BetMGM Eyes Profitability In 2023, Fueled In Part By Kentucky Launch

Written By Matthew Bain on May 3, 2023 - Last Updated on July 27, 2023
BetMGM eyes profitable 2023 with help of Kentucky launch, from playkentucky.com

During their Q1 2023 earnings call on Monday, MGM Resorts executives announced they believe BetMGM will reach profitability in the second half of 2023. That’s when BetMGM Sportsbook is expected to launch in Kentucky.

“BetMGM is fully capitalized now, growing rapidly and turning toward profitability later this year,” said Jonathan Halkyard, MGM Resorts’ Chief Financial Officer. ” … We’ll reach that during the second half of the year.”

BetMGM’s 2023 projections almost certainly include costs and revenues associated with the Kentucky sports betting launch. Sportsbooks in the Bluegrass State must be able to go live by Dec. 28, 2023. However, state lawmakers hope sports betting, at least in the retail capacity, will go live by NFL season in Kentucky.

What BetMGM might look like in Kentucky

Kentucky will allow its nine horse racetracks and Kentucky Speedway to operate retail sportsbooks and partner with up to three online sports betting apps. Given its firm standing as the No. 3 online sportsbook in the US market, BetMGM will likely open a retail sportsbook and offer its sports betting app in Kentucky.

Kentucky is the only remaining state expected to launch sports betting in 2023.

Here are the top betting sites expected to launch in Kentucky distinguished by their competitive sports odds and wide array of betting choices:

There will obviously be costs tied to the launch of BetMGM Kentucky. For instance, Halkyard said MGM Resorts (which owns 50% of BetMGM alongside Entain) had $82 million in Q1 operating losses due to the “heavy acquisition period” associated with the Super Bowl, March Madness, and launches in Ohio and Massachusetts.

Kentucky launch costs

However, given the expectations of profitability, MGM Resorts executives must not project acquisition costs for Kentucky launch to be overly significant.

“The second quarter last year for us showed a little bit of profit, if you may recall,” said Bill Hornbuckle, MGM Resorts President and CEO. “The third quarter, like everyone, we bounced into or bumped up to football, which is always a big promotional push at the beginning of football. I don’t suspect that will change much.

“Obviously, there are a few players. We’ve all become a lot more disciplined, but I think it’ll be a little lumpy. But I think the bottom line will be going in the second half of the year. We’re going to show profitability in totality.”

Online casino product provides boost

BetMGM’s online casino product, no doubt, will factor heavily into a profitable 2023 as well.

In Q1 of 2023, BetMGM owned a 28% US market share for online casino gambling. When combined with sports betting, that market share was 17%.

Photo by Shutterstock.com
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Matthew Bain

Matthew Bain started as a Content Manager for PlayKentucky and other Catena Media sites in 2022. He covered the launch of Massachusetts sports betting and the Prop 26 vs. Prop 27 battle in California. Before that, he spent six years as a sports reporter and then deputy sports editor for the Des Moines Register, during which time he won nine statewide journalism awards, including the Genevieve Mauck Stoufer Outstanding Young Iowa Journalists Award. As deputy sports editor, Matthew oversaw the Register's recruiting coverage while also innovating the outlet's high school sports coverage. Matthew graduated from San Diego State and grew up in California, but he's somehow a Boston Celtics fan. Long story.

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