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Fartanulo: BetMGM got out of the red and went into the black
BetMGM came into existence in 2018 as a joint venture between MGM Resorts and Entain. The bet was on the union of the offline giant and the international iGaming holding. Money was poured into the project in a big way: by 2022, $1.1 billion was pumped there, and in 2023, Entain added another 203 million pounds to buy Angstrom, a sports analytics service.
On paper, everything looked confident, but the payback in 2023 did not happen.
A hard minus and a revision of the strategy
024 turned out to be a very gloomy year: EBITDA went into the red by $244 million. In summary:
ā Focused on the VIP segment, cutting off unnecessary spending on low-income players.ā Cut the marketing budget, including abandoning advertising projects like $13 million for the Super Bowl.ā Connected MGM's land-based infrastructure to the game: launched a common wallet for online and offline.
The move turned out to work: at the end of 2024, revenue from the sportsbook alone increased by 60%.
Tipping point
In 2025, BetMGM finally came out in the black. Total revenue grew by 36%, the US market share was fixed at 14% - and this was in the face of fierce competition from DraftKings and FanDuel.
The company's CFO, Gary Deutsch, even allowed himself to refuse a $150 million loan: now BetMGM forecasts EBITDA at about the same figures and is preparing to repay debts to investors.
Total
BetMGM has proven that in American betting you can not only burn millions on marketing, but also build a working business model. The company took longer than planned to do this, but broke the duopoly of DK + FD and pulled itself from minus to plus.
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