26th Jan 2023 14:52
(Alliance News) - Entain PLC on Thursday said BetMGM LLC revenue rose in 2022, as the company targets positive earning for the 50%-owned joint venture in 2023.
The London-based gaming and sports-betting firm said BetMGM net revenue was USD1.44 billion, up 69% from about USD850 million in 2021, and ahead of its prior guidance of USD1.3 billion. The revenue increase was driven by higher gross gaming margins due to improvements to both customer experience and products, Entain said.
The company said BetMGM is well positioned to deliver 2023 net revenue of between USD1.8 billion and USD2 billion.
BetMGM is a North American sports betting and gaming entertainment company operated as a joint venture between Entain and MGM Resorts International, with each company owning half.
BetMGM suffered a loss before interest, tax, depreciation and amortisation of USD440 million in 2022, which Entain said is in line with prior guidance. BetMGM is looking to be Ebitda positive in the second half of 2023, Entain said.
Entain said BetMGM has a 30% market share in iGaming. It has a 13% share in sports betting, with a 20% sports betting share in markets where BetMGM "was live on day one".
BetMGM is active in 25 jurisdictions in the US, with access to about 45% of the adult population, and is also operating in Ontario, Canada. In 2022, the company launched six new markets in New York, Louisiana, Illinois, Ontario, Kansas, and Maryland.
BetMGM Chief Executive Officer Adam Greenblatt said: "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."
Entain shares were up 0.1% trading at 1,533.50 pence per share on Thursday afternoon in London. MGM Resorts International was down 0.5% at USD40.08 in New York.
By Harvey Dorset, Alliance News reporter
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