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Life After PASPA – BetMGM Update

Life after PASPA

BetMGM’s high-flying progress and opportunity

Life after PASPA

BetMGM’s high-flying progress and opportunity

$37 billion

Total Addressable Market

23

Markets

$37 billion

Total Addressable Market

Four years of US regulation

Just over four years ago, the USA’s anti-gambling law known as PASPA (the Professional and Amateur Sports Protection Act) was repealed by the US Supreme Court. This marked a watershed moment not only for the sports wagering industry in the USA – the largest economy in the world, boasting a passion for sport – but for Entain’s global expansion.

 

BetMGM, Entain’s US-based joint venture with MGM Resorts, was created a matter of weeks after the repeal of PASPA, marking our entrance into the US market. With all states now free to vote on the legalization of iGaming and sports betting – online and land-based – momentum continues as more and more states choose to allow sports betting and, in some cases, iGaming as well. Today, players in 23 North American markets can access BetMGM’s state-of-the-art online sports wagering platform, providing a wide variety of betting options as well as access to unique experiences and benefits available through MGM Resorts.

In the span of almost four years since launch, BetMGM now reaches 41% of the adult population in the USA.
It has added 11 new markets, including Ontario, and grown net revenues fivefold in the past year alone. BetMGM is an established leader in sports betting and iGaming in the markets in which it operates, reaching its objective market share range of 20-25% on a rolling three month basis.


The market opportunity

There is still greater opportunity for BetMGM. As state legislation continues to progress, potentially including in California which will vote on our industry’s ballot initiative later this year, the country-wide market opportunity continues to grow.

 

Additionally, states like Illinois, Iowa and New York are also making moves to introduce iGaming. This regulatory outlook gives BetMGM the potential to reach a further 3% of the US adult population.

With further states contemplating regulation, we estimate that the total addressable market across North America over the long term is approximately $37 billion.

The Entain difference

None of this would be achievable without the strength of Entain’s products and our proprietary technology platform underpinning BetMGM. Supported by our 3,000 plus technologists, BetMGM is able to continuously improve the product and experience for customers as well as benefitting from Entain’s three in-house product development studios. This dynamism has led to significant improvements in customer satisfaction metrics, therefore, it’s no surprise that BetMGM was recently recognized as Casino Operator of the Year at the EGR North America Awards 2022.


What next?

BetMGM is a great example of the difference that Entain’s scale and platform can make in new markets. Our best-in-class technology has been a key component of BetMGM’s success, providing great customer experiences and turning the US growth opportunity into real revenues.

 

We have a great deal of optimism for BetMGM’S future. As new states enter the market, its omnichannel approach, underpinned by our technology, will allow us to maintain our expected long term US market share of 20-25%.

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