Prominent US igaming and sports betting operator, BetMGM, a joint venture between MGM Resorts International and Entain plc, reported estimated net revenue of $163 million for Q1 2021 during an Investor Day presentation last week.
To put the Q1 2021 performance in perspective, the figure represents 90% of the full year revenue for 2020, according to Chief Executive Officer Adam Greenblatt.
Annually, Q1 2021 revenue increased 430% over Q1 2020. Sequentially, the first quarter rose 114% over Q4 2020.
The company also declared itself the number 1 igaming operator across all US jurisdictions in terms of Gross Gaming Revenue (GGR) for the three-month period ending February 2021.
In terms of online sports betting, BetMGM made significant strides forward, and it estimates that it holds one of the top three positions among all operators in the country.
“BetMGM has demonstrated strong momentum, building a leading position in iGaming and on track to be the number two operator across sports betting and iGaming in the U.S.,” said Greenblatt in a press release announcing the presentation.
A Bright Future for US Sports Betting and iGaming
BetMGM announced that it expects the long-term total addressable market in the US for sports betting and igaming to reach $27.5 billion. Adding in Canada bumps up the expectation for North America to $32 billion.
Broken out, those numbers represent approximately 65% of the adult population in the US contributing $90 each to online sports revenue, and 35% of the adult population spending $160 each on igaming.
On the strength of those expectations BetMGM forecasts it 2022 net revenue to exceed $1 billion. As a result, MGM Resorts and Entain will invest $450 million in BetMGM in 2021 following the $210 million provided through the end of 2020.
The company also highlighted a number 1 market position in Michigan, Colorado and New Jersey as a demonstration of its ability to provide a competitive offering in states with different market conditions.
In Michigan, BetMGM serves the state in all three verticals (online sports betting, casino games and poker) and was part of the initial launch in the market.
In Colorado, where only online sports betting is allowed, the company estimates it holds the top spot. In New Jersey, where three verticals are offered, BetMGM was a late entrant to the market but has managed to achieve the largest market share.
The company sees its future success tied to its quality on-property experiences and plans to leverage its competitive advantage driven by its proprietary technology to provide an exceptional user experience.
As is the case with many successful technology companies, BetMGM has its eyes on the future with plans to increase the speed of its platform while improving its design and usability.
The company is also intent to provide its customers a highly personalized experience which has shown to increase engagement.
“The unique partnership of MGM Resorts’ leading brand and loyal customer base and Entain’s proprietary technology platform gives us the best resources to win in this market,” Greenblatt concluded.