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BetMGM’s net revenue for the first half of 2024 was $1 billion. This is 6% higher than a year ago.
The joint venture between MGM Resorts and Entain shows that net revenue was up 9% during the second quarter compared to the same period a year ago. It was also up 3% from the first quarter of this year.
When MGM Resorts (NYSE: MGM) reported its second-quarter earnings, it noted that BetMGM posted a loss of $38 million. This is larger than the second quarter of 2023 when BetMGM’s loss was $22 million.
Key takeaways
- 2024 is a year of investment for BetMGM
- BetMGM’s net revenue was $1 billion for the first half of the year
- BetMGM has a 22% share of iGaming market in US and Ontario
- Look for more MGM-branded games
BetMGM’s Q2 2024 financial overview
This is a year of investment for the online casino and sportsbook company according to Adam Greenblatt, CEO of BetMGM. In BetMGM’s first-half 2024 update, he said:
“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. We are encouraged to see this strategy delivering accelerating momentum.
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.”
The company warned that losses would be greater than expected due to the investment expenses. During the first half of the year, BetMGM reported an EBITDA of -$123 million.
Since this is a year of investment, BetMGM expects to see similar results during the second half of the year.
MGM Resorts executives reiterated this during the company’s earnings call on Wednesday. During the MGM Resorts Q2 2024 earnings call, CEO Bill Hornbuckle reiterated the company’s commitment to BetMGM saying “We’re not giving up on digital by any stretch.”
iGaming was a bright spot for BetMGM in the first half of the year. The company says it has approximately a 22% share of the iGaming market in the US and Ontario.
BetMGM’s online casino investments include games in the US from Push Studios and international games from Playtech and LeoVegas.
When discussing these investments, MGM Interactive’s president Gary Fritz said: “In the near term, after 2 years of investment, we see the core businesses at LeoVegas and Push Gaming beginning to show positive momentum”
On the financial end, Fritz says he expects to see “a double-digit stabilized return by 2027.”
BetMGM Casino focuses on offering engaging and proprietary content
In addition to the 22% market share in the US and Ontario, the number of active online casino players is on the rise despite not launching in any new states during the second quarter.
During Q2 of 2024, the average number of active online casino players increased by 18% compared to the first half of last year. That’s also up from 9% in the first quarter.
A goal for BetMGM Casino is to keep this market share as the company continues to grow.
BetMGM saw a huge jackpot winner during the first half of the year. The company paid a jackpot of over $5 million in New Jersey. This is expected to be the largest regulated US online casino jackpot ever paid.
The reason BetMGM wants to focus on its own branded games is that those are the top performers in its online casino. Having said that, BetMGM is still open to outside providers. The company recently launched Evolution’s “biggest release ever”, Lightning Storm, in Ontario.
This game isn’t available in the US yet but Evolution’s CEO of North America Jacob Claesson tells Bonus.com that it could eventually make its way to the states.
The company also launched BetMGM Arcade. This is the home for ‘non-traditional’ games including LuckyTap and Crash-style games. Vice President of Gaming Product and Content for BetMGM Oliver Bartlett mentioned these new games when PlayUSA spoke with him earlier this year.
During the first half of the year, BetMGM launched exclusive games with new reward mechanics from suppliers such as GameCode and White Hat Gaming.
MGM Resorts’ investment in Playtech has made it the only US online casino operator to offer live casino games for International markets directly from the Las Vegas Strip.
