BetMGM has highlighted the cross-selling achieved between its online sports betting and iGaming operations during the 2024 NFL season.
The operator stated that it has seen an 11.5% increase in cross-selling from online sports betting to iGaming. CEO Adam Greenblatt noted that during the NFL season, the percentage of sports players also participating in iGaming is “north of 70%”.
“We think this is very exciting, which is frankly one of the reasons why we are very excited about this moment for our sports business,” commented Greenblatt during the operator’s investors conference call.
“We’ve managed to stabilise and even increase our share in gaming with a smaller sportsbook in a period of transition and, as we look to a future where we have the wind in our sails in sports, we think that’s only a good thing for our iGaming business.”
Record iGaming net revenue
Within its FY 2024 update, BetMGM reported that its net revenue reached $2.1bn, a 7% increase year-over-year (2023: $1.96bn) with “growth and player engagement metrics accelerating through the year”.
Average monthly actives for the operator rose by 14% YoY “reflecting strategic investment in player acquisition”.
Across verticals, iGaming hit a record net revenue amount of $1.5bn, up 13% YoY, with BetMGM reporting record average monthly actives (Q4: 55% increase YoY). Online sports betting net revenue increased by 4% to $554m due to “strengthened product and enhanced engagement”.
FY 2024 adjusted net revenue was up 13% YoY, while online sports were up 17% YoY. BetMGM noted that “continued momentum acceleration” was seen during H2 as adjusted net revenue was up 19% during the period in comparison to 6% during H1.
The operator also stated that the year’s EBITDA of negative $244m was “consistent with 2024 as a year of investment”, but it included “approximately $50m negative impact” following “highly customer favourable sports results” in December. Contributions from iGaming amounted to $424m.
Regarding market share stabilisation, BetMGM said this stood at a 14% GGR share in active markets, with iGaming at 22% and online sports at 8%, in addition to a 15% NGR share, “cementing BetMGM’s podium position in the market”. BetMGM operates in five iGaming and online sports betting markets and 24 markets for sports betting only (online and retail).
The operator also highlighted the omnichannel work accomplished over the past year, including the launch of its single account single wallet service and the integration of BetMGM Rewards with the MGM Resorts loyalty platform.
Regarding responsible gambling, BetMGM noted that it helped to launch the Responsible Online Gaming Association as a founding member, provided responsible gaming marketing in nine NFL stadiums in partnership with MGM Resorts, as well as launched its first responsible gambling commercial with brand ambassador and NHL star Connor McDavid.
BetMGM added that it has a $150m revolving credit facility secured and currently undrawn and that “no further capital” from its parent companies is expected.
Greenblatt commented: “2024 was a year of investment and rebuilding of momentum for BetMGM. Our successful strategic refinement saw BetMGM exit the year with encouraging run rates across our key metrics and Q4 EBITDA trend towards breakeven on a normalised basis.
“Our leading iGaming business continues to grow strongly and deliver attractive returns. We also have an exciting opportunity in Online Sports, having made meaningful progress in 2024.”
EBITDA positive in 2025
Looking to the year ahead, BetMGM noted that it expects FY 2025 to be EBITDA positive, increasing by “approximately $250m YoY”. The operator also issued net revenue guidance of $2.4bn to $2.5bn.
In addition, iGaming contribution is “expected to exceed 2024” while online sports is expected to be “contribution positive” for the full year.
Greenblatt added: “Our improved product, accelerating growth and enhanced efficiency drive our expectation of online sports being contribution positive for FY 2025.
“With BetMGM’s renewed acceleration across both iGaming and online sports we expect to achieve positive EBITDA in 2025, and our scaled podium position in the world’s largest gaming market underpins our confidence in our pathway to $500m EBITDA in the coming years.”
