00:00 (upbeat music)
00:02 - Segway into our next topic,
00:04 because BetMGM last football season,
00:07 Matthew did a ton of spending
00:09 with all of the ads that we saw.
00:11 Is it finally starting to pay off for them?
00:13 - Yeah, it finally is.
00:16 We don't have an exact profitability number on BetMGM.
00:19 Remember, BetMGM is owned by two different companies.
00:22 50% owned by MGM Resorts here in the US,
00:25 50% owned by a technology company in the UK
00:29 called Entain.
00:30 So we didn't get an exact look at just how profitable,
00:32 but we know that they are profitable.
00:35 But it was interesting, MGM CEO, Bill Hornbuckle,
00:39 said that he's still not happy with where the app is.
00:42 And he thinks that Entain going out
00:46 and buying this company called Angstrom should help them.
00:49 Now, Angstrom is basically a trading services company.
00:54 They'll price things quickly.
00:56 It's really gonna help with in-play,
00:58 which again, as we've talked about,
01:00 the in-play stuff, high margin.
01:02 So you're gonna start to see more in-play for BetMGM.
01:06 You're gonna start to see, again,
01:08 that Parley mix getting bigger.
01:10 And one other thing that BetMGM's really happy about,
01:13 they just went live in 14 of their,
01:17 I think they have 26 states live right now.
01:19 In 14 states, they went live with a single wallet.
01:22 That means you don't need to have a BetMGM New York
01:26 and a BetMGM Virginia and a BetMGM Tennessee app.
01:30 You have one app.
01:32 So when you're bouncing between different states,
01:34 or if you're frequently in Las Vegas,
01:37 you don't have to switch to a different BetMGM app
01:40 when you're coming from the other states.
01:43 And that's big, right?
01:44 I mean, if you're forced to go and create an account
01:47 and download another app, you're gonna say,
01:50 screw it, I'll go with whoever else
01:51 has the single wallet instead.
01:53 So BetMGM getting there is great
01:56 from a technological standpoint.
01:58 They still add about 30,000 customers a month to BetMGM,
02:02 just from customers that have some sort of relationship
02:05 with MGM.
02:06 So we're still very much in a growth period for BetMGM.
02:10 Remember, they got started a little later
02:12 than the DraftKings and the FanDuels did.
02:14 And also, BetMGM has more of a focus on iGaming.
02:17 And now their share has been slipping a little bit,
02:22 but I think you're gonna start to see
02:25 BetMGM come back with more game.
02:28 They know that the competition is coming for them now,
02:31 since they are the leader of iGaming share.
02:34 They know that people are targeting them.
02:36 They know that now that everything's turning profitable,
02:38 casino is really the place to get those profits.
02:41 And so BetMGM has to play a little bit of defense.
02:44 But Hornbuckle sounded like he expected that could happen.
02:48 So BetMGM, again, they expect a profitable second half,
02:53 don't necessarily expect a profitable third quarter,
02:57 because they're gonna have to be out there competing
02:59 with the DraftKings and the FanDuels
03:01 to get more of those customers.
03:04 But to me, it seemed like a really solid report.
03:07 It seems like BetMGM, if they can figure out
03:10 why their share of iGaming and sports betting
03:13 is slipping a little bit
03:14 and giving back to FanDuel and DraftKings,
03:18 then to me, I think they're definitely
03:22 in that three, four spot with Caesars as well,
03:25 right behind DraftKings and FanDuel.
03:27 (upbeat music)
03:29 (bells chiming)
