BetMGM Reports 6% Yearly Rise in Revenue
BetMGM reported its financial results for the first half of 2024. While the operator saw a 6% increase in revenues, the EBITDA for H1 was negative, amounting to -$123 million.
Reasons Behind Negative EBITDA
BetMGM CEO Adam Greenblatt emphasized that 2024 is a year of future-oriented investments for the operator, which is the main reason for the negative EBITDA. “The first half of this year has been very important in laying the groundwork for BetMGM’s future. 2024 is a year of investment, focusing on improving our customer experience and stepping up our level of investment in players,” said Greenblatt.
However, the operator has some reasons to be pleased. Revenues in the first half of 2024 were 6% higher year-over-year, reaching $978 million. The second quarter of this year also performed well, with BetMGM reporting a 9% year-over-year increase in revenues and a 3% increase compared to the first quarter. Additionally, net gaming revenue (NGR) per active player grew by 16% year-over-year.
Adam Greenblatt believes that the reported results are a positive indicator for the future. “We have exceeded our goals for both acquisition and retention, which should lead to higher year-over-year revenue growth for the second half of this year into 2025,” added the BetMGM CEO.
H1 Highlights
BetMGM has continued to expand its geographic footprint, now live in 29 markets and accessible to 52% of the adult population in North America. Recent launches include digital sports betting in North Carolina and the District of Columbia.
The company holds a 13% gross gaming revenue market share in the U.S. and Ontario across sports betting and iGaming, with approximately 22% market share in iGaming alone.
BetMGM’s marketing efforts in the first half of the year have been bolstered by partnerships with brands such as Marriott Bonvoy and the Associated Press.
A successful Super Bowl campaign featured a citywide takeover of Las Vegas and iconic commercials with celebrities like Tom Brady. The company has also secured an exclusive ambassadorship with Brian Christopher Slots for all online regulated markets.
The operator has also introduced several enhancements to its sports betting and iGaming products. These include new features for single-game parlay (SGP) and SGP+ products, live bet tracking, and exclusive games. BetMGM’s jackpots and reward mechanics have also contributed to its strong performance. For instance, the New Jersey jackpot is expected to be the largest regulated U.S. online jackpot ever paid, exceeding $5 million.
BetMGM ends the first half of 2024 with mixed feelings. According to the CEO’s statements, the negative EBITDA should not be a cause for concern, of course, as long as the investments made truly pay off in the future.
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