Entain reported solid third-quarter metrics for BetMGM Thursday, noting the brand’s steadying US share and positive trends.
BetMGM saw net gaming revenue grow 18% in constant currency during the third quarter, according to Entain’s report. London-listed companies such as Entain are not required to give full earnings updates for the first and third quarter, but more specifics could be available when MGM Resorts reports its earnings Oct. 30.
Thursday marked the first earnings call for gaming industry veteran Gavin Isaacs, who took over Oct. 1 as Entain CEO. Isaacs noted his main focus moving forward is on the company’s core platform, which impacts both BetMGM and international operations.
Entain stock rose 2.8% to close at 732.2 pence ($9.53 USD.)
Product improvements at BetMGM
The integration of Angstrom‘s pricing across multiple sports helped substantially in the third quarter. CFO Rob Wood said there is still a way to go before BetMGM is where it should be.
Angstrom is now live with NFL betting, as well as college football and NBA. That means more bets more combinability of those bets, which drove growth of more average legs per parlay, Wood said.
BetMGM is also seeing more bets per active customer and increased active player days in both sports and iGaming.
BetMGM sees stable market share
Perhaps most importantly, BetMGM is seeing its sports and iGaming share stabilize after the product started to fall a bit behind in the US.
US market share sat at 15% for the third quarter, with more than a fifth of the iGaming market at 22% and 8% of the online sports betting market.
Online casino reported record revenues in the third quarter and saw first-time depositors up 70%. BetMGM saw “strong” cross-selling from its online sportsbook to online casino.
Nevada single wallet opportunity
BetMGM now utilizes a single wallet across all of its US jurisdictions, with Nevada added in August.
It is too early to give specifics but so far, Entain has seen “encouraging trends” since the integration with both first-time depositors and player engagement after returning from Las Vegas to their home state.
“We’re excited by the opportunity, put it that way,” Isaacs said.
Wood noted that Caesars mentioned working on single wallet including Nevada that should be available next year.
Where is BetMGM on profitability?
How profitable BetMGM can be starting next year will largely be determined by player acquisition, Wood explained.
BetMGM plans to spend $750 million on customer acquisition this year. But that number could increase next year if the metrics are right, Wood said.
The promotional intensity has been “more of the same” with only a few operators fighting for online sports betting market share right now, he said.
With the improvements from Angstrom, player payback periods are improving, which could drive higher investment.
