BetMGM generated revenue of $178 million last year, achieved 17% of the U.S. market
GM Resorts International saw net revenues in the fourth quarter fall 53% year-over-year to $1.5 billion, the company said on Wednesday. Net loss was $448 million for the quarter, compared to the $2 billion net income in the fourth quarter of 2019.
Net revenues at Las Vegas Strip resorts dropped 66% to $480 million in Q4 compared with the prior year, and MGM China net revenues declined 58% to $305 million in that same period. Regional properties’ fall was softer, with a 34% decline to $595 million. Therefore, 40 percent of the company’s net revenues from the quarter came from its regional operations, while Las Vegas accounted for 32%. Adjusted Property EBITDAR improved over the third quarter.
MGM’s annual net loss in 2020 was $1 billion, compared with a net income of $2 billion in 2019. The company saw a $1.5 billion gain by selling the land under MGM Grand and Mandalay Bay in January 2020.
MGM said Wednesday that it remains optimistic on the Strip’s future, though CEO and President Bill Hornbuckle believes a full recovery may not come until 2022. Bookings are on the rise, and the company said it plans to keep all of its properties — including Mandalay Bay, The Mirage, and Park MGM — open throughout the week, starting next month.
The company’s US joint-venture with Entain, BetMGM, generated revenue of $178 million last year and the amount should more than double in 2021, MGM said, adding that it had 17% the U.S. market, which it expects to climb to $25 billion by 2025. “We expect to be in 20 markets by the end of the year, and are very pleased with the January launches in Iowa, Michigan, and Virginia,” Hornbuckle said. Those 20 markets would open up access to about 40 percent of the total U.S. population.
BetMGM said it has a No. 1 position in sports betting in Tennessee, where it holds more than one-third of the market. In Michigan, it has signed up 138,000 customers since launching last month.
“In 2021, we and our partner Entain expect new revenue associated with BetMGM to grow well over 100 percent,” Hornbuckle said. “We remain aligned on investing aggressively to fund the growth of this business.”