BetMGM Boosts Revenue with Smarter Sports Betting Strategy

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00:00Now let's get to some good news here for BetMGM, you know, certainly one of the companies that

00:04seems to be at least, you know, fighting to stay within that three, top three, top four sports

00:10betting operator range. And they get some good news here, which you could read about a legal

00:13sports report, but I don't want to ruin the story. So I'll let you tell us more.

00:17Yeah, BetMGM, like you point out, Craig, is definitely hanging on, hovering right behind

00:22the FanDuel's and DraftKings of the world, which are just at such a competitive advantage right

00:26now. You can't really get in that group, but they're right there with the Caesars and ESPN

00:31Bet is below them. So they're in a decent spot. They actually had a really great quarter this

00:36past quarter, and they're crediting what they're calling a smarter approach to sports betting

00:40and player quality, not just being, you know, lucky and being on the winning side of more

00:45bets. Of course, the past two quarters have been really bad for sports books, which just

00:49got hammered in the NFL playoffs. And then that continued into March badness, but it looks

00:53like Q2 is shaping up to be much better for them. BetMGM saw a 56% jump in sports betting

00:59revenue, and they did that while cutting marketing expenses. And their CEO kind of talked about

01:05that, saying that, you know, we're attracting more quality players and filtering out the

01:09ones that maybe aren't necessarily as valuable to us and perhaps diluting numbers a little

01:14bit. So they intentionally tried to cut out some of that active player base that is low

01:18value and maybe not cross-selling over to some other more premium, higher margin

01:23products, such as parlays, which actually jumped 5% as a percentage of all bets. You

01:29know, sports books really want you to bet those high margin bets. So that's one of the

01:33reasons that they saw progress there. And, you know, it helped them achieve $86 million

01:38in earnings before debt and other tax and other expenses we talk about, which is just a massive

01:43jump from 2024 when they had only $8 million. So they're projecting $150 million by the end

01:49of the year. Again, kind of signaling that they're in a strong position to round it out.

01:53And it'll be really interesting to see, you know, heading into NFL season with these things

01:57that have worked during the slower time in the sports betting calendar. Obviously, baseball

02:01is going on, but there's not a ton else right now. And especially activity-wise, the NFL and

02:07college football as well is just a huge time. So it'll be really interesting to see how they

02:12try to swing that momentum into the NFL season. It'll be interesting to see how DraftKings and

02:17FanDuel respond to one of their competitors making headwinds, whether that leads to more,

02:22you know, better promotions, better products for people. I think those are things that are all

02:26being talked about right now. So if you're a better, even if you don't use BetMGM, you should

02:30benefit from the fact that they're making headwinds and the competition in general is increasing

02:36right here. So yeah, really great quarter for BetMGM. And we should hear similar stories from other

02:41operators as they report in the coming weeks.