BetMGM is laying off 83 employees from its headquarters in Jersey City, according to a filing with the New Jersey Department of Labor.
The layoffs are slated to go into effect on May 27, according to the BetMGM filing.
A spokesperson with BetMGM did not immediately respond to a request for comment.
BetMGM investments led to losses
An unanticipated additional year of investment in BetMGM left the company with an EBITDA loss of $244 million, 29% worse than 2023.
BetMGM’s EBITDA goal is to be $500 million positive in the foreseeable future.
Losses from product investments and a historic quarter of bad sports outcomes hit the figure by $50 million. It expects the app to be EBITDA positive for 2025, with sports becoming “contribution positive” for the first time.
In the second half of last year, BetMGM launched single-wallet in Nevada, aimed at adding more valuable players. Entain, one half of the BetMGM ownership along with MGM Resorts, also acquired data analytics firm Angstrom Sports in July 2023 to bolster its sports product, in a deal worth up to $265.4 million.
Third-place operator
BetMGM is third in share of national sports betting revenue at roughly 6.5% of the market, behind FanDuel and DraftKings, who combine for 76.7%, according to data from 13 states that report by operator. BetMGM is also third nationally in iGaming, with 22% of gross gaming revenue, MGM CEO Bill Hornbuckle said during the company’s fourth-quarter earnings call in February.
Management did not address possible workforce reductions during the call.
BetMGM’s headquarters in Jersey City opened in 2019, following the Supreme Court’s repeal of PASPA, and employs approximately 1,500 people.
