BetMGM is at the center of the three-way M&A tussle between DraftKings, Entain and MGM Resorts.
While that situation is being untangled, the joint venture keeps on proving its worth.
BetMGM delivered Q3 revenues of more than $200 million, according to Entain’s Q3 results. That was good for a 26% share of markets where BetMGM is live, up from 24% in Q2.
For comparison, DraftKings expects to generate around $230 million in total Q3 revenues.
BetMGM a top contender?
Entain’s CEO sees evidence of BetMGM approaching top status.
“Just looking at the month of August in isolation, we can see that BetMGM is now number one in the markets in which we operate,” said Entain CEO Jette Nygaard-Andersen.
“And we can see we are clearly starting to challenge for the number one market position nationwide.”
Igaming powered BetMGM growth
It’s important to note BetMGM’s total share is boosted by online casino. It is the largest igaming operator across the US with a 32% share.
That edge is especially inflated in Q3 thanks to the relative lack of sports. BetMGM is still third in sports betting revenues per state-by-state data.
Michigan is perhaps reflective of the overall picture. BetMGM had a 40% share of online gaming revenues, and a 23% share of online sports betting handle in August.
That was third behind DraftKings and FanDuel. BetMGM was also heavy on marketing spend.
Other notes from Entain call
- Arizona sports betting is already BetMGM’s largest state in term of active players. That is likely buoyed by citizens from other states crossing the border to bet.
- The initial bonusing frenzy around the start of the NFL season has calmed down. “We see the promotional environment normalizing,” Nygaard-Andersen said. “And as we always say, the best products will be the winners.”
- She said lifetime player values were still “looking good.”
No news on DraftKings bid
The CEO also refused to take any questions on DraftKings’ $22 billion bid for Entain.
“As flagged, we are now carefully considering the proposal,” Nygaard-Andersen said. “That includes a number of matters, including structure and value and then we’ll come back to the market as and when appropriate.”
A key part of those negotiations will be the fate of BetMGM. MGM has said it wants full control of the JV and can kill the takeover if it doesn’t get it.
Analysts at Regulus Partners said Entain might be wise to sell its share to MGM now while business is booming and the relationship is “amicable.”
Shore Capital pegged BetMGM at around an $11 billion valuation.