BetMGM's Strategy and Market Share in Sports Betting

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00:00All right, so that coveted third place ranking, so to speak, in the sports betting universe.

00:09We know FanDuel and DraftKings have alternated one, two for a long time.

00:13We know FanDuel has more or less captured more of that share over the last year or so.

00:20Three seemingly up for grabs.

00:21ESPN bet thinks that they're going to have it.

00:23BetMGM has, you know, danced around three, four.

00:26They had an earnings report, Matt.

00:28I know you were on the call.

00:29So what did you learn?

00:30Yeah, you know, BetMGM is really happy with the way things are going now, Craig.

00:35If you remember, the story for BetMGM this year has kind of been a down one.

00:40They didn't expect to still be investing so much in the company.

00:43And they had to make those investments because when you think about BetMGM, remember that

00:47it's owned by MGM Resorts in the U.S. and a company called Entain in the U.K.

00:52And Entain came in with their European and British betting background.

00:58And they thought that would translate to the U.S. and it just didn't.

01:01And they let it go a little too long, essentially, is what their interim CEO said at one point

01:07this year.

01:08Now they have a new CEO, and Gavin Isaacs, the guy is an industry veteran.

01:12And if you're looking for somebody to right your ship, he is certainly one of the pilots

01:17you want on it.

01:19And so basically what BetMGM is seeing is it's seeing stability in the U.S.

01:25They don't see that market share slipping anymore.

01:28They claim 22% of iGaming market share for the third quarter and 8% of sports betting

01:33market share for the third quarter, giving them a 15% blended market share.

01:38And they're happy with that.

01:39Basically this year they want to hit their numbers and then they'll start growing next

01:44year.

01:45And if you remember, Craig, back in August, Nevada single wallet was added to BetMGM,

01:51meaning that when you go to Nevada, if you had an account from Pennsylvania or another

01:56state, it will already work in Nevada.

01:59And the flip side of that is if you go to Nevada and you sign up a new account, if you

02:04go back to a jurisdiction that has BetMGM in it, you can continue to use that same account,

02:09that app, really trying to just create less friction for people.

02:14And they couldn't give specifics.

02:16It hasn't been live that long, but they said, look, we're excited by the opportunity.

02:20We'll put it that way.

02:23As for profitability, you know, they still don't know where they're exactly going to be on that

02:28next year.

02:29One of the trends that we've been talking about, Craig, is that it has been cheaper recently for

02:34these companies to acquire new customers, whether it be on the iGaming side or the sports

02:39betting side.

02:41BetMGM plans to spend $750 million all told on customer acquisition this year.

02:46And so really, it just comes down to, you know, will the math change and will it be too

02:52expensive next year?

02:54And so some of that $750 million won't be spent and dropped to the bottom line, or are the

03:00metrics going to stay great?

03:01And should BetMGM really be looking at maybe bumping that up to an 850 or more?

03:06We know that FanDuel has been very aggressive in customer acquisition, and they've said that

03:10there's no time, there's no reason to stop.

03:13It's still hitting all their math.

03:16And BetMGM has improved its product, Craig.

03:20We know that these products are getting closer and closer to what the DraftKings and

03:23FanDuels are, and BetMGM now has more markets for all of the major sports that's leading to a

03:31higher hold, it's leading to more legs per parlay, it's doing all those things that kind of

03:36bump your bottom line up.

03:38So all told from BetMGM over at Entain, everybody is happy with what they're seeing.

03:45Everybody is happy with the way that BetMGM is turning the corner.

03:50And now that they see the bleeding stop, so to say, they're ready to see where they can take

03:55that momentum and how far it can go.

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