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State of Play’s TL;DR
- BetMGM says it is directing more investment toward online casinos, multi-product states and higher-staking sportsbook customers.
- The company recognizes that competition is increasing across the US.
BetMGM says it is shifting more of its US investment toward higher-value customers and markets as competition intensifies, while reducing spend in lower-return online sportsbook-only states.
CEO Adam Greenblatt said the operator has leaned further into segments and jurisdictions that offer stronger returns, including online casino markets, multi-product states, Nevada and, more recently, Alberta. He also said BetMGM is putting more emphasis on higher-staking online sports betting players.
BetMGM prioritizes markets and customers with stronger returns
Greenblatt said the company has stayed “nimble and disciplined” by focusing on areas where it believes it can generate the most attractive returns.
According to BetMGM, that has meant increasing attention on its BetMGM online casino product and markets where it can offer more than one product, while pulling back in certain online sportsbook-only markets that produce weaker returns. Greenblatt said the strategy has helped BetMGM maintain its position in the US even with lower marketing investment.
In its Q3 update, BetMGM said it held about 8% market share in sports betting, 20% in online gaming. and 14% overall across its active markets.
Acquisition costs improve as marketing becomes more targeted
Greenblatt said BetMGM’s optimization of media channels, geographic targeting, and marketing mix is driving strong customer acquisition and attractive returns across both online casino and online sports markets.
He also said customer acquisition costs have “meaningfully reduced” in recent months, and that predicted returns are at their most favorable level since the beginning of the year and late last year.
Macquarie analysts echoed that view, saying BetMGM is improving efficiency through better acquisition economics, lower customer acquisition costs, payment processing improvements, and operating leverage. The analysts also noted that BetMGM’s market share has remained stable despite lower marketing spend on online sports betting.
Based on reporting by Rob Fletcher for Next.io.
