Sports betting brand BetMGM raised its 2020 revenue forecast following strong performance in the fourth quarter during which the company saw the number of active customers nearly double the one from the previous quarter.
Double Digit Raise in Revenue Forecast
BetMGM announced in October expectations for net gaming revenue (NGR) between $150 million and $160 million, but the company now expects NGR to come between $175 million and $180 million, up 12% to 16% from its previous forecast.
BetMGM chief financial officer Rob Wood informed analysts yesterday the sportsbook raised its overall market share reaching 12.5% across the whole US market and managed to firmly position itself as a top-three operator.
BetMGM’s share of online sports betting for the last 3 months across states where the operator launched its app last year was 21%, while in Pennsylvania the company reached 8% of the wagering and online gaming market, Rob Wood outlined.
“Because of the successful launches and strong growth in New Jersey, active weekly digital sports bettors at the end of the year were more than triple the actives that we saw during Super Bowl week earlier in the year.”
Rob Wood, CFO, BetMGM
As the number of BetMGM’s active customers in the fourth quarter nearly doubled compared to the previous 3 months, Rob Wood strongly believes momentum is building.
Access to M life Rewards
Entain, one of the 50-50 partners in the sports betting joint venture, released a Q4 trading update yesterday, paying special attention to the performance posted by BetMGM, noting the significant progress the business made “in every part of its operations”.
After the launch of a single nationwide app in October, looking to make it easier for bettors to gain access to BetMGM’s product offerings, the company saw the number of app downloads for the month jump by 70% compared to the previous month.
Entain also highlighted the role of the M life Rewards, the loyalty rewards program of its partner MGM Resorts customers of BetMGM have access to, as it proved to be a valuable tool, as for customer acquisition, so for ongoing engagement and retention.
BetMGM, which is already live in 12 states, after launching its sports betting and online gaming app in Michigan today, following the launch in Iowa earlier in the year, is “firmly on track to realising its ambition of being a leader in the US sports betting and iGaming market, which is estimated to be worth approximately $20bn by 2025”, Entain’s update concluded.