H1 financial reports have continued to flood in and BetMGM became the latest operator to release its performance in the first half of 2024.
Reporting a strong H1 2024, BetMGM revealed that net revenue from its operations reached one billion dollars which the firm’s CEO Adam Greenblatt stated was “laying the groundwork for BetMGM’s future”.
James Ross, SBC’s Multimedia Editor, was joined by Conor Porter on iGaming Daily, supported by Optimove, to delve deeper into the results and examine the mixed reaction to the report by BetMGM’s investors.
Despite reporting growth across its igaming and sports betting verticals, BetMGM did report an H1 EBITDA of minus $123m, however, the operator noted that EBITDA was “consistent” with its expectation of 2024 being an investment year.
Regarding the results, Conor said, “In my opinion, there are some strong results. It’s been a consistent emphasis from BetMGM since December last year when they mentioned that 2024 would be an investment year.
“Greenblatt said that the first half of this year has been very important in laying the groundwork for BetMGM’s future [and] 2024 is a year of investment focusing on improving customer experience and stepping up [the] level of investment in players. They said, as well, that [they have] exceeded goals for both acquisition and retention, which should lead to higher year-over-year revenue growth for the second half [of 2024].”
Although Greenblatt and BetMGM remain positive over the operator’s trajectory, Earnings+More reported that some of the firm’s investors have expressed disappointment with the results.
In December BetMGM initially said it was aiming for a positive adjusted EBITDA projection for 2026 of $500m, however, the company has now “changed verbiage” and stated that they are aiming for the same EBITDA in the “coming year”.
“You could still infer it means 2026, but some interpretations have gone a different way,” explained Connor.
“From [BetMGM’s] perspective, they’re still on their planned trajectory of positive EBITDA close to the $500m mark by 2026, but some have interpreted it as potentially being flexed out a little bit because of the “in the next couple of years remark”.”
After a short break, the duo turned their attention to New Zealand where the new government has announced plans to regulate online casinos, with the new regulatory system “to be in place from early 2026”.
New Zealand’s Minister of Internal Affairs, Brooke van Velden, stated on the government’s website that the new regulation has been “designed to minimise harm, support tax collection and provide consumer protections to New Zealanders”.
The new regulations will limit advertising and operators that gain a licence, will only be able to offer online casino games, not sports betting or lottery.
On the news, Conor said that he “wasn’t surprised” that the New Zealand government is trying to “limit the impact of offshore gambling and get some of that money back through tax”.
Sky City Entertainment Group was the first operator to respond to the news and Conor detailed its positive reaction to the proposed regulations.
He said: “They’ve shown their support for online casino regulation saying in a statement that the Sky City Entertainment Group remains supportive of the regulation of online casino gaming in New Zealand, with the emphasis on strong host responsibility and delivering community benefits in New Zealand.”
The group’s CEO, Jason Walbridge, added on LinkedIn that Sky City has “long supported regulating online play to minimise harm and protect kiwis”.
