29 July 2024
THIS
ANNOUNCEMENT CONTAINS INFORMATION THAT QUALIFIES AS INSIDE
INFORMATION
BETMGM FIRST HALF 2024
UPDATE
NET REVENUE FROM OPERATIONS
OF $1.0 BILLION IN FIRST HALF OF
20241,2
Momentum accelerating in a
year focused on investment and strategic execution to drive future
growth
BetMGM LLC ("BetMGM"), one of the
leading sports betting and iGaming operators across North America,
jointly owned by Entain plc (LSE: ENT) ("Entain") and MGM Resorts
International (NYSE: MGM) ("MGM Resorts"), is today providing an
update on First Half 2024 ("1H 2024") performance.
Adam Greenblatt, Chief Executive Officer of BetMGM,
commented:
"The first half of this year has
been very important in laying the groundwork for BetMGM's future.
2024 is a year of investment, focusing on improving our customer
experience and stepping up our level of investment in players. We
are encouraged to see this strategy delivering accelerating
momentum. We have exceeded our goals for both acquisition and
retention, which should lead to higher year-over-year revenue
growth for the second half of this year into 2025.
Our online sportsbook players have
been enjoying Angstrom-enabled product capabilities since the start
of the baseball season, and we look forward to players enjoying
this across our wider sports offering leading into the NFL season.
We are also very excited to bring our unique omnichannel
opportunities to players by fully leveraging MGM Resorts' presence
in Las Vegas. Single Account Single Wallet will be an important
driver of the customer experience, with Nevada marking its
completion ahead of the NFL season. Our iGaming business continues
to perform strongly with attractive returns, and to maximize this
strength and momentum, we plan to deploy additional marketing in
the back half of this year. Our execution roadmap, building
momentum and prospects ahead all support our confidence in BetMGM's
strong future."
1H
2024 Update
á 1H
2024 financial performance demonstrating accelerating momentum
through the year
o Net
revenue from operations of $1.0 billion, up 6% versus prior
year1,2
¤ 2Q net
revenue growth of 9% YoY, up from 3% in 1Q
¤ 2Q online
sports betting NGR per active up 16% YoY
¤ 2Q iGaming
average monthly actives growth of 18% YoY, up from 9% in 1Q, with
no new state launches
o EBITDA consistent with expectations of 2024 being an
investment year, supporting customer acquisition and enhanced
player experience initiatives
¤ Encouraging online sportsbook CPAs of FTDs driven by
successful Super Bowl campaign
¤ 1H EBITDA
of -$123 million2
á Established as a leading operator in North America, live in 29
markets with access to 52% of adult
population3
o Continued geographic footprint expansion, with BetMGM launch
of digital sports betting in North Carolina in March and
district-wide in the District of Columbia in July
o 13%
GGR market share in the U.S. and Ontario across Sports Betting and
iGaming4
o Demonstrates stabilization and continued strength in iGaming
with approximately 22% market share5
á Continued focus on operational execution, delivering improved
app, product capabilities, and market-leading partnerships across
both digital sports and iGaming
o Enhanced Sports Product and Technology
¤ Further
integration of Angstrom capabilities with new markets and features
for MLB and back end of NBA seasons, provided by fully in-house
single game parlay ("SGP") and SGP+ products
¤ Improved
player experiences with enhanced betting and SGP+ journeys, landing
pages and new features including live bet tracking
á
Actives who placed an MLB SGP bet this season up
40% YoY6
á Volume
of weekly MLB SGP bets doubled versus last
year6
o Leadership in iGaming
¤ Market-leading jackpots – New Jersey jackpot of over $5
million expected to be the largest regulated U.S. online jackpot
ever paid
¤ Launched
exclusive games and innovative reward mechanics with top suppliers,
including GameCode and White Hat Gaming
¤ Launched
BetMGM Arcade, the home for Ônon-traditional' content including
LuckyTap and Crash-style games
o Best-in-Class Marketing Partnerships
¤ Integration of partnerships with X, Marriott Bonvoy, and
Associated Press
¤ Successful
Super Bowl campaign with citywide takeover of Las Vegas and iconic
commercial featuring Tom Brady, Wayne Gretzky and Vince
Vaughn
¤ Exclusive
ambassadorship with Brian Christopher Slots for all online
regulated markets
á Ongoing commitment to player safety, prioritizing responsible
gambling across our business
o Founding member of the newly established Responsible Online
Gaming Association ("ROGA"), which brings together the largest U.S.
