(Alliance News) - Entain PLC announced on Wednesday that its co-owned sports betting and gaming operator BetMGM LLC performed ahead of revenue expectations in 2021.
BetMGM is jointly owned with Las Vegas-based hospitality and entertainment company MGM Resorts International. The companies signed the joint venture deal in 2018.
The Isle of Man, UK-based sports betting and gaming company said BetMGM's 2021 net revenue from operations is expected to be USD850 million. Entain said this was ahead of expectations and up significantly up from revenue of USD178 million in 2020.
Entain added that it expects BetMGM to deliver net revenue from operations of over USD1.3 billion in 2022.
In line with expectations, BetMGM's 2021 loss before interest, tax, depreciation and amortisation is expected within a range of USD420 million to USD440 million. In 2023, Entain expects BetMGM to reach positive earnings before interest, tax, depreciation and amortisation.
Entain said that BetMGM is achieving market share in line with its target of 20% to 25% in US sports betting and gaming.
Looking forward, Entain said BetMGM is expecting to launch online sportsbooks in Illinois and Louisiana in the first quarter. It also plans on expanding its bingo product and racing app into additional states.
Entain said it expects to invest around USD450 million along with MGM Resorts into BetMGM in 2022. This would bring the combined total investment from the companies to USD1.1 billion since BetMGM's launch.
Shares in Entain were up 1.3% at 1,728.50 pence on Wednesday in London.
By Heather Rydings; heatherrydings@alliancenews.com
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Entain (ENT)