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SPORTS BETTING
HOW ADAM GREENBLATT IS SHARPENING BETMGM ’ S COMPETITIVE EDGE
Adam Greenblatt set BetMGM on a path to profitability , with the business self-sustaining in the second half of 2023 . But as new competitors emerge , how will he make sure the operator stays ahead in the US sports betting market ? By Robin Harrison
L ast July ’ s update on BetMGM ’ s first half performance in 2023 confirmed the operator was on the path to profitability outlined by CEO Adam Greenblatt in June 2023 .
The business will be self-sustaining in the second half of the year , he claimed . There would be no additional equity investment from joint venture partners MGM Resorts and Entain , beyond the $ 150m committed for 2023 .
Greenblatt believes that BetMGM could operate as a separate business and stand on its own two feet if necessary .
“ It could be a permanent state , absolutely ,” he says of BetMGM as a self-sustaining entity . “[ But ] I think whether or not that is indeed a permanent state depends on how we want to ramp up and how quickly we want to do it .”
NEW COMPETITORS
Following last December ’ s business update , we know MGM and Entain will ramp up investment once again in 2024 . This means , after a profitable 2023 BetMGM has pushed back its target for an EBITDA-positive year to 2025 .
This is timely . Consolidation has claimed a number of smaller brands , among them WynnBet , PointsBet US , Fubo Sports and MaximBet over the past two years .
But new competitors are coming . Fanatics can compete in every key sports betting state thanks to its PointsBet US acquisition . Penn Entertainment is about to make a renewed push for a podium position with the might of ESPN behind it . Other brands like Bet365 , Hard Rock Digital and Bally ’ s remain in the mix .
There ’ s even flux in the established order . Recent data from Eilers & Krejcik shows DraftKings leapfrogging FanDuel into pole position in the US sports betting market .
“ The new entrants are stronger than those that are leaving ,” Greenblatt says . “ And I ’ m the first to say complacency is the death of a leader ,
40 • ISSUE 135 • ICE LONDON 2024