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BetMGM expects to deliver net revenue from operations of over $1.3 billion in 2022 and reach positive EBITDA in 2023
LAS VEGAS, Jan. 19, 2022 /PRNewswire/ -- BetMGM, LLC ("BetMGM"), one of the leading sports betting and iGaming operators across the U.S., jointly owned by MGM Resorts International (NYSE: MGM) ("MGM Resorts") and Entain plc (LSE: ENT) ("Entain"), is today providing an update on performance and outlook for 2022.
BetMGM is achieving market share in line with its long-term target of 20% - 25% in U.S. sports betting and iGaming
Live in 19 jurisdictions – 4 iGaming, 19 sports betting
Strong financial performance in FY 2021:
FY 2022 net revenue from operations expected to be over $1.3 billion
Continued growth will be supported by investment in additional markets and product deployments:
BetMGM anticipates reaching positive EBITDA in 2023, based on its current assumption of future live markets
Wholly supportive of BetMGM's continuing success, strong performance and market leadership, the investment by MGM Resorts and Entain is expected to be approximately $450 million in 2022
BetMGM will host a conference call at 10:00 a.m. Eastern Time today, which will include an overview of its results, followed by a brief question and answer session. The call will be accessible via the Internet through https://www.webcaster4.com/Webcast/Page/2832/44324 or by dialing:
U.S. (Toll Free): +1 (877) 871-3172
U.K.: +44 (0) 20 3147 4901
International: +1 (412) 902-6603
Conference call access code: 3122358
The live webcast and replay will also be accessible at http://investors.mgmresorts.com/investors/events-and-presentations/.
BetMGM 2022 Investor Day:
BetMGM will host an investor day for analysts and investors during May to provide further updates on financial performance, operational plans and outlook. Details of the event, including format and registration, will be made available via press release in due course.
Adam Greenblatt, Chief Executive Officer of BetMGM commented, "The highly talented team at BetMGM is executing our plan with purpose, passion and discipline, and our results speak for themselves. After only 3 years into our journey, we have cemented the credibility of BetMGM's leadership ambition in sports betting and iGaming in the U.S. 2022 is a critical year, where the leading national operators will reach critical mass, paving the way for the next phase of the sector's financial evolution. With the support of our shareholders, our technology and data platform, brand and omni-channel strategy, we look to the future with confidence."
Bill Hornbuckle, Chief Executive Officer and President of MGM Resorts commented, "BetMGM has made significant progress in gaining a strong foothold in the rapidly growing U.S. sports betting and iGaming market, solidifying its position as the number two operator nationwide in 2021. These achievements are underpinned by the structural advantages offered through MGM Resorts and Entain as well as a best-in-class team at BetMGM led by Adam. As we look to 2022, we are beyond excited about further integrating BetMGM with our MGM loyalty program and land-based operations to elevate the BetMGM player experience. We are more confident than ever about BetMGM's future prospects and remain committed to its continued success."
Jette Nygaard-Andersen, Chief Executive Officer of Entain commented, "BetMGM is built on Entain's best in class technology and capabilities alongside MGM Resorts iconic brand and assets. Its fantastic success so far demonstrates that BetMGM has really captured the excitement of customers across the states where it operates. BetMGM continues to outpace the market as a result of its unique assets and go to market approach, broad and highly engaging range of in-house products and digital marketing capabilities. Given the long-term opportunity and shareholder value potential in winning in this market, we are very happy to support BetMGM in this investment phase of its growth journey and we are absolutely committed to providing BetMGM with what it takes to win."
1: 2021 net revenue for BetMGM on a GAAP basis is expected to be approximately $813 million, which includes approximately $52 million related to Nevada MGM operations for which BetMGM records on a net basis as BetMGM is considered to be the agent in the Nevada transactions for GAAP purposes.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve substantial risks and/or uncertainties, including those described in the MGM Resorts International public filings with the Securities and Exchange Commission. BetMGM has based forward-looking statements on management's current expectations, assumptions and projections about future events and trends. Examples of these statements include, but are not limited to, BetMGM's expectations regarding its financial outlook (including forecasted revenues from operations, EBITDA losses, and amounts expected to be invested by MGM Resorts and Entain in 2022), projected market share position, and its expected growth in new and existing jurisdictions. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Included among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements are: the significant competition within the gaming and entertainment industry; BetMGM's ability to execute on its business plan; changes in applicable laws or regulations, particularly with respect to iGaming and online sports betting; BetMGM's ability to manage growth and access the capital needed to support its growth plans; and BetMGM's ability to obtain the required licenses, permits and other approvals necessary to grow in existing and new jurisdictions. In providing forward-looking statements, BetMGM is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law. If BetMGM updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.
