We’ve demonstrated our ability to enter into partnerships to leverage new market opportunitiesEntain, reported that BetMGM, its joint venture with MGM Resorts International, surged to become the number two operator for sports betting and iGaming in the US over the last three months.
Meanwhile, Entain projects that earnings before interest, taxes, depreciation and amortization (EBITDA) for the full-year 2021 will range from $1.18 billion to $1.25 billion, ahead of current consensus.
According to a Q2 2021 trading update, BetMGM grew its overall share of the iGaming market in the whole of the US to 29% between April 1 and June 30, up from the 23% reported in Q1. In markets in which BetMGM operates, the JV held a 24% stake, up from 19% in mid-April.
“Our market share has benefited slightly in the last couple of months from seasonality in the sports calendar,” CFO Rob Wood said during a 2Q2021/1H2021 trading update on July 8. “iGaming was a greater piece of the mix, but nonetheless we’re very pleased to see that our continued operational progress is being rewarded with market share gains.
“Looking at Q2 trading, we clearly benefited from record new customer recruits during March Madness and increased M-life Reward program activations as COVID-19 restrictions have eased. We’ve also benefited from further product launches and enhancements.”
Wood said Q2 net gaming revenue (NGR) was ahead of Q1 despite seasonality. He said Entain projects NGR from BetMGM for the first half of the year will total around $350 million.
CEO Jette Nygaard-Andersen added that Entain had “plenty of runway” to grow its existing markets, pointing out that “97% of our NGR [is] growing at 10% or more and with internet penetration still low in most of our markets.”
“We’ve demonstrated our ability to enter into partnerships to leverage new market opportunities and provide new opportunities for growth, such as in the US with BetMGM,” he added.
BetMGM’s sportsbook is currently live in 10 states: Colorado, Indiana, Iowa, Michigan, Nevada, New Jersey, Pennsylvania, Tennessee, Virginia and West Virginia.
The company operates online poker rooms in three states—BetMGM Michigan, BetMGM NJ and BetMGM PA—on a platform hosted by the partypoker US network.
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BetMGM is currently the top Michigan online casino operator. Last May, it maintained its lead position in terms of market share and total revenue, which were 38% and $36.1 million. But both figures were down slightly from April, when the company had a 39% share and made $36.8 million.
In New Jersey, where BetMGM shares a player pool with partypoker and Borgata, the partners held a 32% market share in May, enough to hold second place in terms of market share for the sixth consecutive month. Revenue was $769k in May, which was down 25% from May 2020 but also represented a 3% increase month-to-month.
BetMGM also shares a player pool with Borgata on the partypoker US network in Pennsylvania, but it’s a newbie in the state. Operating under the Hollywood Casino license, BetMGM recorded $279k in revenue in May, its first full month in the market.