BetMGM, a leader in online gambling, reported $1.44 billion in net revenue in FY2022, putting the company ahead of its $1.3 billion projection.
The company said three factors led to its better-than-expected results:
- Better margins: Improvements to multiple products and a better customer experience were the key here.
- Reduced customer acquisition costs by 21% state-by-state: BetMGM improved how much it cost to get new customers through data and other factors
- Better bonus strategy: The company’s data science team found improved ways to offer bonuses to players.
BetMGM’s FY2022 revenue at a glance
One of the highlights of BetMGM’s fiscal year was its digital gaming success. The company saw 51% growth on a state-by-state level for its digital operations. This is a good sign, as the company devotes a lot of resources to online sports betting and BetMGM online casinos.
Additionally, the company doubled its sports betting net revenue margin in Q4 2022 compared to Q4 2021.
Significant market share
BetMGM has a 30% market share of online casino and online poker play. Additionally, the company has a 20% share of sports betting markets in which it operated from day one. Overall, it has a 13% sports-betting market share.
Expanded gaming footprint
The company launched its BetMGM online sportsbook in six new markets:
- New York
Launching in New York and Illinois were big steps. Both of those markets are among the top-five in the country based on how much is bet every month.
On the retail side, the company opened four retail sportsbooks. That included the first sportsbook in an NFL stadium at FedEx Field in Maryland.
Overall, BetMGM now operates in 25 states as well as Ontario and Washington, DC.
Renewed commitment to responsible gaming
In FY2022, BetMGM played a key role in several responsible gaming initiatives. In September, it launched a 12-point series of responsible gaming standards that it created with other industry leaders such as Bally’s Corporation, DraftKings, and FanDuel.
Additionally, the company joined two key responsible gaming programs: GameSense and the National Council on Problem Gambling.
Won multiple awards
BetMGM won several high-profile awards for its retail casino operations. Also, it American Gambling Awards named it Online Casino of the Year.
2023 projections see continued growth
BetMGM projects its 2023 net revenue to fall somewhere between $1.8 billion and $2 billion. Revenue in that range would mean 25% to 39% growth, year-on-year.
MGM Resorts and Entain, BetMGM’s co-owners, plan to spend more than $100 million on the company in FY2023.
“Wholly supportive of BetMGM’s stellar performance and with confidence in management’s plan, MGM Resorts and Entain expect to invest a combined additional $150 million in FY 2023,” BetMGM said in a statement.
Should those investment numbers hold up, the total amount invested in BetMGM would reach around $1.25 billion.