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MGM, one of the biggest players in the world's gambling industry, has lost $71 million courtesy of its US-based sports betting app BetMGM between the months of April and June of this year.
$MGM lost $71 million from BetMGM between April and June of this year. It made nearly $1.2 billion from slot machines during that same time.
— Ryan Butler (@ButlerBets) August 3, 2022
By contrast, DraftKings beat both its consensus EPS and revenue estimates for Q2 though it still reported ($407.6 million) in adjusted EBITDA losses through the first six months of 2022.
But the real contrast comes between MGM's mainstay gaming properties and its haphazard leap into the U.S. mobile sports betting arena that has already resulted in welcome bonus reductions in a number of states.
Ryan Butler of iGamingNext observed:
At just its Las Vegas properties last quarter, $MGM increased its table game win from $173m to $330m, and its slot win from $351m to $498 year-over-year, thanks to the additions of the high-end Cosmo, Vdara and Aria resort casinos.
MGM did manage to decrease its BetMGM losses from $71 million in Q2 2022 compared to $92 million in Q2 2021 but the company expects losses during the rest of the year to further "moderate" as sportsbooks' promotional spend "rightsizes".
June numbers across the sector were some of the lowest sports betting companies have observed since launching in the U.S. back in 2018.
Affiliate ad partners have especially been feeling the pinch from BetMGM's reduced offerings.
Michael Murphy, a Wisconsin-based affiliate marketer, says he now has to go through 100 plus pages of content to remove said promos...just weeks before the start of the new football season no less. For him, at least, this will result in less exposure for BetMGM.
Update: I did read the email wrong. BetMGM is halting ALL sportsbook offers in PA and NY (read = high tax rates) and ending "Bet and Get" offers in all other states, leaving the standard offer in place.
— MichaelJMurphy (@MichaelJMurphy) August 1, 2022
Effective immediately, so excuse me while I start updating 100+ pages
The BetMGM results demonstrate how many sportsbook sites in the U.S. market are being suffocated by the Big 3: DraftKings, FanDuel and Caesars.
- Aaron Goldstein, Gambling911.com
