MGM Resorts International and Entain announced at their recent Investor Day that BetMGM expects to generate $1 billion in net revenue from operations next year.
The two gave a business update on the joint venture, outlining the main drivers of its strong momentum and potential aspirations as it seeks to become the market leader in the United States.
Bill Hornbuckle, MGM’s CEO and president, praised the betting and gaming company’s’significant market share’ increase in 2020 earlier this year, praising the company’s January launches in Iowa, Michigan, and Virginia in particular. The goal of being live in 20 markets by the end of the year was also emphasised.
‘Market leader across the US in igaming’
BetMGM is now being hailed as the “market leader across the US in igaming,” with a market share of 23 percent in the three months leading up to February 2021, and is expected to overtake the number two position in US sports betting and online gaming in general.
Despite the continued acceleration in North America, BetMGM estimates the total addressable market in the US and Canada to be about $32 billion, with long-term market share in the US and Canada estimated to be in the range of 20 percent to 25 percent.
BetMGM’s CEO, Adam Greenblatt, explained: “BetMGM has demonstrated strong momentum, building a leading position in igaming and is on track to be the number two operator across sports betting and igaming in the US.
“The US market is shaping up to be even larger and more exciting than we originally envisaged, and we now believe it will be worth $32bn, including Canada.
“Furthermore, the outstanding progress that the team has made so far means that we now expect to achieve 20-25 per cent US market share long term. The unique partnership of Entain’s proprietary technology platform and MGM Resorts’ leading brand and loyal customer base gives us the best resources to win in this market.”
Entain and MGM Resorts are expected to spend nearly $450 million this year, on top of the $210 million already spent by the end of 2020.