Following a successful Q1 of 2023, BetMGM was projecting profitability by the second half of the year.
Well, that came a little sooner than expected.
On Wednesday, BetMGM issued its financials for the first half of 2023 and reported a positive EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) during Q2 of the year.
Getting to a point of profitability has been a difficult pursuit for some online gambling operators. However, BetMGM’s success in the online casino market has been a helpful springboard to this point.
That certainly is the case here in Michigan, where the operator is the dominant iGaming leader.
BetMGM on track for nearly $2 billion in 2023 revenue
It was all pretty positive news for BetMGM from their H1 report on Wednesday.
Along with the positive EBITDA in Q2, BetMGM has $944 million in net revenue for the first half of 2023. That keeps them on projection for $1.8-2 billion of revenue for the fiscal year.
“I am pleased with the significant progress we have made during the first half of 2023 as we continue our strong growth and remain on our path to profitability,” Chief Executive Officer of BetMGM Adam Greenblatt said in a press release. “Our financial guidance for the year remains on track – we expect to deliver $1.8 to $2.0 billion in full year revenue, as well as to be EBITDA positive in the second half of 2023. In fact, we have already achieved positive EBITDA for the full second quarter of this year. Our focus remains on building a sustainable, scalable and returns focused business with leading products that our players enjoy responsibly. We look forward to the remainder of the year, buoyed by ongoing product improvements, tremendous support from our shareholders providing access to new assets and partnerships, and – above all – our extraordinary team at BetMGM.”
Along with the revenue reports, BetMGM says it will be self-sustaining in the second half of the year, not requiring further equity investment beyond what it has previously allocated.
BetMGM taking up 27% of online casino market
BetMGM reported that it owns 27% of the online casino market through Q2 of 2023.
Here in Michigan, that number is far greater.
BetMGM Michigan owns 36.1% of the online casino revenue market. It sits at over $1.3 billion in revenue for its lifetime here in the state.
The success of its online casinos across the country are what led BetMGM to feel good about gaining profitability at the end of 2022.
“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.
While BetMGM has access to nearly half of the adult populations for online sports betting, being live in 26 jurisdictions, the same can’t be said of iGaming.
BetMGM’s online casino is only available in Michigan, Pennsylvania, New Jersey and West Virginia. As more states add iGaming, BetMGM seems certain to pile on the revenue and add to its already positive portfolio.
BetMGM optimizes sportsbook costs
BetMGM has settled into its role as the third most-used online sports betting platform.
Trailing the likes of FanDuel and DraftKings, BetMGM has 11% of the nation’s sports betting market share.
In 2023, BetMGM Michigan has 19% of the online handle share in the state. They also account for 16.9% of the online sportsbook revenue share in the state.
Aiding in the profitability has been BetMGM’s efforts to optimize player bonuses. Cutting back on bonuses and advertising has been a focus, which appears to be a successful choice.
In Michigan, bonus and promo allocations have dropped from $26.8 million through the first six months of 2022 to $15.8 million in the first six months of 2023.
Between the sports betting and online casino market shares, BetMGM has 18% of the overall online gambling market. That number should grow as more stats opt to dive into the online casino industry, which BetMGM has proven it has a knack for.
