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BetMGM upgrades 2022 revenue outlook on expansion plans – Metro US

BetMGM upgrades 2022 revenue outlook on expansion plans

FILE PHOTO: General view inside a deserted Ladbrokes shop in
FILE PHOTO: General view inside a deserted Ladbrokes shop in Harpenden

(Reuters) -BetMGM upgraded its 2022 revenue outlook on Wednesday and said it still expects to turn a profit next year, as the U.S. sports-betting joint venture between MGM Resorts and Entain expands into more markets and launches new products.

The sports betting venture, which operates online and in MGM casinos in the United States, expects to deliver over $1.3 billion in net revenue from operations in 2022 and would reach positive core profit in 2023.

It previously estimated revenue of $1 billion this year.

BetMGM, an online sportsbook for betting on NFL American football and NBA basketball games, had been in the spotlight in the past year after part-owner MGM and rival DraftKings tried and failed to takeover Britain’s Entain.

Net revenue from the sports betting venture is expected to be about $850 million in 2021, while core loss is seen in the range of $420 million to $440 million.

Its owners are expected to invest $450 million in BetMGM this year, the same as in 2021, bringing the total investment to about $1.1 billion since Ladbrokes-owner Entain and New York-listed MGM launched it in 2018.

(Reporting by Yadarisa Shabong in Bengaluru; Editing by Krishna Chandra Eluri)

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