• About Us / Contact
  • Responsible Gambling
This site contains commercial content
SportsHandle
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Kentucky
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Vermont
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
  • News
No Result
View All Result
SportsHandle
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Kentucky
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Vermont
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
  • News
No Result
View All Result
SportsHandle
No Result
View All Result

Entain CEO Bullish On U.S. Expansion Despite Intense Competition From Newcomers

Entain maintains strong presence in U.S. as BetMGM tightens grip on top three market ranking

Matt Rybaltowski by Matt Rybaltowski
June 15, 2022
in Industry
Courtesy of Entain

Courtesy of Entain

Share on FacebookShare on Twitter

Last week, BetMGM disclosed that it handled 70 million transactions in Ontario in May alone, continuing its stellar start in Canada.

With Ontario established as a key market for the venture, BetMGM has set its sights on becoming North America’s top online gaming operator in a crowded field. As of February, BetMGM ranked first in the U.S. in online sports betting and iGaming market share in its active jurisdictions. It also ranked second across all U.S. jurisdictions, the company announced last month, even though it is only live in 23 markets, including Ontario.

Launched in July 2018, shortly after the Supreme Court’s repeal of PASPA, BetMGM is a 50-50 joint venture between MGM Resorts and Entain, a major European gambling conglomerate. MGM gave the ventureΒ a recognizable brand, while Entain delivered one of the industry’s most trusted back-end platforms.

BetMGM 1Q22 net revenue was ~$271M, along with a loss of ~$184M, attributed largely to initial rollout in New York… if not mistaken the LTM tally at the JV is ~$959M in net revenue and ~$488M in losses.

More color on BetMGM to come next week via Investor Day on May 12. pic.twitter.com/kTmc9eB0pj

— Alfonso Straffon πŸ‡¨πŸ‡·πŸ‡ΊπŸ‡ΈπŸ‡²πŸ‡½ (@astraffon) May 3, 2022

Entain CEO Jette Nygaard-Andersen is pleased with BetMGM’s progress in the U.S., where the venture is near its targeted goals of 20-25% market share in active online sports betting and iGaming jurisdictions. Nygaard-Andersen was appointed CEO of the global gaming conglomerate last January after her predecessor Shay Segev took a leadership position with DAZN Group.

β€œI am very, very pleased with where we are today,” Nygaard-Andersen told Sports Handle on the final day of May. β€œThe team here is doing a magnificent job in really understanding the markets.”

Market consolidation appears inevitable

During an hourlong interview, Nygaard-Andersen, a former executive with Stockholm-based digital entertainment company Modern Times Group AB, addressed a litany of topical industry issues, including initiatives to combat problem gambling, sponsorship limitations in Europe, and market consolidation in the U.S.

Sign Up For The Sports Handle Newsletter!
I also want to receive information and offers about online sportsbooks (eg. odds boost, welcome offers)

While Penn National Gaming made a strategic move with the acquisition of theScore and DraftKings bolstered its iGaming offerings with the purchase of Golden Nugget Online Gaming, M&A activity since the PASPA decision has been fairly sparse. Among non-casino companies, ESPN has indicated that it could license its brand for sports betting, but the closely watched move doesn’t appear imminent. Other multi-billion dollar corporations — such as Facebook, Amazon, and Apple — have ramped up efforts to stream top professional sports, but have been reticent to take on risk as a standalone sportsbook.

BREAKING: Apple and Major League Soccer have agreed to a historic 10-year broadcasting deal.

The Apple TV app will become the new home of all MLS matches beginning 2023 without any local blackouts or restrictions. pic.twitter.com/NUBkvmVhML

— Front Office Sports (@FOS) June 14, 2022

One prominent company, though, is poised to disrupt the industry upon its sports betting debut. Unlike BetMGM’s top competitors, Fanatics has deep interests outside of gambling, with divisions in licensed team merchandise and sports collectibles. Last month, Fanatics took a major step in furthering its ambitions to launch a sportsbook when the company filed a trademark for its sports betting brand with the U.S. Patent and Trademark Office.

Fanatics has the scale and diversity to become a one-stop shop for in-game betting, NFTs, and jerseys inside a stadium. Eventually, Fanatics CEO Michael Rubin believes the company can become one of the largest sportsbooks in the nation.

Asked whether Fanatics’ entry into the U.S. sports betting market will be a game-changer for the industry, Nygaard-Andersen demurred. Instead, she took a broader view of the U.S. market without mentioning Fanatics by name. At present, the top five sportsbooks in the U.K. account for about 80% of that market’s revenue, she noted.

There are parallels in the U.S., where BetMGM, FanDuel, and DraftKings account for at least 70% of the nation’s overall market share, according to various estimates. The topic generated considerable debate during numerous first-quarter earnings calls last month, as rumors swirled that Fanatics would pursue a massive market access deal by acquiring a top sports betting company. Large-scale consolidation may squeeze out some of the mid-level operators, which currently maintain single-digit market share in the U.S.

“I think when you look at the broader recreational market, you will see quite some consolidation in the top,” said Nygaard-Andersen. “I think if you look years ahead, the struggle will probably be in the mid-market.”

In some respects, BetMGM has taken a prudent approach with its customer acquisition model across the U.S. For instance, the venture has spent judiciously in high-tax jurisdictions such as New York, where operators may face an uphill climb in attaining profitability.

