BetMGM to increase spending on customer acquisition

Despite mixed results in its first-half report, the sportsbook is doubling down on its future.

BetMGM released its first half update for 2024 last week, and it’s a mixed bag. The company touted its net revenue from operations reaching $1 billion and highlighted that net revenue per active sportsbook user is up 16% year-over-year. 

However, the company also announced a first half EBITDA (earnings before interest, taxes, depreciation, and amortization) of -$123 million dollars. This highlights that the company is operating at a loss, although it will say that this was expected. 

Citing an announcement from December 2023, BetMGM reaffirmed that 2024 is a year for investment in its customers and future growth. Despite the poor financial report, BetMGM believes that momentum is accelerating in a year where it didn’t expect much.

Expect a similar second half

If you’re expecting a quick turnaround for BetMGM, you might want to pump the brakes. The company announced in its half-year report that its -$123 million EBITDA is in line with expectations and that it expects a similar result for the second half of the year. This means that for the entire year, BetMGM expects to operate at a loss of nearly $250 million. 

“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,” said BetMGM CEO Adam Greenblatt. 

While BetMGM has posted impressive numbers in the iGaming sector and remains third in the nation in terms of sports betting market share, the company determined that if it wants to compete with FanDuel and DraftKings, it would need to make some changes in the ways it operates and invests in customer acquisition. 

FanDuel and DraftKings make up nearly 80% of the country’s gross gaming revenue. BetMGM is neck-and-neck with Caesars for the third spot on the podium. 

Investment in technology, ads

A lot of BetMGM’s optimism comes from its collaboration with Angstrom, a sports analytics and data company. 

BetMGM has seen a 40% rise in active bettors who have placed an MLB same-game parlay this season. The volume of those bets has more than doubled. Angstrom’s capabilities have enhanced the betting experience through features such as live bet tracking. 

The operator hopes that these updates, along with the full completion of the Single Account Same Wallet integration ahead of football season, will lead to even more growth during the upcoming NFL and college football seasons. 

BetMGM is also claiming its Super Bowl campaign was successful, mainly due to “an iconic commercial featuring Tom Brady, Wayne Gretzky and Vince Vaughn” and a successful city-wide takeover of Las Vegas at its numerous resorts and properties. 

As the year continues, expect BetMGM to continue to make similar investments in an attempt to close the gap in what has quickly become a two-company market atop the U.S. sports betting landscape.