BetMGM CEO Adam Greenblatt believes no new states will legalize online casino during 2023.
Therefore, the US online casino market leader is working âbehind the scenesâ this year to help educate legislators and retail casino owners about the benefits. That will hopefully yield an active 2024 in legal online casino launches, he said during todayâs BetMGM Business Update.
Greenblatt said of some retail casino leaders opposing online casino launches:
I do not believe that market anomalies, market distortions, retain over time.
He said BetMGMâs investment in education, thatâs âsowing the seedsâ for new legislation, will help alleviate opponentsâ concerns. So Greenblatt believes US online casino launches are more likely in 2024.
Meanwhile, online casino bills are pending in Indiana, Maryland, and New Hampshire. Online poker legislation is in Kentucky and New York committees.
Stock prices for BetMGMâs owners, Entain (Entain PLC 847,20 +1,27%) and MGM Resorts International (MGM Resorts International 33,77 -0,50%) appeared stable after todayâs business update.
BetMGM Remains the US Online Casino Market Leader
In Q4 2022, BetMGM again held the plurality of the online casino market share, or 30%, in the states where it operates.
Greenblatt said today:
So sure, weâre the one to get.
In one of those markets, Michigan, BetMGM has remained No. 1 since the stateâs marketplace launched on Jan. 22, 2021. There, BetMGM earned more than $1 billion in gross gaming revenue (GGR) from January 2021 to December 2022, according to the Michigan Gaming Control Board (MGCB).
BetMGM CFO Gary Deutsch said during todayâs call:
The gaming states have all beat our expectations.
States that offer online casino and sports betting turn a profit faster for BetMGM than sports-only jurisdictions, Deutsch said.
Plus, Ontario is already reaching profitability after launching on April 4, 2022, the CFO said.
Greenblatt added that BetMGMâs US online casino states are entering their third year of operation.
Marketing Remains a Necessary Cost
During last yearâs BetMGM Business Update, Greenblatt said online gambling operators needed to rein in their marketing and promotional spending.
Today, he sounded more excited about the form of business spending.
Greenblatt said:
We value flexibility, and we follow the data. ⌠Weâre advertising more on TV.
So even though directly marketing to gamblers through email and other channels tends to cost less, BetMGM is upping its brand marketing investment, he said.
Conversely, BetMGM will pull the plug on âvery, very short-termâ performance marketing efforts if theyâre not working. Monitoring those investments daily ensures BetMGM allocates its money toward the best return on investment (ROI), Greenblatt said.
Greenblatt said of marketing spending in the online gambling industry:
The early exuberance ⌠is abating, somewhat.
This is âwave twoâ of online gambling marketing spending, Greenblatt said. BetMGM is using an omnichannel approach, mixing brand and direct marketing, promoting online gambling to MGMâs retail players, and using predictive models to determine which bettors to make an effort to retain.
Deutsch agreed:
Our data science has gotten excellent.
Predictive modeling shows BetMGM which players will evolve and how, which benefits bonusing. That means the brand can use promotions intelligently.
Deutsch said:
The marketing spend is coming down as a result of the acquired players.
Thatâs not to say that BetMGM isnât paying attention to its online casino, poker, and sports betting competitors.
Greenblatt said:
We pay very close attention to the competitive landscape, but we run our own race.
Meanwhile, BetMGMâs forecast is for the online gambling brand to become profitable during the second half of 2023. Thatâs even with the increased marketing costs that will be associated with the new online sports betting states of Maryland, Massachusetts, and Ohio.
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