MGM Resorts' (MGM) BetMGM Revenues Increase Y/Y in 2023
MGM Resorts International’s MGM sports betting and iGaming partner, BetMGM, provided its performance for 2023. BetMGM's fiscal year 2023 showcased robust financial performance.
Net revenues increased 36% year over year, reaching $1.96 billion, which came within the guidance range of $1.8-$2 billion. This growth was primarily driven by a 14% rise in same-state net revenues from digital operations, representing the company's solid footing in the burgeoning online gaming and sports betting sectors.
Key performance indicators across iGaming and Online Sports Betting also demonstrated notable improvements compared with the previous year. Metrics, such as average monthly active users, first-time depositors, hold percentages, bonus levels and net gaming revenue per active user, showed positive trends.
Despite reporting an expected EBITDA loss of around $67 million for the full-year 2023, BetMGM achieved EBITDA positivity in the latter half of the year, representing a promising trajectory toward profitability.
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Expansion Efforts Drive Growth
BetMGM's expansion efforts further solidified its position as a leading operator in North America. With a presence in 28 markets and access to nearly half of the adult population, the company launched operations in four new markets, including Ohio, Massachusetts, Puerto Rico and Kentucky, both online and through retail channels. BetMGM attained a substantial market share of 14% in Sports Betting and iGaming in the United States and 22% in Ontario.
The company's strategic initiatives, including securing market access with Charlotte Motor Speedway in anticipation of the upcoming legal sports betting market in North Carolina, underscore its commitment to future growth.
The key improvements in its digital sports and iGaming products have positioned the sports betting platform to invest competitively in brand development, driving both player acquisition and retention. Looking ahead, BetMGM reiterated its target to achieve $500 million EBITDA in 2026.
In the past three months, the company’s shares have gained 19.9% compared with the industry’s growth of 11.8%.
The company currently carries a Zacks Rank #3 (Hold).
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