Non-GAAP Financial Information
This press release includes projected net revenue from operations, which has not been prepared in accordance with GAAP. BetMGM believes this presentation, which it uses for its own analysis of operations, is useful in that it reflects the true economic performance of the business. If BetMGM presented net revenue from operations in accordance with GAAP, then BetMGM would present the revenues associated with its Nevada digital and retail sports betting operations differently, until such time as BetMGM is licensed as a Nevada gaming operator. Currently under GAAP, its calculation of Net Revenue would be on a basis net of operating costs, such that the GAAP reported Net Revenue would be lower than the Net Revenue reported herein, with Net Income remaining the same.
BetMGM is a market leading sports betting and gaming entertainment company, pioneering the online gaming industry. Born out of a partnership between MGM Resorts International (NYSE: MGM) and Entain Plc (LSE: ENT), BetMGM has exclusive access to all of MGM Resorts' U.S. land-based and online sports betting, major tournament poker, and online gaming businesses. Utilizing Entain's U.S.-licensed, state of the art technology, BetMGM offers sports betting and online gaming via market leading brands including BetMGM, Borgata Casino, Party Casino and Party Poker. Founded in 2018, BetMGM is headquartered in New Jersey. For more information, visit http://www.betmgminc.com/.
About MGM Resorts International
MGM Resorts International (NYSE: MGM) is an S&P 500® global entertainment company with national and international locations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. MGM Resorts creates immersive, iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 32 unique hotel and gaming destinations globally, including some of the most recognizable resort brands in the industry. MGM Resorts's 50/50 venture, BetMGM, LLC, offers U.S. sports betting and online gaming through market-leading brands, including BetMGM and partypoker. MGM Resorts is currently pursuing targeted expansion in Asia through the integrated resort opportunity in Japan. Through its "Focused on What Matters: Embracing Humanity and Protecting the Planet" philosophy, MGM Resorts commits to creating a more sustainable future, while striving to make a bigger difference in the lives of its employees, guests, and in the communities where it operates. The global employees of MGM Resorts are proud of their company for being recognized as one of FORTUNE® Magazine's World's Most Admired Companies®. For more information, please visit us at www.mgmresorts.com. Please also connect with us @MGMResortsIntl on Twitter as well as Facebook and Instagram
About Entain plc
Entain plc (LSE: ENT) is a FTSE100 company and is one of the world's largest sports-betting and gaming groups, operating both online and in the retail sector. The Group owns a comprehensive portfolio of established brands; Sports Brands include bwin, Bet.pt, Coral, Crystalbet, Eurobet, Ladbrokes, Neds and Sportingbet; Gaming Brands include CasinoClub, Foxy Bingo, Gala, Gioco Digitale, Ninja Casino, Optibet, partypoker and PartyCasino. The Group owns proprietary technology across all its core product verticals and in addition to its B2C operations provides services to a number of third-party customers on a B2B basis. The Group's joint-venture with MGM Resorts International, BetMGM, is a leader in sports-betting and iGaming in the US. Entain provides the technology which powers BetMGM and exclusive games and products, specially developed at its in-house gaming studios. The Group is tax resident in the UK with licenses in a total of 27 regulated markets. Entain is a leader in ESG, a member of FTSE4Good, the DJSI and is AA rated by MSCI. The Group has set a science-based target, committing to be carbon net zero by 2035 and through the Entain Foundation supports a variety of initiatives, focusing on safer gambling, grassroots sport, diversity in technology and community projects. For more information see the Group's website: www.entaingroup.com
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MGM RESORTS CONTACT
Executive Director, Investor Relations
Executive Director, Media Relations
Group Director of Investor Relations & Corporate Communications
Head of Investor Relations
Head of Media Relations
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SOURCE BetMGM; MGM Resorts International