MGM and Entain to Fund BetMGM with $450m towards Growth
The new $450 million funds that the two global businesses would be investing in BetMGM this year will be reportedly geared towards new markets and new products.
Although BetMGM has not recorded much in terms of profit, the companies are hopeful that gains will skyrocket with the launch of mobile betting in New York and more states legalizing sports betting.
Launched in 2018, BetMGM is currently live in 19 jurisdictions where it offers sports betting in all and casino gambling in only four of the 19 states.
BetMGM earned $850 million in revenue in 2020, which according to Adam Greenblatt, is a positive development “ahead of management expectations and up nearly five times from the prior year.”
The company anticipates $1.3 billion in net revenue in the new fiscal year. It further stated that “BetMGM is achieving market share in line with its long-term target of 20% to 25% in U.S. sports betting and iGaming.”
Twenty-six states of the U.S. and Washington, D.C., currently have an active sports betting market, while three more states launched the market in a limited form.