After telling investors it hoped to be profitable by the third quarter of 2023, BetMGM started making a profit during the second quarter of this year, company executives said during an investors call on Wednesday.
And that goal was reached early despite any preliminary funds BetMGM spent in preparation for its Kentucky launch.
“Our focus remains on building a sustainable, scalable and returns focused business with leading products that our players enjoy responsibly,” BetMGM CEO Adam Greenblatt said in a statement. “We look forward to the remainder of the year, buoyed by ongoing product improvements, tremendous support from our shareholders providing access to new assets and partnerships, and — above all — our extraordinary team at BetMGM.”
Kentucky launch could propel BetMGM to $2.2 billion in 2023 revenue
Buoeyed by launching BetMGM Sportsbook Kentucky on Sept. 28, Greenblatt expects to make $1.8 to $2 billion in revenue this year. Analysts at Jeffries predict BetMGM’s 2023 revenue could wind up closer to $2.2 billion, per Earnings + More.
With BetMGM already attaining profitability in Q2, its Kentucky sports betting launch will essentially be icing on the cake for Q3. If you recall, when betting companies made their 2023 revenue goals, Kentucky wasn’t expected to go live in 2023.
The KY online sports betting launch date — Sept. 28 — falls a couple days before the end of Q3. Any revenue gained from its Kentucky launch will, quite literally, be a nice cherry-on-top boost to an already ahead-of-schedule revenue timeline for 2023.
Gaining market access in Kentucky
BetMGM has not yet announced which Kentucky horse racing association it will partner with to gain access to the market.
But there is no world in which BetMGM does not launch in Kentucky.
A potential partner could be Revolutionary Racing-owned Sandy’s Racing & Gaming in Ashland. John Marshall, President and COO of Revolutionary Racing, recently told PlayKentucky it had selected its desired sports betting partner and that it was “a big name you would recognize.”
With DraftKings Sportsbook already having a pre-existing relationship with Churchill Downs Inc., it just might make the most sense to see BetMGM ink a deal with Sandy’s in Ashland.
