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BetMGM growth drives revenue up 22% at Entain in Q1

| By Robert Fletcher
Strong growth within the BetMGM business helped to push net gaming revenue (NGR) up at Entain during the first quarter of 2023 while the group also reported growth across all other segments.
grey markets

In a trading update, Entain said NGR was 22% higher year-on-year when including its 50% share in the BetMGM business it operates in partnership with MGM Resorts International in the US. Excluding US operations, NGR was still up 15%.

BetMGM NGR was up 94% to approximately $470m (£379m/€429m), in line with guidance of between $1.80bn and $2.00bn in revenue for the full year.

Entain said BetMGM had a 28% igaming market share and sports betting market share in the state where the brand is active, helped by successful Super Bowl and March Madness events and strong customer acquisition during the quarter.

Based on its ongoing performance, Entain said BetMGM remains on track to deliver positive earnings before interest, tax, depreciation and amortisation (EBITDA) in the second half of 2023.

Wider growth

Looking at the wider business, excluding the US, total online NGR was up 16%, which Entain again said was in line with expectations and demonstrated “strong” momentum.

Online gaming NGR jumped 25% year-on-year, while internet sports betting NGR was up by $8m, helped by a 3% rise in sports wagers. Entain also noted record levels of active customers in Q1, with this figure rising 19%.

Turning to retail, NGR for this segment was up 14% from Q1 of 2022, with sports bets rising by 17%.

“2023 is off to a strong start, with continuing underlying momentum across our operations around the world. We are delivering both financially and strategically, with a record number of active customers enjoying our products and we are executing on growth opportunities to further diversify and expand across regulated markets,” Entain chief executive Jette Nygaard-Andersen (pictured) said.

“In the US, BetMGM continues to grow in line with expectations and enjoyed a successful quarter which included the Super Bowl and March Madness.

“Looking ahead, we remain confident that our customer focus, diversification and proven ability to grow organically and through M&A will enable us to demonstrate further progress against our strategy.”

Q1 highlights

Other stand-out achievements in Q1 included Entain agreeing a long-term strategic deal with Tab NZ, the sole holder of a betting licence in New Zealand. Entain will support Tab NZ with delivering wagering and broadcast functions in the country for a period of 25 years.

Entain also completed its acquisition of Dutch operator BetCity for €450m and agreed a deal to purchase Tiidal Gaming NZ, the company behind esports betting developer Sportsflare.

In addition, Entain announced it would exit any markets “where it no longer sees a path to domestic regulation”. 

The group in 2020 set out plans for all revenue to come from locally regulated markets and said that it intends to be 100% regulated by the end of 2023. While it withdrew from many unregulated markets in the following years, it remained in certain jurisdictions that it described as “regulating”, such as Brazil.

Entain said it would “accelerate this process by exiting its few remaining markets where there is no clear path to market liberalisation via domestic regulation”. However, it will remain in “a small number of markets where it expects changes in regulation will enable it to obtain domestic licences in due course”.

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