Maintaining the momentum
Sportsbook and iGaming brand BetMGM experienced a busy 2020. It launched in seven new states over the course of the year, adding three more states last month. That expansion is far from slowing down, according to MGM Resorts CEO Bill Hornbuckle.
BetMGM’s mobile sports betting app, jointly owned by MGM Resorts and Entain, is currently available in Michigan, Pennsylvania, New Jersey, Nevada, West Virginia, Tennessee, Colorado, Iowa, and Virginia. In a statement Wednesday, Hornbuckle said BetMGM will be available in 20 markets by the end of 2021. He did not specify which ten states BetMGM would expand into.
the operator’s revenue fell 60% year-on-year, to a total of $5.2bn
Hornbuckle’s statement accompanied MGM’s fourth-quarter and full-year results for 2020. Last year, the operator’s revenue fell 60% year-on-year, to a total of $5.2bn. Despite the decline, Hornbuckle praised the performance of BetMGM, which he said “gained significant market share” throughout the difficult year.
A 2020 to forget
The coronavirus pandemic severely impacted MGM throughout 2020, creating significant financial losses through casino closures and restrictions.
This impact continued into the year’s fourth quarter. According to its latest trading update, the casino operator generated $1.5bn in the period, a drop of 53% year-on-year, while operating loss totaled $364m. For the full year, Las Vegas properties posted a revenue drop of 66%, Macau 58%, and all other US locations 34%.
Despite a difficult 2020, Hornbuckle outlined a positive outlook for 2021 in Wednesday’s statement. He expressed confidence in the company’s long-term recovery as restrictions continue to ease. The executive said maintaining a strong balance sheet and continuing BetMGM’s expansion would be key to future recovery. In January, the company also reaffirmed its commitment to the Macau market.
BetMGM buyout thwarted
MGM and Entain, formerly known as GVC Holdings, first partnered in July 2018 in an attempt to expand into the US sports betting industry. The two companies formed Roar Digital in January 2019, which eventually became sportsbook brand BetMGM.
MGM made a second and final offer of $11bn
At the beginning of 2021, MGM Resorts offered to acquire UK-based Entain, partly in an attempt to take full control of the BetMGM business. After Entain rejected a $10bn bid outright, MGM made a second and final offer of $11bn. Despite the $1bn increase, Entain said the total still “significantly undervalues the Company and its prospects.”
MGM announced on January 19 it would not be revising its bid, instead reaffirming its dedication to the joint venture. In a statement, Hornbuckle said MGM remained “committed to working with Entain to ensure BetMGM’s strong momentum.”