BetMGM CEO Adam Greenblatt has announced plans to take full advantage of the surge in sporting events in Las Vegas by 2024. The recent Formula One event in the city attracted 300,000 fans, leading to a threefold increase in bets placed with the operator. Greenblatt believes that Las Vegas offers more cost-effective opportunities for hiring players, with the value of these opportunities having tripled.
Bill Hornbuckle, CEO of MGM, pointed to the “golden triangle” and the construction of a new baseball stadium by the Oakland A’s as indicators of the city’s potential as a top destination for sporting events. He also expressed his belief that both the NBA and NHL should get involved in the city. BetMGM has set ambitious targets for the future, aiming to achieve $500 million in positive EBITDA by 2026 and secure a 25% market share in the United States. Greenblatt predicts the company’s revenue will fall between $1.80 billion and $2 billion in 2023, emphasizing the importance of reaching the $500 million EBITDA mark to cover fixed costs.
BetMGM’s CFO, Gary Deutsch, confirmed that the company is currently focused on player recruitment and retention strategies. The joint venture between Entain and MGM Resorts International has received significant investments but is confident of being self-funding by 2024, with a pledge to not seek further capital. According to Greenblatt, the company is in a strong financial position.
While Greenblatt is optimistic about BetMGM’s third-quarter results, Goldman Sachs has reported a downturn for the operator. Despite this, Entain has stated that the company achieved an 18% market share in the third quarter. Greenblatt remains positive about the future of BetMGM, aiming to capitalize on the growing sports events market in Las Vegas.