GVC upped its investment in BetMGM yet again as the brand continues to grow faster than expectation.
GVC said in a Q3 trading update today it would lose $77.4 million in the US in 2020, up from the previously expected $52 million. But the increase reflects the health of the business rather than a concern, GVC said.
“We are spending more on marketing than anticipated because sports have returned more fully and quickly than anticipated,” GVC CEO Shay Segev said. “That’s one of the main reasons (net gaming revenue) is up, but it does mean losses are higher also.”
For comparison, FanDuel Group expects to lose $185-210 million this year. BetMGM will come in at around $145 million when including MGM’s contribution. Segev said BetMGM would deliver net revenue of $150-160 million for 2020, and spend a similar amount on marketing.
During Q3 alone, BetMGM signed deals wit:
- Denver Broncos
- Detroit Red Wings
- Detroit Lions
- Las Vegas Raiders
- Tennessee Titans
BetMGM gaining market share
The strength of the US business was a key focus of the GVC trading update on Thursday.
Segev said BetMGM had a 17% share of sports betting and iGaming markets where it was active. That includes a 22% share of online gaming in New Jersey and 10% of online sports betting.
“We are making great progress towards being the leading operator in the US,” Segev said.
The BetMGM brand also has a 15-20% share in Colorado.
Product upgrades on the way
This week, BetMGM also began the roll out of a single app across the eight states it is live in.
That means customers can download the app in New Jersey then play on the same one in Colorado. That rollout should be competed in November, Segev said.
Questions about Yahoo?
Elsewhere, Segev was somewhat less bullish on the company’s integration with Yahoo Sports. For starters, he declined to share any numbers on customer acquisition when questioned by analysts.
“I suspect that Yahoo is going to be a journey,” Segev said. “The motivation from Verizon Group and Yahoo is very strong and we are working very closely with the Yahoo team. We expect to have even more integrated journeys between the Yahoo and BetMGM apps and hopefully we’ll share some information about this soon.”
“Again, it’s a journey. It’s progressing well, but I think it’s too early to talk about numbers.”
GVC’s share price climbed 3% in London following the trading update, as groupwide NGR climbed 28% in Q3.