BetMGM has raised its goals for the North American sports betting and iGaming market. The joint venture between MGM Resorts and Entain is now targeting a long-term market share of 20-25%, which it estimates would be worth $6.4 to $8 billion in annual revenue.
It’s rare for gambling operators to be that specific about long-term market share expectations. The number, previously 15-20%, was mentioned Thursday as part of Entain’s investor day presentation. The company said that North America is a $6 billion market right now, and will grow to roughly $32 billion over the long term.
BetMGM currently has about 22% of the combined market, according to Entain CEO Jette Nygaard-Andersen. It is the largest in iGaming, she said, and lower down in sports betting, which she attributed to a late start in key states like New Jersey and Pennsylvania.
“Right now we are in 12 states, and depending on regulations and how the states launch, we expect to be in 20 states by Q2 next year,” she said in an interview. “At that time we will reach about 30-33% of the U.S. audience, and that’s next year, so it’s still a long way until we reach maturity here.”
Entain, whose brands include Party Poker, Ladbrokes and Coral, declared interim 2021 financial results on Thursday. It reported net gaming revenue of $2.48 billion, with double-digit online growth for the 22nd consecutive quarter. (BetMGM’s net gaming revenue in the first half of the year was $357 million). Entain shares were largely unchanged in London trading.
One opportunity that Nygaard-Andersen stressed: video gaming. Entain has agreed to acquire esports betting platform Unikrn, with plans to build out a book for betting on professional matches, and a skill-based wagering platform for amateur players. Though she declined to comment on the terms of that transaction, Nygaard-Andersen said Entain would spend about $69 million (£50 million) to stand up its esports strategy, including the Unikrn deal.
“To put it simply, esports is the sport of millennials,” she said. “There are 450 million people out there that are fans of esports. So we’ve been looking at this space for a while.”
Earlier this year Entain rejected an acquisition offer from MGM, which proposed 0.6 MGMRI shares for each Entain share, or roughly $11 billion. Nygaard-Andersen declined to comment on the status of any future talks.
“You’ll have to ask MGM,” she said. “We are a digital-first, fast-growing global business, and with the opportunities that we see in the market, that is really what I’m focusing on.”