After its recent Q1 trading update, BetMGM LLC, owned by both MGM Resorts International and Entain plc, delivered a business update revealing its key strategies and future expectations as it ventures into the US sports betting market.
One of the main strategies outlined in the company’s presentations was that it would target a long-term market share ranging between 20% and 25% of the fast-growing US sports betting and online casinos.
The company also indicated that it is only of the industry’s best performers as it secured a 23% market share in three months ending February 2021. With this performance, it is ranked number two in the US igaming and sports betting market.
BetMGM projections over the coming year show that the company expects to gain approximately $1bn in net revenue from activities in 2022. Moreover, investment by MGM Resorts and Entain is expected to be about $450 million. It will be an addition to the $210 million already invested by the end of 2020.
Adam Greenblatt, the BetMGM CEO, indicated that BetMGM had done its best to prove its strong momentum by cementing a top position in igaming. He added that the company is on the right track to becoming one of the top operators in sports betting and igaming in the lucrative US market.
Greenblatt continued to note that the US market is taking shape to become a large and an exciting market than the company initially thought of. Greenblatt states that they believe the market will be worth $32bn, Canada included. Moreover, the remarkable progress made by the company means that they can anticipate gaining a 20-25% US market share in the long term. He also added that the fantastic partnership with Entain and MGM Resorts and the resources they offer is what helps in winning over the market.
Jette Nygaard-Andersen, Entain CEO, said in the opening presentation that partnership with MGM Resorts helps ensure that it has the best resources throughout the US market. To maintain its market leader position, more investment is required as this will also pave the way for profitability. According to the CEO, they are always ready to do whatever it takes to achieve their goal.
On that note, he added that Entain plans to invest approximately $450 million in BetMGM on top of what has already been invested. There is an incredible opportunity in the US, and there is no other better way to invest and ensure the company delivers better returns to its stakeholders, he noted.
Bill Hornbuckle, MGM Resorts CEO and President, also told investors that the coming together of MGM Resorts and Entain was a straightforward recipe that guaranteed success.