Four US Operators On Pace to Turn Profitable in 2023 Four US Operators On Pace to Turn Profitable in 2023
Key Takeaways
  • BetMGM, Caesars, DraftKings, and RSI predict profitability by the end of 2023.
  • Q1 2023 earnings calls reveal increasing revenue and lower customer acquisition costs.
  • DraftKings reports 84% YoY revenue increase in Q1 2023, reaching $770 million.
  • RSI’s Q1 2023 revenue totals $162.4 million, a 20% increase from the year-ago quarter.
  • Caesars Digital’s Q1 2023 net revenue reaches $238 million, compared to a net loss in Q1 2022.

Four of the larger operators for online casino gaming and sports betting in the US reported progress in becoming profitable later this year.

Caesars Entertainment, DraftKings, MGM Resorts International, and Rush Street Interactive (RSI) painted a similar picture during their Q1 2023 earnings calls last week — namely that increasing revenue and lower customer acquisition costs have all four on pace to turn a profit sometime in 2023.

The four launched sports betting in Ohio during the quarter, with RSI launching its BetRivers brand and MGM deploying the BetMGM brand it co-owns with Entain. But while RSI declined to jump into the Massachusetts sports betting market during Q1, the other three did not hesitate to launch there.

Here is what Caesars, DraftKings, MGM, and RSI said about raising their earnings before interest, tax, depreciation, and amortization (EBITDA) between now and the end of 2023.