BetMGM Expects Full-Year Loss Amid Increased Marketing Spend

Entain’s US joint venture, BetMGM, has announced it anticipates a full-year loss as it significantly increases its marketing expenditures. The sports betting and gaming group, co-owned by Entain and MGM Resorts International, reported an underlying loss of $123 million (£96 million) for the first half of 2024. The company expects similar results for the latter half of the year, attributing the losses to heightened investments in its iGaming sector. Adam Greenblatt, CEO of BetMGM, emphasized the importance of the first half of 2024 in establishing a foundation for future growth. He stated that the company is focusing on enhancing customer experience and increasing investments in player engagement. Greenblatt expressed optimism about the strategy, noting that they have surpassed their acquisition and retention goals, which should lead to improved revenue growth in the second half of the year and into 2025. Despite the losses, BetMGM reported a 6% increase in net revenues, reaching $1 billion (£780 million) in the first half, with growth accelerating to 9% in the second quarter. The company remains confident in its goal to achieve $500 million (£390 million) in annual underlying earnings in the coming years. In response to these developments, shares in Entain fell by 3% on the London FTSE 100 Index. The company has faced a challenging year, with shares dropping over 50%. Recently, Entain appointed Gavin Isaacs as its new CEO, following the resignation of Jette Nygaard-Andersen amid shareholder dissatisfaction.