As we roll toward the end of the first quarter of 2023, BetMGM is getting closer to profitability.
The online casino and sportsbook provider expects to be EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) positive in the second half of 2023.
A big reason for that projection from BetMGM is the success of its online casino platform.
In Michigan, it is clear that BetMGM is the online casino leader and aiding in its business success.
Online casino leading BetMGM toward profitability
BetMGM reported $1.44 billion in 2022 revenue. That was well above the $1.3 billion it originally forecast.
BetMGM also reported $440 million in EBITDA losses for 2022, which was in line with its projections.
However, the company is now forecasting EBITDA growth in the second half of 2023. It anticipates $1.8-2 billion in net revenue behind the strength of its online casino product.
“BetMGM is the leader in what is financially the most important segment in the nation, iGaming, and is making overall progress toward its profitability,” said CEO and President of MGM International, Bill Hornbuckle, during the MGM International Q4 investor call. “It gives us every reason to believe it should hit its target this year, starting to make profitability in the second half of the year.”
Around North America, BetMGM accounts for 30% of the online casino revenue profit share. It has just 13% of the legal online sports betting market.
“iGaming states have all beat our expectations and become profitable quickly,” BetMGM CFO Gary Deutsch told Legal Sports Report.
Michigan is BetMGM’s top online casino performer
While online sports betting is legal in over two dozen states, online casinos are legal in just six states currently.
BetMGM has its solid footprint throughout the U.S. and North American iGaming market, but Michigan is its most dominant.
Through just over two full years, BetMGM Michigan has amassed just under $1.1 billion in online casino revenue. That accounts for 37.2% of the Michigan online casino market share and is more than double the revenue of its nearest competitor.
“For the four states in the U.S. that we had long-ago launches in iGaming— those are all full year contribution positive for us.” Deutsch said. “All the states that (have) combined sports and iGaming are contribution positive.”
By comparison, BetMGM accounts for 35.9% of the online casino market share in Pennsylvania with just under $1.4 billion in revenue.
In New Jersey, BetMGM has 26.1% of the online casino market share with just under $1.5 billion in lifetime revenue.
In October of 2022, BetMGM became the first online casino in Michigan to record more than $50 million in monthly revenue. It has now hit that mark for four consecutive months following $52.8 million recorded in January 2023.
Since September 2021, BetMGM has recorded at least $40 million in monthly online casino revenue. No other competitor has ever reached $30 million in monthly revenue.
Why BetMGM is atop Michigan online casinos
BetMGM has always held down the top spot when it comes to online casinos in Michigan.
With a well-prepared launch when Michigan waved the green flag on Jan. 22, 2021, BetMGM has been the pace setter from Day 1.
Currently, no other online casino can compete with BetMGM’s gaming library. It has more than 1,800 online casino games, more than double any other online operator in Michigan.
Last week, BetMGM announced an exclusive partnership with Aristocrat for even more games to soon appear on BetMGM’s online platform. Aristocrat was approved for a supplier license by the Michigan Gaming Control Board on Tuesday.
MGM International stock continuing to climb
As of Wednesday morning, MGM Resorts International sits at $42.66 in stock value.
The stock value has shown continued growth over the past six months. In September, it held a value of $32.86.
MGM International’s stock has increased by 19.79% over the past three months and 28.18% since Jan. 1.
Over the past three years, MGM’s stock peaked at $50.37 at the end of October 2021.