Since its inception in 2018, BetMGM has made waves in the ever-changing landscape of online gaming. Born from the strategic partnership between industry titans Entain and MGM Resorts, BetMGM has been led by CEO Adam Greenblatt. The company has consistently matched strides with daily fantasy giants like DraftKings and FanDuel, despite not having a legacy database like these competitors.
Unlike its competitors such as Caesars, Bally’s, Penn National, and 888, BetMGM hasn’t needed to acquire to grow, onboard new technology, or seek new partners. Instead, they’ve grown organically and rapidly, establishing a strong presence in 20 states, as well as Washington DC, Puerto Rico, and Ontario in Canada.
Focus on Consistent Performance and Growth
The main strategy that sets BetMGM apart from its competitors is consistency since its launch. The company’s execution has been steady, as indicated by its impressive revenue projections for 2023, which sit between $1.8 billion and $2.0 billion. The first quarter of 2023 saw a 76% year-on-year increase in net gaming revenue (NGR) up to $476 million.
In a recent interview, Greenblatt attributes this success to the strategic refinement of their product and promotional strategy. A focus on bonus optimization and understanding their player base has proven incredibly productive. This combination of refining the product and the promotional strategy leads to higher returns and helps the company’s bottom line.
Profits on the Horizon
BetMGM expects to reach profitability in the second half of 2023. A key part of this profitability strategy is the expansion of its NGR margin. Greenblatt intends to achieve this without significant changes to the company’s operational structure.
State-level contributions to profitability are under scrutiny. Greenblatt is leading the team to assess the value of investments across various states. The company is reallocating capital to states where the contribution is higher and dialing back in states where it’s lower.
The Future of Betting: Betting 2.0
The gaming industry has been debating the path to profitability. Betting 1.0 focused on speed to market and high customer acquisition spending. Now, Greenblatt posits that the product is becoming the key battleground in what he terms “betting 2.0.”
To refine and optimize BetMGM’s NGR contribution and reduce its tax burden, the company needs to bring money in. Greenblatt believes in creating a player-centric product that offers customers a good experience to keep them engaged.
The BetMGM Approach to Online Casino Gaming
Greenblatt’s laser focus on sports betting doesn’t detract from the online casino’s accomplishments. Under his leadership, BetMGM has upstaged long-standing market leader Golden Nugget Online Gaming (now owned by DraftKings) in New Jersey. Its exceptional performance extends to Michigan, Pennsylvania, and West Virginia. Even without having access to Connecticut or Delaware, BetMGM commands a total US online casino market share of 28%.
However, the addressable market for online casinos hasn’t expanded in 2023. Despite this, Greenblatt sees a growing political will for legalization, an optimism that signifies BetMGM’s long-term vision in the online casino market.
Whether legalization happens in 2024 or beyond, Greenblatt seems unperturbed, with his focus on supporting the political processes while keeping a firm eye on the company’s growth trajectory.
The ultimate goal, after all, is being the best sports betting and iGaming operator in the U.S., and Greenblatt’s leadership, as seen in BetMGM’s consistent performance, suggests the company is well on its way to achieving this.
In Conclusion
Greenblatt’s roadmap for BetMGM focuses on consistency, product refinement, strategic allocation of resources, and profitability. The CEO has a clear vision for his company to master its core business areas and make BetMGM the best sports betting and iGaming operator in the US. With a steady growth trajectory and a commitment to customer experience, BetMGM is geared up for an exciting, profitable, and industry-disrupting future.
