During a recent earnings call, MGM Resorts International officials expressed excitement over what it’s calling a successful third quarter for BetMGM.
MGM Chief Financial Officer and Treasurer Jonathan Halkyard said the 92 days from July 1 to September 30 marked the first quarter of profitability at BetMGM. The sports betting giant had an operating income of $25.3 million in the third quarter. Net revenue was $458 million in the quarter, up 15% over the prior year.
“Our 50% share of BetMGM’s operating income in the third quarter was $13 million, marking our first quarter of profitability at BetMGM,” Halkyard said.
Officials told investors that success in regional markets was an important factor during the quarter. The Ohio sports betting market has become a primary focus for BetMGM. The goal is for the operator to become self-sustaining in the near future, and Ohio will likely play a significant role in that.
BetMGM looking to increase market share in Ohio
MGM has a significant presence in Ohio. The company helps run BetMGM Ohio as part of a joint venture with gambling company Entain. MGM also owns and operates the MGM Northfield Park racino in Northfield, Ohio.
MGM Resorts President and CEO Bill Hornbuckle said operations during July and August in Ohio helped build a solid start for the third quarter with a 2% increase in net revenue versus last year. He added that BetMGM’s turn into profitability will supplement MGM’s Ohio racino business.
MGM Northfield Park is the most profitable racino in Ohio. The racino generated $50.1 million in gross gaming revenue from July through September. That is over 22% of the Ohio racino revenue market share.
Meanwhile, the company is being supplemented by BetMGM Ohio. During that third quarter, the sportsbook generated $12.6 million in revenue with online and in-person betting. That’s just under 8% of the Ohio market share. Currently, DraftKings and FanDuel dominate the Ohio sports betting market. However, MGM could invest more into BetMGM if revenue from its casinos and racinos continues to be good.
BetMGM making improvements in Ohio
BetMGM ranks third in the Ohio sports betting market regarding lifetime handle and revenue. That is the case in most states the site operates in. However, the gap between BetMGM and sites like DraftKings and FanDuel is much wider in Ohio than in states like Arizona, where BetMGM is relatively close to cracking the top two.
MGM Resorts and Entain are expected to invest more into BetMGM in hopes of improving the site, increasing customer growth and focusing on growing the site’s overall sports betting share.
For example, during the summer, Entain purchased sports forecasting and data analytics company Angstrom. The acquisition will allow BetMGM to launch in-house generated same-game parlays for the MLB betting season next spring.
Improvements on the app are also going to reel in more customers. According to metrics from Google, the BetMGM Sportsbook app is now operating faster than DraftKings and FanDuel. The app’s loading time has been reduced by about 65% over two years.