BetMGM is not a bottom feeder in the ranks of sportsbooks. The company comes in at number 3 or 4. But BetMGM has an approach to improve its standing by tapping into Las Vegas and more to the point, the sports scene in Las Vegas. .
That approach could grow adjusted earnings to $500 million in 2026.
As a result, 2024 has several goals for the operator:
- improving products;
- driving accelerated player acquisitions;
- aiding player retention;
- and bringing omnichannel to life in a more concerted way through product innovation and sports betting improvements in Las Vegas.
“As our sports product and player retention continue to improve, we will invest in player acquisition,” BetMGM CEO Adam Greenblatt said in a video conference call Monday with Wall Street analysts, according to CDC Gaming Reports. “We remain very confident in our data-driven flexible approach to marketing investment and predictive value models as well as our ability to create successful marketing partnerships that drive our business forward, the most recent of which is our partnership with Marriott.”
BetMGM has a loyalty marketing agreement with Marriott that will allow players to earn Marriott Bonvoy points while playing with BetMGM and convert BetMGM Rewards points into Marriott Bonvoy points. The deal goes live during the first half of 2024.
In 2024 “Nevada comes to life” for BetMGM, subject to approval by state regulators that will allow its flagship sports app to be used by the millions of visitors who visit MGM properties in Las Vegas every year.
“Once we are able to merge Nevada into our U.S. single-wallet platform, every BetMGM player returning from Vegas to one of our other markets will be able to seamlessly continue playing with their available balance as well as earn rewards points, which can be applied to their next trip to an MGM Resorts property,” Greenblatt said, per CDC.
MGM’s Las Vegas properties have 30 million room nights available each year, with more than four million Las Vegas visitors captured in their database and millions more who are anonymous players flowing through the floors, Greenblatt said.
“This population represents a deep and replenishing pool for new player acquisition as well as potent retention and reactivation mechanisms,” Greenblatt said. “The players who might play with a different app at home rediscover BetMGM in Vegas. We are especially excited about this because of what we know about our omnichannel players. These players are nearly three times more valuable than single-channel players, meaning they are contributing outsized revenue to our business.”
Greenblatt said Las Vegas is “getting stronger and more relevant” to its sports business over time. He cited the Strip’s sports venues of Allegiant Stadium, T-Mobile Arena and plans for a 33,000-seat stadium for the relocation of the Oakland A’s in 2028.
“We can see a path to three major U.S. sports being represented in Vegas,” Greenblatt said, per CDC.
BetMGM’s Chief Financial Officer Garry Deutsch told analysts that 2023 has been an important and satisfying year for the company. This is the third consecutive year it has added hundreds of millions in revenue to the top line, he said.
“It is a satisfying year because the business is developing as we have long projected, giving us ever greater confidence that we have our hands on the instruments of control for our continued ascension,” Deutsch said.
