The 2024 NFL season represents a pivotal moment for BetMGM as it pushes to solidify its place among the leading US sports betting operators.
LSR spoke with BetMGM CEO Adam Greenblatt about the array of investments and strategic choices that have set up the sportsbook for the season ahead.
From advanced tech integrations following Entain’s acquisition of Angstrom Sports, which now powers upgraded BetMGM same-game parlays and live betting markets, to a targeted marketing strategy that includes a partnership with X, BetMGM is seeking to refine the bettor experience while positioning itself at the intersection of fandom and engagement.
Greenblatt also shared insights on how lessons from international markets shape BetMGM’s approach to challenges like high taxes in what he called the most competitive market he’s seen in over two decades.
(This interview has been edited for clarity.)
LSR: Why did BetMGM invest more into product this season than in the past?
Greenblatt: Our product is in better shape than it’s ever been by some margin. Angstrom has enabled improvements around same-game parlays and unique markets, but it’s much more than that. We survey our customers every month and have elevated their entire experience around speed, stability, and the intuitiveness of their journeys. We’ve enriched our product with quick bet features and real-time data to help support our players’ decision-making. They never need to go to a companion sports app to find out what to do next.
I’m delighted with how it’s all come together. It is also in the experience around the app, as omnichannel is core to our strategy. BetMGM players are earning redeemable points at MGM Resorts, Marriott, and its 30 brands and 10,000 global locations. These are unique to BetMGM and bridge the digital experience with hospitality and entertainment at a premium level in the real world.
At the back end of last year, there was a desire to see us demonstrate our ability to generate profits, EBITDA positivity, and we did that, but in so doing, we softened a little the investment in top-line growth. Because of the nature of our industry, where you acquire players, and they stack on top of the players that you acquired before, in the year of acquisition, it’s a drag, but then in the following year, it expands your top line in a really positive way for your total PNL. We lost a little bit of momentum as a result of that action. We’re not in 2024; we’ve communicated externally our investment here, and so we’re committed to being a top-tier player and investing behind that in both product partnerships and marketing.
LSR: What has the way the industry’s taken shape told you about product?
Greenblatt: Product excellence is frankly becoming table stakes for the leaders, and we certainly see ourselves as a leader. That’s our ambition, and it’s shared by our shareholders. Acquiring Angstrom was a big commitment from our shareholders, but deal-making takes time, and integrating it takes time. From a timing perspective we’ve done tremendously well getting those features to the market ahead of the NFL season, but it’s not either/or. You have to be visible.
We want to be in the middle of the conversation around live sports, so you see that with our partnerships with X and the Associated Press. Angstrom’s enabled us to offer over 1,000 futures and over 450 wagering opportunities for every pro football game. You can bet who scores first on the 1 p.m. slate for example, which creates a great opportunity for that red zone viewer. It lets us connect with our customers in a new way. BetMGM is peppered throughout mainstream content consumption, and that’s where we need to be. We’re going to see a lot of BetMGM this season, in a way that I think we slowed at the back end of last year.
LSR: Have you been surprised by how quickly the market has consolidated?
Greenblatt: Two and a half years ago, I said we’re going to see one more football season, and then we’re going to start to see a shake-out. There are economies of scale in our sector, natural efficiencies associated with being big, cost of participation given every state is its own island in some ways, which means licensing, compliance, tax reporting, is all significant, and frankly, the margin structure in our sector is what it is.
You have to sell a lot of bets just to meet your costs to participate, and that’s before you’re even competitive. The promised land, this image of great opportunity for everyone, was somewhat shallow because you have to be first class and really committed to winning this market. It’s the most competitive market in the 20 years I’ve been doing this, on every dimension, how quickly product is moving, how assertive operators are towards marketing and brand.
LSR: You have been excited about a single-wallet in Nevada for a long time. Why?
Greenblatt: It’s one of our big differentiators. If you go to Vegas, you feel the strength of MGM. It’s everywhere. MGM Resorts is the largest employer in Nevada. It’s the biggest taxpayer and controls more rooms than any other on the Strip. It controls more outdoor advertising and more brand identification than anyone else. Now, with BetMGM, you arrive off the plane and are a part of that. It has an impact on how players feel about our brand. We offer players a seamless and elevated experience from wherever their home state is, into Vegas and back.
And by the way, you’re earning points, so there is that loyalty tie-in that you can go back home and then start thinking about your next trip. This is only at BetMGM, a feature and customer benefit. MGM Nevada has 13 million room nights on an annual basis. If everybody that bets sports leaves the state with BetMGM in their pockets, that would be a success.
LSR: How about the rest of the country? What’s your goal for football season?
Greenblatt: We don’t have a market share goal because there’s a macro of how the market grows question. For some of our competitors, this season’s their attempt at being relevant, and that will have an effect of some sort. We feel very confident in our ability to delight our players and expand our market share in sports. We’ve been talking about unlocking Nevada for a long time. It’s here. We’ve been talking about single-account for a long time. It’s here.
Enhancing cross-selling should be positive for our gross win margin. Our iGaming business is on fire. We’ve set record after record in every single consumer-facing KPI. Cross-selling sports to iGaming is important, but there is also cross-selling from iGaming to sports, which we think plays to one of our strengths.
LSR: How do you plan to deal with higher taxes?
Greenblatt: I have the fortune or misfortune of having seen a lot of these movies before. In Germany, they introduced a 5% tax on handle many years ago. The response initially by the operators was to pass that tax on to consumers. Everybody did it. And then the market leader, today, decided the strategy instead should be to lean into changing product mix and seek to expand the margin such that they can absorb the tax increase.
Lo and behold, it was not a basis points increase in market share, but a percentage points increase. The industry has lots of ways to respond and has shown itself to be fairly creative and resilient. So, while there remains a risk, our ability to mitigate it will always be there, and markets that are more mature highlight some clues of options and alternatives that might be available.
LSR: Operators are finally ramping up live betting in the US. Why has that been such an emphasis lately?
Greenblatt: You rightly recognize the trends and patterns that we’ve seen in international markets where live betting has become 50% or more of mainstream sports. By comparison, we have huge opportunities in our big US sports for increases in live betting as a proportion of total wagering. There is a great opportunity to expand the product, but it’s a wonderful engagement bet type because of how it interacts with the live viewing experience.
We’re seeing increases in live betting as a proportion of total bets, but it’s actually surprised me that it’s not going more quickly. In other aspects of the US market, the maturity curve has been very quick, whereas live betting NFL is not 50% or more than 60%. The game’s amazing for it. Stop, start. Stop, start, nice pace. But I think there is a degree of player behavior and player adoption that takes a little bit of time. Operators can change, and we’re leading much more assertively. But, old habits die hard. There are lots of dimensions, but I think the trend is up to the right.