online sports betting and gaming operators to develop and advance
responsible gaming practices
o Expanded the Kindbridge Health program to eight additional
jurisdictions, offering self-excluded individuals referrals for
problem gambling treatment
o Research and funding support via sponsorship for the
International Center for Responsible Gaming
á Award
recognition, including
o EGR
North America's awards for both Employer and Sports Betting
Operator of the Year
o Top
20 for Best Workplaces in New YorkTM by
Fortune
o Hashtag Sports awards for both Best Sports Betting Partnership
(X/Twitter) and Best Communications Strategy
Outlook
á As
announced on December 4, 2023, BetMGM's strategic roadmap assigned
2024 as an investment year, supporting enhanced player experiences
and improved sportsbook product to drive long-term value for
stakeholders
á Coupled with an improving sportsbook offering, and building on
BetMGM's iGaming strength which already delivers over $400 million
contribution annually, expectation of greater than planned
marketing investment in iGaming in 2H this
year7
o Additional investment expected to be funded by bank
debt
á Consistent with expectation of 2024 as an investment year,
expect H2 EBITDA to be similar to H1
á Pipeline of exciting opportunities ahead including key
milestones:
o On
track for Angstrom capabilities to be fully integrated across MLB,
NBA and NFL offerings ahead of 2024 NFL season
o Single Account Single Wallet (SASW) rollout expected to be
completed with Nevada in place prior to the 2024 NFL
season
¤ Enabling
BetMGM customers in MGM Resorts properties, representing 13 million
room nights annually, to sign up at one of BetMGM's eight retail
sportsbooks and return to their home state with the same
wallet
¤ Completing
the integration of player wallets across all BetMGM markets and
empowering the final Las Vegas unlock for BetMGM
á
Investment in our execution roadmap, accelerating
momentum and opportunities ahead all support our confidence in
BetMGM's pathway to $500 million EBITDA in the coming
years
Notes:
1: 1H 2024 net revenue for BetMGM on
a GAAP basis is expected to be approximately $978 million,
including approximately $30 million primarily related to Nevada MGM
Resorts operations for which BetMGM records on a net basis as
BetMGM is considered to be the agent in the Nevada transactions for
GAAP purposes.
2: 1H 2024 net revenue and EBITDA
figures are unaudited.
3: BetMGM operates iGaming and
Online Sports Betting in five markets and Sports Betting only
(combined online and retail) in 24 markets.
4: Consolidated GGR market share
consists of last three months ending May or June 2024 as latest
reported for U.S. sports betting markets where BetMGM was active
(online and retail), last three months ending June 2024 for U.S.
iGaming markets where BetMGM was active, and last three months
ending June 2024 for the Ontario market; internal estimates used
where operator-specific results are unavailable.
5: iGaming GGR market share reflects
the three-month period through June 2024.
6: Engagement data for the MLB
season for the period 3/20/24 to 7/17/24.
7: Contribution Profit reflects Net
Gaming Revenue minus direct costs (excluding depreciation and
amortization and people costs) considered under GAAP presentation
of Gross Profit plus marketing acquisition spend.
Inside
Information
This announcement contains
information that qualifies as inside information within the meaning
of Article 7 of the Market Abuse Regulation (EU) No. 596/2014 as it
forms part of English law by virtue of the European Union
(Withdrawal) Act 2018. Upon the publication of this announcement
via a regulatory information service, this inside information is
now considered to be in the public domain.
Forward-looking
statements
This press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, which involve substantial
risks and/or uncertainties, including those described in the MGM
Resorts International public filings with the Securities and
Exchange Commission. BetMGM has based forward-looking statements on
management's current expectations, assumptions and projections
about future events and trends. Examples of these statements
include, but are not limited to, BetMGM's expectations regarding
its financial outlook (including forecasted net revenues from
operations, EBITDA, and expected investment by Entain and MGM
Resorts in 2024), projected market share position, its expected
growth in new and existing jurisdictions, product capabilities, and
achievement of key milestones. These forward-looking statements are
not guarantees of future performance, conditions or results, and
involve a number of known and unknown risks, uncertainties,
assumptions and other important factors, that could cause actual
results or outcomes to differ materially from those discussed in
the forward-looking statements. Included among the important
factors that could cause actual results to differ materially from
those indicated in such forward-looking statements are: the
significant competition within the gaming and entertainment
industry; BetMGM's ability to execute on its business plan; changes
in applicable laws or regulations, particularly with respect to
iGaming and online sports betting; BetMGM's ability to manage
growth and access the capital needed to support its growth plans;
and BetMGM's ability to obtain the required licenses, permits and
other approvals necessary to grow in existing and new
jurisdictions. In providing forward-looking statements, BetMGM is
not undertaking any duty or obligation to update these statements
publicly as a result of new information, future events or
otherwise, except as required by law. If BetMGM updates one or more
forward-looking statements, no inference should be drawn that it
will make additional updates with respect to those other
forward-looking statements.
