An international betting and gaming group is profiting from legal sports betting in America.
Entain generated $5.2 billion in total net gaming revenue during the fiscal year ending December 31, 2022 — a 12% increase year-over-year. The London-based company, which is a part-owner of BetMGM through a 50/50 joint venture with MGM Resorts, is one of the largest company gaming and betting companies in the world with a portfolio of more than 25 brands.
“We have a business model that is truly diversified across more than 40 territories, a platform that gives us demonstrable competitive advantages,” said Entain CEO Jette Nygaard-Andersen.
Entain posted revenue growth in FY2022 thanks to its U.S. sector. The company’s BetMGM business generated $1.4 billion in revenue in FY2022 — a 71% increase year-over-year. The results surpassed Entain’s previous revenue guidance of $1.3 billion for BetMGM in 2022.
BetMGM reported an EBITDA loss of roughly $440 million in FY2022, which was in the range of the company’s prior guidance. As one of America’s top online sports betting sites in terms of market share, BetMGM is projected to report between $1.8 billion and $2 billion in revenue in FY2023.
The sportsbook will take some of those profits to improve its product in F2023. BetMGM expects to invest $150 million in its business this year, bringing its total to $1.25 billion.
Coast to Coast
BetMGM is live in 25 jurisdictions across the country, which gives the sportsbook access to roughly 48% of the adult population in the U.S. In 2022, BetMGM launched online wagering in six new markets, including Maryland, Kansas, Illinois, and New York — the largest in America.
On January 1, the sportsbook went live in Ohio with both online and retail sports betting legalized. It has gained sports betting licenses in Massachusetts, which will go live on March 10. BetMGM has wasted no time establishing itself in the market as an official partner of the Boston Red Sox.
Outside the U.S., BetMGM has market access in Ontario — Canada’s most populous province.
Under Supervision
Entain’s growth in the U.S. comes amid regulatory scrutiny overseas.
Last year, the company was fined $20.3 million by the Gambling Commission — the U.K.’s gambling regulator. Entain was hit with a record-breaking penalty for anti-money laundering and social responsibility failures at both its online and retail sports betting businesses. The company owns roughly 2,700 gambling shops in the U.K. through Ladbrokes Betting & Gaming.
Earlier this week, Entain Australia was fined $51,000 by the Northern Territories Racing Commission — Australia’s betting and gaming regulator. The watchdog fined Entain for allowing a wealth manager to orchestrate a $2.1 million sports betting fraud scheme.
Entain’s problems in the U.K. and Australia have caused the company to focus on maintaining integrity within the U.S. As a result, BetMGM collaborated with other U.S. sports betting sites to establish the 12 Principles of Responsible Online Gaming — a new industry benchmark.
Despite the effort to curtail future issues, Entain’s regulatory dilemmas and recent economic uncertainty throughout the world have impacted the company’s overall value. On Thursday, shares of Entain hovered around $16 — down around 21% since March 2022.
