MGM and Entain Plan to Invest $450 Million More in Web-Betting Venture
(Bloomberg) -- MGM Resorts International and Entain Plc plan to put an additional $450 million into BetMGM this year, bringing their total investment to $1.1 billion as they expand their online betting venture to new markets.
The companies project more than $1.3 billion in revenue for the business this year, up from $850 million in 2021, according to a statement Wednesday. BetMGM’s operating loss last year could be as high as $440 million. They see positive cash flow in 2023.
BetMGM, which was founded in 2018, now offers online wagering in 19 jurisdictions. It is the second-largest player in sports betting and online casino games where it operates, with about 24% market share overall, the companies said.
“All of our gaming states continue to surprise on the upside,” Adam Greenblatt, BetMGM’s chief executive officer, said on a call with investors Wednesday. “The market is moving to relatively exciting stages.”
MGM shares fell 1.5% to $43.19 as of 10:45 a.m. New York time. Entain was up 1% in London. The companies are 50-50 partners.
“We’re delighted with how it’s gone,” he said. “We’ve broken all records.
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