Satisfied with its iGaming position in the US, BetMGM is focused on its sports betting product.
During Entain’s Q1 earnings call Tuesday, CEO Jette Nygaard-Andersen detailed several strong growth metrics for BetMGM, which Entain owns in a joint venture with MGM Resorts. The primary metric Nygaard-Andersen highlighted was that Q1 BetMGM net gaming revenue hit $470 million, up 76% year-over-year.
Entain executives did not update the full-year BetMGM revenue guidance of $1.8 billion to $2 billion. Executives believe the US sportsbook will deliver profitability later this year. Entain shares were up 7% Tuesday, while MGM Resort shares were up slightly.
“All key metrics for customer economics, player retention and cohort maturity continue to support our expectation to deliver positive EBITDA in the second half of this year,” Nygaard-Andersen said. “We continue to work with the BetMGM team to further improve the offer and drive further engagement, we are confident in our plans for this year and our ambitions of a 20% to 25% share in this exciting market.”
Focused on sports betting product
Nygaard-Andersen said Entain remains happy with BetMGM’s No. 1 share of US iGaming at 28% and is focused on increasing its share of sports betting in the US. She said the company continues to sit at No. 3 in combined sports betting and iGaming share and will roll out a single wallet this year.
BetMGM saw its in-play betting as a percentage of handle grow, as well as parlay and same-game parlay bet counts. Nygaard-Andersen also said “there is more opportunity” in those areas.
“We’re super focused on our sports product, continuing to grow that, and I think the testament of growth in same state is really pleasing,” Nygaard-Andersen said. “We continue to be laser-focused on the sports product. I really see that as an enormous opportunity for us.”
Similar sentiments came from MGM Resorts fourth-quarter earnings call in February.
Same state growth for BetMGM
Along with the overall first-quarter growth, which included three market launches, same-state growth for online sports betting hit 100%.
“That’s another killer number for us when we look at the business,” Nygaard-Andersen said.
She said the operator is optimizing bonuses to “reward and retain valuable customers.”
“Our actives are growing. Our player economics are very strong,” she said.