Nygaard-Andersen credits BetMGM’s team for developing a model that quickly grasped U.S. player behavior. The platform, which runs on Entain’s Customer Relationship Management (CRM) system, has enabled BetMGM to develop a state-by-state strategy for areas such as customer acquisition, marketing, and promotional activity.

Other M&A activity

In terms of M&A activity, MGM Resorts signaled its intent to expand from an iGaming perspective last month, when it made a $607 million bid to acquire Swedish-based online gaming operator LeoVegas.

The deal, which is expected to close in the second half of 2022, was unanimously approved by LeoVegas’ board. Since BetMGM has exclusivity in the U.S. for the venture’s product sets, the LeoVegas deal will have little impact on the operator, Nygaard-Andersen indicated.

On Tuesday, Entain announced the acquisition of the Netherlands-based online sports betting and iGaming operator BetCity, a deal worth up to €850 million. Entain, which owns top European gambling brands such as bwin, Ladbrokes, and Coral, has made a pledge as a company to not operate in unregulated markets. The Netherlands launched a regulated online gaming market last October.

Entain, the gambling operator behind the Ladbrokes and Bwin brands, is acquiring BetEnt, the owner of BetCity, amid delays securing regulatory approval from the KSA, the Dutch gaming and gambling authorityhttps://t.co/GK1cZCuVzU

— BTG Advisory (@BTG_Advisory) June 15, 2022

“We are happy to be joining forces with a world-class group in Entain. Together, we will be well-placed to maintain a strong market position in the Dutch market for the coming years,” said Melvin Bostelaar, CEO of BetCity, in a statement. “Entain’s market-leading platform, technology, established brands, and global scale provide a fantastic opportunity to expand and enrich our customer offering.”

500th day as Entain CEO

Nygaard-Andersen recently celebrated her 500th day as Entain’s CEO. She holds the distinction of being one of the only female CEOs on the FTSE 1000, a list of the top public companies in the U.K., and has conversed several times with FanDuel CEO Amy Howe, another top female executive who replaced Matt King last year.

“I don’t wake up in the morning and think about myself as a female leader,” Nygaard-Andersen said. “I hope we’ll reach a point also in this industry where it’s not about gender, it’s just about great leaders.”

ShareTweetShare
Matt Rybaltowski

Matt Rybaltowski

Matt is a veteran writer with a specific focus on the emerging sports gambling market. During Matt's two decade career in journalism, he has written for the New York Times, Forbes, The Guardian, Reuters and CBSSports.com among others. In his spare time, Matt is an avid reader, a weekend tennis player and a frequent embarrassment to the sport of running. Contact Matt at [email protected]

Related Posts

roosters-fighting-arena-puerto-rico
Industry

Puerto Rico Digital Wagering Coming … Soon?

June 5, 2023
josh naylor
Industry

April Brings Newcomer Ohio Its Lowest Betting Activity Thus Far

May 31, 2023
Load More

Top Stories

colts logo

Source: ‘Pervasive’ Wagering From Colts Player Includes Bets On His Own Team

June 5, 2023
paspa ruling

From PASPA To Present: An Oral History Of The U.S. Sports Betting Gold Rush

May 11, 2023
inside-fanatics-sportsbook-fedex-field

Sources: Fanatics Enters Advanced Talks With PointsBet On Transformative U.S. Deal

May 12, 2023
new york times headquarters

The ‘Risky Wager’ Series From New York Times Was No Hit Piece β€” It’s Reality

May 31, 2023

State Sports Betting Guides

Ohio (U.S. state) flag waving against clear blue sky, close up, isolated with clipping path mask alpha channel transparency, perfect for film, news, composition

Ohio Sports Betting – All Online Sportsbooks, Bonus Offers, and News 2023

by Brian Pempus
May 16, 2023

Downtown Detroit at twilight (Shutterstock)

Michigan Sports Betting – Where To Play, Online Sportsbooks, And FAQ

by Brett Smiley
May 2, 2023

VA captial

Virginia Sports Betting – Where To Play, Online Sportsbooks And Bonus Offers

by Brett Smiley
April 24, 2023

nj flag

New Jersey Sports Betting — Where To Play, Online Sportsbooks, And FAQ

by Brett Smiley
March 22, 2023

pa online sportsbooks

Pennsylvania Sports Betting – Where To Play, Online Sportsbooks And Bonuses

by Brett Smiley
May 3, 2023

Canada Sports Betting Guides

Canada Sports Betting – Best Sportsbook Apps & Bonus Offers

British Columbia Sports Betting – Legal Update, Available Sportsbooks, and FAQ

Ontario Sports Betting – Legal Status And Where To Play

SportsHandle

  • Analysis
  • Casino
  • Features
  • Horse Racing
  • Industry
  • Legal
  • Legislation
  • Lottery
  • Opinion
  • Podcasts
  • Poker
  • Politics
  • Promotions
  • Regulation
  • Sports
  • Uncategorized

Better Collective

This website is owned and operated by Better Collective USA. Trademarks and copyrights referenced on this website are and shall remain the exclusive property of their respective owners and/or licensors. Please be sure to visit the operator’s website(s) to review their terms & conditions. We advise you to read these carefully as they contain important information. Copyright Β© 2023 USBets.com | Better Collective USA
21 Play Responsibly
Gamble Aware West Virginia
Gambling Problem? Call 1-800-Gambler.
GameSense

Search Sports Handle

No Result
View All Result
  • About Us / Contact
  • Responsible Gambling

No Result
View All Result
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Kentucky
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Vermont
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
  • News