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Jan 26 (Reuters) – U.S. sports betting platform BetMGM expects to be profitable in the second half of 2023 after the joint venture between MGM Resorts and Entain topped annual revenue forecasts, driven by strong margins at the gaming business. .
Britain’s Entain, which owns the Ladbrokes and Coral betting shops and the bwin and partypoker online brands, said on Thursday BetMGM’s annual revenue was $1.44 billion, above its forecast of $1.3 billion.
The online sports betting industry, which has bounced back as sporting events return after easing pandemic-related restrictions, is now grappling with inflation-constrained consumer spending.
BetMGM reported a core loss of about $440 million in 2022, in line with its expectations, but its online sports net revenue margin doubled year-over-year in the fourth quarter.
The gaming company is on track to generate between $1.8 billion and $2 billion in revenue in fiscal 2023, Entain said, adding that the joint owners expect to invest an additional $150 million in BetMGM this year.
Shares in London-listed Entain rose more than 2 percent in afternoon trading, while MGM shares rose 1.3 percent in premarket trading. (Reporting by Radhika Anilkumar in Bengaluru; Editing by Sherry Jacob-Phillips)
