BetMGM co-owner Entain‘s leaders say the brand will spend $750 million in 2024 to acquire new online gamblers. Entain officials said on Oct. 17 that the “new player acquisition” outlay will help with its strategy to grow BetMGM’s US market share in 2025. What that may mean for online casino bettors is more attractive promotions and more commercials.
It also hints that Americans may experience more competition among top operators that arguably benefits them, such as the Oct. 18 announcement by DraftKings that its Michigan DraftKings Casino jackpot surpassed $6.46 million. That still unclaimed prize is higher than the previous historic online casino jackpot. On Aug. 19, a BetMGM Casino player in New Jersey won $6.45 million.
BetMGM, owned by Entain (Entain PLC 805,80 +0,02%) and MGM Resorts International (MGM Resorts International 38,34 +2,60%), once held the plurality of America’s iGaming market share. FanDuel Casino now holds that honor and BetMGM officials want to regain that No. 1 US online casino operator title.
Entain CEO Gavin Isaacs said the following during the company’s Q3 2024 trading update:
This year, we want to make our numbers. Next year, we will make market growth … And then we want to start really growing.
Oct. 17 was his first earnings call after Isaacs started work on Sept. 2.
Entain CFO and Deputy CEO Rob Wood joined Isaacs on the call.
Wood said:
We continue to invest in marketing behind our improving product and player experience.
When online gambling operators spend on “new player acquisition,” it usually means bettors will see more attractive promotions and an uptick in marketing. In BetMGM’s case, Wood noted that sports bettors are seeing marketing that may entice them to gamble with BetMGM’s online casino brands.
BetMGM is live in the following states:
- Michigan
- New Jersey
- Pennsylvania
- West Virginia
Three of the remaining iGaming states are served by a single operator, with only Connecticut offering DraftKings Casino and Mohegan Sun Casino.
Bally Casino is Rhode Island’s operator, BetRivers serves Delaware, and WSOP Online — operated by Caesars Entertainment (Caesars Entertainment 38,49 +0,63%) — offers Nevadans online poker.
Who Are BetMGM’s ‘New’ Online Gamblers?
BetMGM was the top US iGaming operator before DraftKings (DraftKings 43,65 +1,44%) claimed the throne in its Q3 2023 earnings call. Then, DraftKings Casino and Golden Nugget Casino held 30% of market share.
In Q2 2024, FanDuel Casino pulled that title away from DraftKings by holding 25% of the market.
So, much of the competition between the Big Three online casino operators is to yank market share away from each other, as well as smaller brands.
Single-digit percentages change the game. For instance, Wood said on Oct. 17 that BetMGM holds 22% of the US iGaming market. Going forward, he expects “double-digit growth” for BetMGM’s iGaming brands.
However, Isaacs and Wood used the same wording for BetMGM’s current status: stabilized.
Wood added:
We have been clear that 2024 is a year of investment for BetMGM and we’re cautiously optimistic that early indicators show we’re gaining momentum.
BetMGM’s net gaming revenue increased 18% in Q3 2024 vs. Q3 2023.
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