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BetMGM raises 2022 revenue outlook as U.S. sports-betting takes off

BetMGM to turn a profit next year
BetMGM to turn a profit next year Copyright Thomson Reuters 2022
Copyright Thomson Reuters 2022
By Reuters
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By Yadarisa Shabong

-BetMGM raised its 2022 revenue forecast to more than $1.3 billion from $1 billion on Wednesday and said it expects a core profit in 2023 as the U.S. sports-betting joint venture between MGM Resorts and Britain's Entain expands.

The online sportsbook for betting on NFL American football and NBA basketball was in the spotlight last year when both MGM and DraftKings tried and failed to take over Entain.

Gambling companies have been looking to capitalise on the growing U.S. sports-betting market, while online gaming has also taken off since the start of the coronavirus pandemic.

BetMGM said it was gaining market share in line with its long-term target of 20%-25% in U.S. sports-betting and iGaming.

The U.S. venture, which is the No. 2 operator for sports betting and iGaming, has grown steadily and challenged FanDuel owner Flutter, the No.1 player in the American market, with its owners expected to invest another $450 million in 2022.

Shares in Entain rose 1% and New York-listed MGM inched up 0.2% by 1443 GMT.

Peel Hunt analysts said on Tuesday BetMGM was key to their valuation of Entain, saying the venture could be sold at the right price or could be the key reason why MGM makes another approach for the British bookmaker.

Entain's boss said in November that BetMGM was one of the reasons why DraftKings' $22 billion offer to buy the British firm fell through as MGM would have sought to take full control of the joint venture.

BetMGM's net revenue is expected to be about $850 million in 2021, up nearly five times from 2020, while its core loss is seen in the range of $420 million to $440 million.

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