BetMGM learned from its marketing and spending mistakes
MGM Resorts’ CEO Bill Hornbuckle expressed strong confidence in the growth trajectory of BetMGM, the joint venture with Entain, projecting an increase in EBITDA by $250 million (£193.3 million/€229.9 million) by 2025. This optimism is fueled by ongoing product innovations, including features such as single-game parlays, omnichannel capabilities, and a unified wallet system.
In a presentation at JP Morgan’s Gaming Conference on March 13, Hornbuckle acknowledged that while BetMGM is not the fastest-growing sportsbook in the United States, it has made significant improvements, doubling its previous growth metrics. “I know we’ve stopped losing market share,” said Hornbuckle. He highlighted positive trends in user engagement, particularly during January, February, and March, noting that market signals suggest the company is well-positioned to meet its financial targets.
### Strategic Insights and Market Adaptation
Hornbuckle elaborated on BetMGM’s operational efficiency, stating, “The flow-through is about 70%. Historically, we’ve learned valuable lessons regarding our marketing strategies and expense management.” Reflecting on past missteps, he admitted that a $13 million investment in a Super Bowl advertisement in 2023 may not have been the wisest decision, conceding, “To be honest, it wasn’t a great commercial.”
In its financial report for 2024, BetMGM recorded $2.1 billion in revenue—an increase of 7%—though it faced a negative EBITDA of $244 million. Hornbuckle remains optimistic about turning this around going into 2025, fueled by further enhancements to product offerings and refined marketing strategies.
He emphasized that BetMGM enjoys robust brand recognition across the 28 states where it operates, bolstered by improvements in live betting services through the Angstrom platform. “Our single-game parlay cards have seen consistent double-digit growth in their share of our business each quarter. We believe we can achieve an 11%-12% margin on certain products,” he added.
### Capitalizing on New Markets: Brazil as a Focus
Hornbuckle is particularly enthusiastic about prospects in Brazil, where BetMGM has secured one of the first sports betting licenses. The company faces stiff competition from numerous legal operators in the market. He underscored the strategic partnership with Grupo Globo, the prominent LatAm media conglomerate, which was established in September.
“Everyone is facing challenges in attracting online users in Brazil due to a stringent sign-up process that requires facial recognition,” Hornbuckle explained. “We believe we have a unique advantage through our collaboration with Globo, leveraging their extensive database of movie subscribers and other products. Our focus is to intensify these efforts over the next four to six weeks.”
He further emphasized the significance of Grupo Globo, stating that its viewership in Brazil rivals the combined reach of CBS, NBC, and Disney in the United States, cementing the partnership’s potential to drive user acquisition and market share growth.
### Conclusion: A Strategic Roadmap Ahead
As BetMGM navigates the competitive landscape of the U.S. sports betting market, the leadership’s commitment to innovation and strategic partnerships positions the brand for sustained growth. Continuous product updates and improved marketing practices will be essential as the company strives to enhance its market presence and profitability in both domestic and international markets. The coming years will be critical for BetMGM as it aims to solidify its status as a leader in the rapidly evolving gambling industry.
