Business By The Books: Early Insight On Sports Betting Earnings

Written By

Updated on

sports betting

Earnings season for year-end reports from 2022 is underway, with three calls related to sports betting scheduled for this week.

There has already been a peek into some sports betting earnings, though, thanks to debt refinancing from Caesars and a BetMGM update.

This week’s calls:

Customer acquisition costs improving for BetMGM

Data-focused insights on marketing helped BetMGM cut costs per acquisition by 21% in 2022 compared to 2021, CEO Adam Greenblatt said.

The focus is making sure the right customers are getting the bonuses, he said. That helped online sports net revenue margin double in the fourth quarter compared to last year.

BetMGM holds a leading 30% market share in iGaming with a 13% market share for online sports betting. That share jumps to 20% for states where BetMGM was live on day one.

Read more on BetMGM’s 2022 report by LSR writer Sam McQuillan.

Caesars cuts sports betting losses

Caesars expects its digital division to post an adjusted EBITDA loss between $4 million and $6 million for the fourth quarter, compared to a loss of $305 million in the fourth quarter of 2021.

The early earnings numbers came as the company initiated an offering of $2 billion in 7% senior secured notes due 2030 as it refinances its debt.

Caesars expects betting handle to be between $12.75 billion and $12.85 billion, with a hold between 5.3% and 5.5%. That handle does not include select wholly owned and third-party operations, which accounted for $1.223 billion in handle and an 11% hold.

Online casino drop should be between $8 billion and $8.1 billion, with hold between 3.1% and 3.3%.

GeoComply-Xpoint suit moves forward Tuesday

GeoComply‘s lawsuit against Xpoint for allegedly infringing on a patent for geolocation services will continue Tuesday at 1 pm Eastern with a teleconference covering multiple items:

NIGC Counsel Hoenig joining San Manuel

Mike Hoenig is no longer the general counsel for the National Indian Gaming Commission after stepping down Friday.

Hoenig is joining the San Manuel Band of Mission Indians as a VP and associate general counsel for gaming. The San Manuel bought The Palms in Las Vegas last year, marking its first gaming venture outside of California.

Hoenig joined NIGC in 2006 and was general counsel for the last seven years.

“It is with mixed emotions that I depart NIGC. I am sincerely grateful to have been privileged enough to get to serve with the amazing staff to advance the mission and purposes of the Indian Gaming Regulatory Act – to protect Tribal gaming as one of the most important economic resources in Indian country.

“I look forward to continuing that mission from a slightly different perspective in this new role with the San Manuel Band of Mission Indians.”

– Mike Hoenig

Washington tribes again push back on expanded sports betting

It is a new legislative session in Washington state, which means a renewed effort for and against sportsbooks in cardrooms.

Sports betting was approved at only tribal casinos in 2020, which did not sit well with cardroom owner Maverick Gaming‘s CEO Eric Persson, as he promised a lawsuit before the tribal-only bill even passed: “I have the money, the time and the guts to fight it so let’s do it,” he said. “That’s how I’m looking at it.”

A lawsuit was filed last year, but while that plays out, another attempt to expand Washington sports betting was filed. HB 1630 and SB 5587 would legalize sports betting at both cardrooms and racetracks.

Washington Indian Gaming Association‘s Executive Director Rebecca George responded to those bills Wednesday:

“Washington State tribes continue to strongly oppose Maverick’s gambling expansion legislation. It would severely undermine Washington State’s safe and successful system of gaming and would put Washingtonians at risk, and we call on legislative leaders to once again reject it.”