Greenblatt: BetMGM will unlock Las Vegas in 2024.

 According to the CEO of BetMGM, who was speaking at Morgan Stanley's Global Consumer and Retail Conference, 2024 will be the year that America's gaming capital is unlocked.
 Red Rock agrees to sell Palms Casino CEO Adam Greenblatt claims that MGM will "unlock" Las Vegas in 2024.

 Greenblatt stated that BetMGM will try to profit on the surge of sporting events in Las Vegas during his remarks at the Morgan Stanley Global Consumer and Retail Conference on Wednesday, December 6.

 The key will be sports and a Las Vegas licence.
 Attracting 300,000 spectators, the latest Formula One event in the city set a new record for BetMGM.  Compared to previous Formula One races, the operator placed three times as many bets.

 Greenblatt declared, "[20]24 is the year we unlock Las Vegas."  This is significant since it costs 27% more to recruit a player in Vegas than it does to buy them on the open market.  Additionally, they are worth almost 130% more.

 "Vegas has a significant impact on both player acquisition and retention.  Most of the guys we sign in Vegas don't actually reside there.

 For a variety of intricate regulatory reasons, several of our competitors are, to be honest, not represented in Vegas, where BetMGM is the preferred option for sports betting.  They bring BetMGM home with them in terms of player acquisition, retention, and reactivation.

 "Bill Hornbuckle, the CEO of MGM, discussed the golden triangle.  The Golden Triangle of sports—the [Oakland] A's are constructing a new baseball stadium, the [Las Vegas] Raiders play at the Allegiant [Stadium], and the T-Mobile [Arena]—are, quite simply, right outside MGM properties.

 The idea of travelling to Vegas to watch your team play is always thrilling and alluring.  I have no doubt that in due time, we will have an NBA club, the NHL, and baseball.

 "Vegas will have representation from every professional sport, and it's growing stronger and stronger."  It's fantastic for BetMGM.

 Performance of BetMGM
 BetMGM recently declared that it aims to achieve a 25% market share in the US and anticipates generating $500.0 million (£396.1m/€462.2m) in positive EBITDA by 2026.

 After revealing that it intends to be at the higher end of its 2023 guidance, BetMGM announced the 2026 aim.  According to Greenblatt, revenue for the current fiscal year should range from $1.80 billion to $2.00 billion.

 Greenblatt is certain that BetMGM will reap the benefits of its investment in 2024, which is an investment year, starting in 2026.

 Greenblatt said, "[20]23 was the year we delivered on our commitments."  It was a decision to have EBITDA positive in the second half.

 "There is tremendous momentum hidden inside that figure if we reach $500 million in EBITDA on a tough investment profile.  The worth of every player we acquired in that transaction increases the next year.

 "This is this business model's beauty."  Your fixed expenses are covered now that you have $500 million in EBITDA.  This market is winner-take-most.  To overcome the expenses and marketing in this field, you must be large.

 "We put our gas down on getting new players," said Gary Deutsch, CFO of BetMGM.  We're preparing for the upcoming year and the one after that.

 "The foundation of the business is the accumulation of players and cohorts that we bring in every month.  We're figuring out who will stay and be a long-term player.

 We examine player metrics in relation to acquisition cost, value, and retention.  It goes without saying that the more we win and the more we keep, the quicker we arrive.

 "We're thrilled about what Adam has been doing and we think we can get the customers."  Next year, the true advantages of scale will become apparent.

 BetMGM 2024: An investment year
 MGM Resorts International and Entain have partnered to create BetMGM.  The operator has made significant investments thus far and anticipates becoming self-sufficient starting in 2024.

 "Our goal is to maximise value for shareholders," said Greenblatt.  “We understand how to acquire players, how to nurture players, how to retain players and understand the value of our cohorts.

 “We’re investing for growth.  We’ve also made a commitment not to take more capital, unless something new that we don’t see today comes up.

 “We’re not going to take more capital from our shareholders.  We’re going to make the absolute most of the resources that we have.

 “Having two billion dollars of revenue to reinvest in the business, I think gives us the ability to separate from the trailing pack.”

 Stagnation a problem
 While Greenblatt was optimistic over BetMGM’s Q3 results, Goldman Sachs highlighted the stagnation the operator is currently experiencing.

 In its Q3 update, Entain revealed BetMGM held an 18% market share in the US.  That is level with Q2, and only marginally ahead of the 17% recorded in Q1.

 Despite the sluggish progress, Greenblatt remains upbeat over the operator’s capabilities to deal with any issues, citing the potential opening of numerous US states as a reason to be assured.

 “We have North Carolina coming,” Greenblatt said.  “There’s positive news about Georgia, Minnesota, Missouri.  We think there will be more addressable markets to offset potential headwinds.”