The co-owner of a major legal sports betting operator reported favorable third-quarter results.
Entain — which owns a 50% stake in BetMGM — saw total group net gaming revenue increase by 7% in Q3 2023 compared to the same period last year. The sports betting and gaming giant posted the growth behind its online business, which saw revenue increase 9% compared to Q3 2022.
"Entain has undergone a profound transformation over the last few years, and now has strong foundations from which to move into its next phase of growth."
- Entain CEO Jette Nygaard-Andersen
Its total active customers also grew by 15% in Q3 2023 compared to the same period last year.
“Entain has undergone a profound transformation over the last few years, and now has strong foundations from which to move into its next phase of growth,” said CEO Jette Nygaard-Andersen.
Entain, which also owns UK betting brand Ladbrokes and South American market leader Sportingbet, is also reaping the benefits of its 50/50 venture with MGM Resorts. BetMGM generated $458 million net gaming revenue in Q3 2023 — a 15% uptick year-over-year.
The online and retail sportsbook, which is the third-largest in America behind FanDuel and DraftKings, has an 18% market share in jurisdictions that it operates in, excluding New York — the largest online gaming market in the United States. BetMGM has continued to be a leader in the North American iGaming industry with a 26% market share across its licensed U.S. states.
Entain projects BetMGM will generate between $1.8 billion and $2 billion in revenue in FY2023.
Growing parent companies
BetMGM’s co-owners Entain and MGM Resorts are continuing to bolster their businesses.
In July, Entain agreed to purchase sports forecasting and data analytics company Angstrom Sports for roughly $160 million. Earlier this year, it also acquired sportsbook and casino operator BetCity for $500 million and media company 365scores in a deal valued at around $160 million.
MGM Resorts has taken steps to expand its reach with the help of Entain by bringing its sports betting operations to the UK. Entain and MGM Resorts launched BetMGM in the UK as part of MGM Resorts’ plan to expand into international markets. The sportsbook’s offerings in the UK are powered by the technology of Swedish online gaming company LeoVegas.
BetMGM also expanded its reach in the U.S. with the launch of sports betting in Kentucky in September. The state reported a nearly $250 million handle during its first month of wagering. Kentucky has also awarded sports betting licenses to Fanatics, DraftKings, and Caesars.