Non-GAAP Financial
Information
This press release includes net
revenue from operations, which has not been prepared in accordance
with GAAP. BetMGM believes this presentation, which it uses for its
own analysis of operations, is useful in that it reflects the true
economic performance of the business. If BetMGM presented net
revenue from operations in accordance with GAAP, then BetMGM would
present the revenues associated with its Nevada digital and retail
sports betting operations differently, until such time as BetMGM is
licensed as a Nevada gaming operator. Currently under GAAP, its
calculation of Net Revenue would be on a basis net of operating
costs, such that the GAAP reported Net Revenue would be lower than
the Net Revenue reported herein, with Net Income remaining the
same.
About
BetMGM
BetMGM is a market-leading sports
betting and gaming entertainment company, pioneering the online
gaming industry. Born out of a partnership between Entain Plc (LSE:
ENT) and MGM Resorts International (NYSE: MGM), BetMGM has
exclusive access to all of MGM's U.S. land-based and online sports
betting, major tournament poker, and online gaming businesses.
Utilizing Entain's U.S.-licensed, state-of-the-art technology,
BetMGM offers sports betting and online gaming via market-leading
brands including BetMGM, Borgata Casino, Party Casino and Party
Poker. Founded in 2018, BetMGM is headquartered in New Jersey. For
more information, visit http://www.betmgminc.com/.
About Entain
plc
Entain plc (LSE: ENT) is a FTSE100
company and is one of the world's largest sports betting and gaming
groups, operating both online and in the retail sector. The Group
owns a comprehensive portfolio of established brands; Sports brands
include BetCity, bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds,
Sportingbet, Sports Interaction, STS, SuperSport and TAB NZ; Gaming
brands include Foxy Bingo, Gala, GiocoDigitale, Ninja Casino,
Optibet, Partypoker and PartyCasino. The Group owns proprietary
technology across all its core product verticals and in addition to
its B2C operations provides services to a number of third-party
customers on a B2B basis.
The Group has a 50/50 joint venture,
BetMGM, a leader in sports betting and iGaming in the US. Entain
provides the technology and capabilities which power BetMGM as well
as exclusive games and products, specially developed at its
in-house gaming studios. The Group is tax resident in the UK and is
the only global operator to exclusively operate in domestically
regulated or regulating markets operating in over 30
territories.
Entain is a leader in ESG, a member
of FTSE4Good, the DJSI and is AA rated by MSCI. For more
information see the Group's website: www.entaingroup.com.
About MGM Resorts
International
MGM Resorts International (NYSE:
MGM) is an S&P 500¨ global gaming and entertainment company
with national and international locations featuring best-in-class
hotels and casinos, state-of-the-art meetings and conference
spaces, incredible live and theatrical entertainment experiences,
and an extensive array of restaurant, nightlife and retail
offerings. MGM Resorts creates immersive, iconic experiences
through its suite of Las Vegas-inspired brands. The MGM Resorts
portfolio encompasses 31 unique hotel and gaming destinations
globally, including some of the most recognizable resort brands in
the industry. The Company's 50/50 venture, BetMGM, LLC, offers
sports betting and online gaming in North America through
market-leading brands, including BetMGM and partypoker, and the
Company's subsidiary, LV Lion Holding Limited, offers sports
betting and online gaming through market-leading brands in several
jurisdictions throughout Europe. The Company is currently pursuing
targeted expansion in Asia through the integrated resort
opportunity in Japan. Through its "Focused on What Matters:
Embracing Humanity and Protecting the Planet" philosophy, MGM
Resorts commits to creating a more sustainable future, while
striving to make a bigger difference in the lives of its employees,
guests, and in the communities where it operates. The global
employees of MGM Resorts are proud of their company for being
recognized as one of FORTUNE¨ Magazine's World's Most Admired
Companies¨. For more information, please visit us at
www.mgmresorts.com. Please also connect
with us @MGMResortsIntl on Twitter as well as Facebook and
Instagram.
COMPANY
CONTACTS
BETMGM
WITEK
WACINSKI
witek.wacinski@betmgm.com
SVP Strategy &
Development
News Media
press@betmgm.com
ENTAIN PLC
Investor
Relations
investors@entaingroup.com
MGM
RESORTS
Investment Community
achapman@mgmresorts.com
ANDREW CHAPMAN
Director, Investor
Relations
News Media
media@mgmresorts.com
BRIAN AHERN
Executive Director, Media
Relations