be lower than the Net Revenue reported herein, with Net Income
remaining the same.
About BetMGM
BetMGM is a market leading sports
betting and gaming entertainment company, pioneering the online
gaming industry. Born out of a partnership between MGM Resorts
International (NYSE: MGM) and Entain Plc (LSE: ENT), BetMGM has
exclusive access to all of MGM Resorts' U.S. land-based and online
sports betting, major tournament poker, and online gaming
businesses. Utilizing Entain's U.S.-licensed, state of the art
technology, BetMGM offers sports betting and online gaming via
market leading brands including BetMGM, Borgata Casino, Party
Casino and Party Poker. Founded in 2018, BetMGM is headquartered in
New Jersey. For more
information, visit http://www.betmgminc.com/.
About MGM Resorts International
MGM Resorts
International (NYSE: MGM) is an S&P 500® global entertainment
company with national and international locations featuring
best-in-class hotels and casinos, state-of-the-art meetings and
conference spaces, incredible live and theatrical entertainment
experiences, and an extensive array of restaurant, nightlife and
retail offerings. MGM Resorts creates immersive, iconic experiences
through its suite of Las
Vegas-inspired brands. The MGM Resorts portfolio encompasses
32 unique hotel and gaming destinations globally, including some of
the most recognizable resort brands in the industry. MGM Resorts's
50/50 venture, BetMGM, LLC, offers U.S. sports betting and online
gaming through market-leading brands, including BetMGM and
partypoker. MGM Resorts is currently pursuing targeted expansion in
Asia through the integrated resort
opportunity in Japan. Through its
"Focused on What Matters: Embracing Humanity and Protecting the
Planet" philosophy, MGM Resorts commits to creating a more
sustainable future, while striving to make a bigger difference in
the lives of its employees, guests, and in the communities where it
operates. The global employees of MGM Resorts are proud of their
company for being recognized as one of FORTUNE® Magazine's World's
Most Admired Companies®. For more information, please visit us at
www.mgmresorts.com. Please also connect with us @MGMResortsIntl on
Twitter as well as Facebook and Instagram
About Entain plc
Entain plc (LSE: ENT) is a FTSE100
company and is one of the world's largest sports-betting and gaming
groups, operating both online and in the retail sector. The Group
owns a comprehensive portfolio of established brands; Sports Brands
include bwin, Bet.pt, Coral, Crystalbet, Eurobet, Ladbrokes, Neds
and Sportingbet; Gaming Brands include CasinoClub, Foxy Bingo,
Gala, Gioco Digitale, Ninja Casino,
Optibet, partypoker and PartyCasino. The Group owns proprietary
technology across all its core product verticals and in addition to
its B2C operations provides services to a number of third-party
customers on a B2B basis. The Group's joint-venture with MGM
Resorts International, BetMGM, is a leader in sports-betting and
iGaming in the US. Entain provides the technology which powers
BetMGM and exclusive games and products, specially developed at its
in-house gaming studios. The Group is tax resident in the UK with
licenses in a total of 27 regulated markets. Entain is a leader in
ESG, a member of FTSE4Good, the DJSI and is AA rated by MSCI. The
Group has set a science-based target, committing to be carbon net
zero by 2035 and through the Entain Foundation supports a variety
of initiatives, focusing on safer gambling, grassroots sport,
diversity in technology and community projects. For more
information see the Group's website: www.entaingroup.com
BETMGM CONTACT
ELISA
RICHARDSON
Head of Public Relations &
Communications
press@betmgm.com
MGM RESORTS CONTACT
Investment
Community
CATHERINE PARK
Executive Director, Investor
Relations
cpark@mgmresorts.com
News Media
BRIAN
AHERN
Executive Director, Media
Relations
media@mgmresorts.com
ENTAIN CONTACT
Investment
Community
DAVID
LLOYD-SEED
Group Director of Investor Relations & Corporate
Communications
investors@entaingroup.com
DAVINA HOBBS
Head of Investor Relations
investors@entaingroup.com
News Media
TESSA
CURTIS
Head of Media Relations
tessa.curtis@entaingroup.com
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SOURCE BetMGM; MGM Resorts International