BetMGM’s Market Share in Ontario’s iGaming Sector
The online betting and casino giant BetMGM has announced that it holds 22% of the market share in Ontario and 17% in North America, which is a better-than-expected achievement for the previous year.
It is more evidence of substantial growth in the Canadian online gambling landscape, which continues to provide the online gambling industry plenty of encouragement over the coming years.
The news was welcomed by the CEO of BetMGM, Adam Greenblatt, who said in a business update last month: "In the four short years since we launched BetMGM, we've established ourselves as one of the leaders in this fast-growing, highly competitive industry."
"We continue to be a market leader with a combined market share in the third quarter of 17% in online sports betting and iGaming across the U.S. and Ontario. This puts us firmly in the top tier of the industry, with all smaller competitors garnering low- to mid-single-digit shares. Our U.S.-only share is more than double that of the fourth-ranked operator. This is likely to be even more pronounced if we take Ontario into account, where we command 22% share across OSB and iGaming."
Mr Greenblatt added that BetMGM's performance was especially pleasing given the competitive nature of gaming in Ontario, where more than 70 individual businesses compete for a relatively small pool of players.
BetMGM Meets Important Financial Goals
The company is on track to meet the top end of its 2023 guidance, which lies between $1.8 billion and $2 billion, according to Mr Greenblatt.
They have also increased their EBITDA by well over $300 million, which means they can be self-funded from now on. That means the business can rely on something other than support from its parent company Entain, which also oversees other huge betting brands like Ladbrokes and Coral.
The signs were promising for a good year after Q1 results, where the net gaming revenue (NGR) was up 76% year-on-year to $476m.
Earlier in the year, Mr Greenblatt emphasised the path to future success with BetMGM lay in its quality of product, as the battleground for acquiring players becomes more challenging.
In an interview in mid-2023, he said, "The product is increasingly becoming the battleground."
"What we are finding is a combination of our brand, the MGM database and omnichannel sources and, of course, acquiring players in the open market, we can recruit at a really attractive CPA. But economics requires us to give players an excellent experience. Hence, they stick around. Ultimately "that means taking away all the friction points and making sure the service organization is as player-centric as possible but the majority of interaction is through product."
Results Cap A Positive Year For BetMGM
The strong figures come off the back of an award-winning 2023 for BetMGM, which saw them pick up several gongs, including Digital Operator of the Year by Global Gaming Awards, and both the Online Casino of the Year by American Gambling Awards, and Casino Operator of the Year by EGR North America for the second year in a row.
Part of the success has to do with some significant achievements within the calendar year, according to Mr Greenblatt, not least some exciting developments in the responsible gambling area of the business.
"We invested significant organizational resources in moving our Responsible Gambling agenda forward. In addition to our in-product tools and dedicated, pro-active Responsible Gambling Team, we partnered with 9 NFL teams to promote responsible gambling in stadiums during games."
Mr. Greenblatt drew particular attention to the company's new responsible gambling technology.
"We have started to use our proprietary technology algorithms more widely to monitor for the emergence of concerning player behaviour. We continue to build on our award-winning program with GameSense and proudly supported industry stakeholders, including the International Center for Responsible Gambling."
Why Results Show iGaming Rapidly Evolving In Canada
There is no doubting Ontario's iGaming industry is expanding at a breakneck rate, and almost all of that is to do with the legalization of online casinos. The fact that BetMGM’s market share of 22% in the province highlights just how competitive this industry is becoming in Canada. Other big players, including DraftKings, FanDuel and 888 Holdings, are also making their mark in Ontario.
It’s been an eye-bulging first year since Ontario legalized gambling - the suggestion is it’s only going to get bigger.
