Even as professional sports suffered a setback during the pandemic, not least in the United States, US sports betting continues to grow exponentially in popularity, which means that so too do the profits posted by the leading players in the field. Prime among them would have to be the well-respected household name and sports betting juggernaut, BetMGM, who have posted a 2022 revenue forecast of more than $1.3 billion.
All the major providers of sports betting services online will be showing great profits as more and more states pass legislation legalizing betting, both offline and online, after years of holding up the process in arbitration. As more states legalize sports betting, you can expect to see similar forecasts posted by the likes of DraftKings and Fanduel across the United States, with profits no doubt rising even further in the coming years.
New York is the latest major state to legalize sports betting and this month saw the state make over $150 million in revenue within the first ten days of that legislation coming into law. What this means is that the providers who have been given a license to operate must now fight it out with each other to get the custom and patronage of the residents of the Big Apple, and one way to do so is to make sure that they offer the best gambling odds in the region. With New York state being one of the most populous in the United States of America, it represents a gigantic market that has just opened up to sports fans of all backgrounds.
BetMGM has stated that it was gaining in terms of the market share, with the brand set to hit its long-term target of 20%-25% in the US sports betting and iGaming market over the coming years.
Their revenue for 2021 is expected to be in the region of $850 million, a rise of five times what it posted in 2020, which was already well up from the year before. Such is the growth that BetMGM is experiencing of late that even in the current turbulent economic climate, its highly optimistic growth goals seem to be entirely within reach – may even be underestimated by how well things have gone for them of late..
With sports betting and iGaming becoming ever more popular with sports fans and gamers and moving ever upwards on the balance sheet, BetMGM intends on expanding its Bingo area as well as its Racing app, seeking to push these products to more and more US states. This even as their central sports betting apps continue to rise and rise in popularity.
These gains are indeed promising, and BetMGM CEO Adam Greenblatt believes the coming year will be crucial to their ongoing growth, as he has said in a statement recently to the oress:
“2022 is a critical year, where the leading national operators will reach critical mass, paving the way for the next phase of the sector’s financial evolution. With the support of our shareholders, our technology and data platform, brand, and omni-channel strategy, we look to the future with confidence.”
BetMGM currently operates in 19 states and is set to launch in two more, Illinois and Louisiana, and is seeking to make improvements with its interface as well as focusing on a one-game parlay product, which will give them higher margins, hence such a move. Illinois and Louisiana may not have quite the market that New York does but these are significant states with major metropolises holding countless new customers for BetMGM.
As BetMGM moves head first into the newly opened and already highly competitive New York market, becoming the fifth provider to do so after BetRivers, Caesars, DraftKings, and FanDuel, it would be fair to say that growth will continue to impress in the coming months. 2020 was a huge smash for the company but with New York and its highly lucrative new market now on hand, 2021 is all but guaranteed to shatter all expectations for the past couple of years.
The move to consolidate its operation in New York with its new license to operate in the state, means that it is a massive, game-changing step and one that Greenblatt is obviously very excited about:
“With today’s monumental news, we’ll now be able to fully activate our relationships with MGM Resorts’ Empire City Casino and Madison Square Garden. We look forward to offering customers in New York unique experiences that they can’t access on any other platform.”
As established and popular a brand as BetMGM so obviously is – it is, after all, a partnership between Entain Plc and the successful, international chain of casino resorts, MGM Resorts International – it’s the gold standard on which smaller, less established online sports betting brands will have to measure themselves against. That it offers a wide range of sports betting along with various online slots and general gambling games gives it a definite leg up over its more limited competitors, which is especially important in as huge and as demanding a demographic as the state that is home to the unofficial capital of the world, New York City.
Even with its major lead in the market, though, even BetMGM cannot afford to rest on its laurels for so much as a minute. Along with fierce competition from the four betting companies that have set up shop in New York, four other brands will join these five in battle for the state’s invaluable gaming market. The four other brands, Bally Bet, PointsBet, Resorts World, and WynnBET, are only the next group of competitors who will be joining the ever-growing list of operators in the upcoming months and years.
This extra competition is only good news for consumers, however. It means that even already impressive online gaming portals like BetMGM will need to keep upping its game and offering only the most secure, cheapest, user-friendly, attractive and diverse gaming experience as possible.