It's going to be another good year for BetMGM, as it announced its 6-month revenue for the year: an astonishing $1 billion, which is an increase of last year's same-period revenue by 6%. BetMGM has previously stated that this year is the "year of investment" and it seems that its plans might just come to fruition.

In its financial update for the first-half of 2024, BetMGM announced a net revenue of $1 billion, marking a 6% increase compared to the same period last year. This growth reflects the company's robust performance in the competitive landscape of online sports betting and iGaming. In addition, the operator's share of the market in North America for January to June stood at 13%, based on gross gaming revenue share for both online sports betting and iGaming in the US and Canada (Ontario).

The second quarter of 2024 showed promising momentum for BetMGM as well. Net revenue increased by 9% year-over-year and 3% from the 1st quarter. The most notable gains were in iGaming and sports betting, where net revenue increased by 18% for iGaming and 16% for sports betting. These increases underscore the benefits accrued from Entain Plc's acquisition of Angstrom Sports in July of 2023.

Adam Greenblatt, BetMGM Chief Executive Officer, said in a statement that their online sportsbook players have been enjoying Angstrom-enabled product capabilities since the start of the baseball season, and BetMGM looks forward to additional players enjoying this capability across their wider sports offering leading to the start of the NFL.

Angstrom Sports, a data and analytics company, controls predictive modeling to create multifaceted forecasting capabilities and pricing. This acquisition has evidently boosted BetMGM's product offerings, enhancing the overall player experience. Additionally, Entain is the owner of one-half of BetMGM, while MGM Resorts International controls the other half, making it one of the largest online sportsbook operators in the US.

BetMGM welcomes progress - but competition is still as fierce as ever

Despite the positive revenue growth, BetMGM reported an EBITDA loss of $123 million for 2024's first half. However, CEO Adam Greenblatt emphasized that the company exceeded its retention and customer acquisition goals in the same period. This achievement is particularly significant as it comes when rivals FanDuel and DraftKings continue to dominate the online sports betting industry, controlling over 70% of the market.

But BetMGM has found notable traction in iGaming, where its share of the North American market is 22%. The online casino sector could play a crucial role in BetMGM's expectations for higher revenue growth in the second half of the year, all the way into 2025. The operator's advantage in iGaming is partly attributed to the complementarity of online gaming with land-based casino operations. MGM Resorts, which has one of the largest portfolios of US casinos and a significant rewards program, enhances BetMGM's advantage and competitive edge.

However, it is important to note that internet casinos are currently legal in only six states: Delaware, Connecticut, New Jersey, Michigan, West Virginia, and Pennsylvania. It's apparent that legislative changes will be essential for further growth in the sector.

BetMGM: 2024 is a "Year of Investment"

BetMGM has declared 2024 a year of investment. The company aims to build on its strengths in iGaming, which already delivers over $400 million annually. This investment strategy includes an increased marketing focus in the second half of the year. Despite forecasting an EBITDA (earnings before interest, taxes, depreciation, and amortization) similar to the first six months, BetMGM plans additional investments subsidized by bank debt. The company is still confident in its ability to achieve $500 million "in the coming years."

The company said in the statement that coupled with an improving sportsbook offering and building on the strength of BetMGM in iGaming, it expects a greater than planned marketing investment in iGaming in the second half of the year.

As BetMGM continues to navigate the competitive landscape of online sports betting and gaming, its strategic investments and innovative product enhancements signal a commitment to long-term growth and market expansion. The coming months will be crucial as the operator aims to solidify its position and capitalize on emerging opportunities in the industry.