Ahead of BetMGM’s financial report for FY2024 on 4 February, we analyse the biggest storylines that will likely be part of the report as the operator heads into 2025.
In December 2023, CEO Adam Greenblatt described 2024 as being “an investment year” for BetMGM. Some of the moves the operator has made over the past 12 months have lived up to that promise.
Within its Q3 financials in October last year, Entain noted that BetMGM had market share stabilisation (15%) with iGaming (22%) and online sports betting (8%).
With 2024 being an investment year, how will the operator approach and describe 2025? Further explanation and clarification will likely be provided too on how the operator will reach a $500m positive EBITDA in the next few years.
The Price is Right
BetMGM has already started 2025 with a significant deal, as the operator reached a multi-year agreement with Fremantle for the intellectual property rights for iconic game shows ‘The Price is Right’ and ‘Family Feud’.
The operator will create customised online casino content – slots, table games and non-traditional casino games – involving both game show brands.
We await to see what kind of impact BetMGM forecasts ‘The Price is Right’ and ‘Family Feud’ will have on its iGaming operations given they’re such iconic game show brands.
Previously, BetMGM has collaborated with another well-known game show brand in ‘Wheel of Fortune’ for a themed online casino and slots, so a similar trajectory could be in store for ‘The Price is Right’ and ‘Family Feud’. BetMGM has also sponsored episodes of ‘Wheel of Fortune’.
Customer-friendly sports results
Several operators globally have highlighted customer-friendly sports results in updates ahead of Q4 financials, including BetMGM.
In a trading update in the middle of January this year, Entain stated that although customer-friendly US sports results were seen during Q4, particularly in October and December, BetMGM reiterated its previous FY24 EBITDA guidance of approximately -$250m.
Customer-friendly sports results could continue into Q1 2025 depending on how Super Bowl betting unfolds for the operator, as well as other major US sporting events such as the NCAA March Madness basketball tournament.
Angstrom impact
Throughout 2024, BetMGM integrated the Angstrom Sports technology capabilities across its online sportsbook, expanding the offering and options available to its customers in various sports, including a portfolio of pre-game and in-game wagering options, as well as individual player and play-by-play bets.
Within Entain’s Q3 update, it was mentioned that Angstrom’s capabilities across NFL, NBA, MLB and NCAA Football sports betting were “driving increased parlay bet mix and gross gaming revenue hold”.
Angstrom may be assisting with cross-selling as well, as within the same update, record igaming revenues were highlighted with first-time depositors up 70% and “strong online sports to gaming cross-sell” in NFL season at that point.
As we edge closer to a full year of some technology components being in play, how much more of an effect will Angstrom have on the operator’s sports betting offering?
Single Account Single Wallet integration
In August last year, BetMGM went live with its Single Account Single Wallet (SASW) integration in Nevada, allowing state residents and visitors to wager in the state and take their funds to other mobile markets where the operator is live across the country.
Within its H1 update last July, the SASW was described as “empowering the final Las Vegas unlock for BetMGM”. Greenblatt added that the integration would be an “important driver of the customer experience”.
In Entain’s Q3 update, the operator was seeing “encouraging trends” from the integration in Nevada with “strong FTD growth and player engagement continuing” when they return to their home state.
We await to see what additional impact the SASW integration can have in 2025.
