The company’s 50% share of operating income in the third quarter was $13 million, and executives expect that business to continue to grow, according to a presentation released Wednesday (Nov. 8) in conjunction with the company’s quarterly earnings call.
By comparison, in the same quarter a year ago, the company’s share of BetMGM’s operating loss amounted to a loss of $23.5 million, per the presentation.
“BetMGM is well on pace to achieve its forecast of $1.8 billion to $2.2 billion in net revenues from operations for the year,” MGM Resorts Chief Financial Officer Jonathan Halkyard said during the earnings call. “Our 50% share of BetMGM’s operating income in the third quarter was $13 million, marking our first quarter of profitability at BetMGM.”
BetMGM is now a top-three competitor in both U.S. iGaming and in U.S. sports betting and iGaming combined, MGM Resorts said in the presentation.
It also has a growing presence, as it is currently active in 28 jurisdictions and has secured or anticipates securing market access in a total of 34 jurisdictions, per the presentation. These counts do not include Carnival Cruises, where BetMGM also operates.
About 50% of the adult population in U.S. and Canadian jurisdictions have access to BetMGM iGaming and/or sports betting products, according to the presentation.
BetMGM offers sports betting and online gaming in North America through BetMGM and partypoker.
The firm is also launching the BetMGM brand in the United Kingdom, furthering its international digital strategy, according to the presentation. It is doing so with the help of LeoVegas, an MGM Resorts subsidiary that offers sports betting and online gaming through brands in several jurisdictions across Europe.
“Specific to our international digital efforts, in September, MGM Resorts and LeoVegas launched multimedia marketing supporting the BetMGM brand in the U.K. with Chris Rock leading the campaign,” MGM Resorts CEO and President Bill Hornbuckle said during the call. “The U.K. market is ideal for an initial launch due to its size and the brand recognition of MGM with U.K. customers.”