Digital strategy to take center stage for MGM Resorts CEO by 2025
Going Big with BetMGM: MGM Resorts' Bet on a Digital Future
Buckle up, folks! MGM Resorts International is revving up its engines for an exciting journey into the realm of digital casinos and online sports betting. According to CEO Bill Hornbuckle, the company's primary focus in 2025 is amplifying its digital presence, and it's not kidding around.
MGM Resorts is eyeing states that might soon join the gamut of iGaming, followed closely by its Las Vegas properties and prospects in key international markets like New York, Brazil, and Japan. At a recent gathering in Las Vegas, Hornbuckle and CFO Jonathan Halkyard dropped some juicy details about the company's ambitions.
"You can expect BetMGM to chug along at about $2.5 billion give or take, while our Internet Interactive group will hit around a half-billion," Hornbuckle shared. He added that Brazil could be on the horizon for this digital expansion. So, what's the plan for this online gambling behemoth?
Well, with its BetMGM joint venture, MGM Resorts is laying down its chips in the US market, which saw a 27% surge in iGaming net revenue in Q1 2025, driven by cross-selling and retention improvements. And in Brazil, the company is aiming high, targeting over 10% market share in a $7 billion total addressable market.
But MGM Resorts isn't stopping there. It's got its eyes on the European gaming market, aiming for 1-5% market penetration, though its iGaming plans for individual European countries remain under wraps.
When it comes to product and operational strategies, MGM Resorts is beefing up its tech game with enhanced parlay offerings and pricing tools that have increased parlay bet mix by 4.8 percentage points and bets per active user by 28% YoY. The company is also focusing on premium mass players and retention strategies, driving growth in handle per active user and active player count.
BetMGM expects to achieve contribution positivity in online sports betting this year and aims for $500 million EBITDA run-rate in the coming years. The company reaffirmed a net revenue of $2.4-2.5 billion for FY 2025, but its international digital operations, including Brazil, remain loss-making, indicating reinvestment for long-term growth.
In conclusion, MGM Resorts International is betting big on the digital future with its BetMGM joint venture, balancing domestic iGaming dominance with targeted international expansions in high-potential markets. Finally, folks, get ready to bet on MGM Resorts—it's game on!
- MGM Resorts' CEO Bill Hornbuckle envisions BetMGM, the digital casinos and online sports betting arm of MGM Resorts International, generating around $2.5 billion in revenue by 2025.
- The company's Internet Interactive group is expected to reach approximately a half-billion in revenue by the same year.
- In addition to expanding in the US market, MGM Resorts has its sights set on international markets such as Brazil, New York, Japan, and potential European countries.
- To drive growth, MGM Resorts is implementing technology enhancements like improved parlay offerings and pricing tools, focusing on premium mass players, and developing retention strategies.
- BetMGM aims to achieve contribution positivity in online sports betting this year, target a $500 million EBITDA run-rate in the coming years, and continue investments in international operations for long-term growth.
