Worldwide casino giant MGM Resorts International (MGM +1.78%) fired off a press release today ahead of its investor day presentation providing guidance about its expectations for its BetMGM online gambling and sports betting platform. BetMGM, a joint venture between MGM Resorts and British company Entain (ENT +1.93%), has been pursuing an aggressive partnership strategy while establishing a foothold in as many states as it can.
MGM's press release foresees BetMGM surpassing even high-performing fantasy-sports and sportsbook company DraftKings. MGM says BetMGM already has a 23% market share in "iGaming," which is a separate category from sports betting, while noting its subsidiary "is on course to take the number two spot in U.S. sports betting and iGaming overall."
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BetMGM highlights its expectation of winning between 20% and 25% market share in the American sports betting and online gambling market, a sector it predicts will grow to $32 billion long term.
This growth won't come cheaply, with the press release noting MGM Resorts and Entain expect to invest a total of $660 million in the BetMGM platform over 2020 and 2021. But the two companies are counting on an even bigger return, expecting to rake in $1 billion in annual net revenue from the joint venture starting in 2022. CEO Adam Greenblatt of BetMGM says he is counting on the "unique partnership of MGM Resorts' leading brand and loyal customer base and Entain's proprietary technology platform."
BetMGM already achieved its projected second place in the State of Michigan during the NCAA men's college basketball tournament, winning 26% market share and relegating DraftKings to third place with a 21% share. Flutter Entertainment's FanDuel remained solidly in first place with 30%.
