Global sports betting and gaming firm Entain plc has posted a trading update for the financial year to December 31 2020 and October 1 to December 31 2020, citing continued momentum in the US, specifically with BetMGM, its joint venture with MGM Resorts.
Looking at trading in the round, the firm reported full year online net gaming revenue as +27% and Q4 as +41%, marking its 20th consecutive quarter of double digit online NGR growth. Sports NGR benefited from strong margins, with full year margins up 1.6pp and Q4 margins up 2.4pp.
Turning to progress in the US, Entertain advised investors that BetMGM has gone from strength to strength having gone live in 11 states following the launch in Iowa earlier this year and with Michigan launching this Friday. “The business has made significant progress in every part of its operations, leading to a highly successful launch program in Tennessee in November, which set the standard for future day one launches,” it noted.
Tracking developments in 2020, the company stated: “In October, a single nationwide app was launched making it easier for customers to access our sportsbook and gaming products. Including new state launches, downloads of BetMGM apps have increased by some 70% compared to September 2020. During the summer, integration with the Yahoo Sports platform provided Yahoo Sports customers with a seamless experience of betting with BetMGM.”
It added: “Over the three months to November 2020, BetMGM reached a market share of 18% in sports-betting and igaming in the states in which it is live. It also has a market share of 21% in online sports in states which launched January to November 2020. Across all US states, market share reached 12.5% in November.”
According to the update, during the year BetMGM grew its online NGR by over 130% and is expected to deliver total NGR of between $175m – $180m for 2020, ahead of the firm’s Q3 guidance of $150m – $160m. “In summary, BetMGM is firmly on track to realizing its ambition of being a leader in the US sports betting and igaming market, which is estimated to be worth approximately $20bn by 2025,” it said.
Shay Segev, Entain’s outgoing CEO, commented: “In an exceptionally challenging year, our strong performance has been driven by a business model that is highly diversified across a wide range of products, brands, territories and channels. Q4 has been another successful period for us, and we are particularly pleased with the momentum that we are seeing in the US. BetMGM continues to go from strength to strength and is now live in 11 states, plus Michigan will be launching online tomorrow.
“As ever, we remain deeply aware of our responsibility to provide our customers with the safest possible experience while using our products, and to that end our new technology-based Advanced Responsibility and Care program is heralding a new era in player protection.
While the short-term outlook remains uncertain as a result of the ongoing impacts of COVID-19, we have entered 2021 with good momentum and remain as confident as ever in Entain’s longer term prospects.”