On Tuesday. MGM Resorts International CEO Johnathan Halkyard spoke at a webinar. He discussed how BetMGM plans to use the rest of 2024 to focus on “tech reinvestment and player acquisition.” For the first time in 2023, BetMGM posted a profitable quarter for the first time in company history.
BetMGM is set to use new technologies and a revamped customer acquisition approach. These advancements and investments could help BetMGM reach profitability as early as 2025. Johnathan Halkyard believes the company has made solid progress so far in 2024 and they plan to do more in the future.
What new technologies can BetMGM offer?
MGM Resorts International CEO Johnathan Halkyard spoke about the company’s key growth driver at the Deutsche Bank-hosted webinar. That would be their new single sports betting wallet and acquisition of a new sports betting technology provider. In August 2024, BetMGM introduced a single wallet in all 22 states with a BetMGM mobile sportsbook. Instead of logging out when a player enters a new jurisdiction, customers can now access their funds in states any state where BetMGM is available.
Johnathan Halkyard noted that the single sports betting wallet is important in Nevada. It continues to be one of the highest-grossing sports betting states. BetMGM having a single wallet is a massive boost for growth in Las Vegas. The company’s biggest competitor in Nevada is Caesars Sportsbook. This single wallet gives BetMGM a leg up on its competitors who don’t have cross-state functionality.
Another reason Nevada is important to BetMGM’s success is the hold they have in this particular market. Nevada is the only state where BetMGM offers statewide mobile wagering without having to compete against FanDuel and DraftKings.
Why has sports betting expansion slowed down in 2024?
The Supreme Court struck down the federal wagering ban in 2018 and several states have opened legalized sports betting markets. While 38 states including Washington D.C. and Puerto Rico have some form of legal sports betting, several others have run into tough luck. Compared to just a few years ago, sports betting expansion in the U.S. has become stagnant. In 2024, no state has legalized a new sports betting market.
Additionally, DraftKings and FanDuel are industry leaders in the United States. More than a dozen sportsbooks have had to close down their operations. That’s because nine U.S. operators account for more than 99% of the nationwide handle. If a sportsbook is not one of those nine operators, there chances of success are extremely slim. The 99% of that handle is widely dominated by DraftKings and FanDuel. BetMGM typically ranks third behind the two sports betting giants in the U.S.
