The BetMGM app hit profitability for the first time in the second quarter of 2023, but there is still work to be done before MGM Resorts CEO Bill Hornbuckle is happy with it.
“Our product is not where we want it to be,” Hornbuckle said on MGM’s second-quarter earnings call Wednesday. “I think the moves that we’re now making, though, with Entain, our partner, with the moves we’re going to make with Angstrom as an onboarded partner for BetMGM will get us to a place where we’ll be back in that game in a meaningful way and hopefully begin to gain some share back.”
BetMGM expects a profitable second half despite increased marketing in the third quarter for NFL betting.
June led to BetMGM profitability
BetMGM announced it hit profitability, but did not break out specific figures.
MGM listed its quarterly operating loss for BetMGM at $22.5 million, but MGM reports numbers a month behind. So that figure actually represents March through May instead of the traditional Q2 of April through June.
That suggests June was a strong month.
Hornbuckle said gross margin was a little over 9% for the quarter. The goal is to break 10% once Angstrom is fully deployed, he added.
Single wallet live in 14 markets
Hornbuckle noted that single-wallet is now live in 14 markets out of its 26 live, which cover more than 50% of MGM’s database.
That should help boost acquisition and engagement metrics as players with players able to use the same app between those states, Hornbuckle said.
BetMGM acquires 30,000 customers a month who have had some sort of relationship with MGM. Half of those come from Nevada, he added.
BetMGM profit despite share slipping
BetMGM share for iGaming and sports betting slipped in the second quarter, but profitability was still possible given higher hold and better spending, Hornbuckle said.
He noted that sports betting customers tend toward profitability in 24 to 36 months, with iGaming customers “hopefully” a little sooner than that.
Cost per acquisition is also coming down to below $300 from more than $400 before, he added. That shows active maturity about who BetMGM is marketing to and how big promotions are.