BetMGM Holds Projections Despite Rough NFL Betting Season

It appears BetMGM is not ready to back off their projections for the 2024 NFL season.

Entertain and MGM Resorts, which own the online sportsbooks, have announced they are sticking to their original $250 million EBITDA loss projections for 2024. The platform was expecting to take a significant loss due to making massive investments, but many thought they would be further altered after a rough NFL season for sportsbooks.

The news comes just days after FanDuel shared increased loss projections for 2024.

NFL Favorites at Historic Rate

While AGA projections for a record-breaking handle during the 2024 NFL season appear to have come true, it wasn’t good news for sportsbooks. Betting favorites won at the highest rate in over two decades. Those teams draw the most wagers, leading to bigger losses for operators when they win.

FanDuel significantly adjusted its EBITDA, prepping investors for unexpected losses heading into 2025. 

BetMGM Looking to Take Next Step

While far behind FanDuel and DraftKings, BetMGM has found itself atop the second tier of operators across the US. However, newcomers such as Fanatics have been pushing them in some US markets. That led Entain to focus on investing in BetMGM this year, hoping to elevate it to a level between the industry leaders and the rest of the pack.

The company’s stock price has felt the decision, remaining volatile until the end of the year. Given the platform's success and popularity, a financially disappointing 2024 will likely lead to a record-setting year 2025.

Will Risk for MGM and Entain Pay Off?

BetMGM is the only top sportsbook to forgo chasing profit goals in 2024. Instead, they took the year to tailor the platform further to the US and make it as user-friendly as possible. 

MGM and Entain's strategy is clear but comes with significant risk. The most considerable risk is that the investments and changes will not pay off. This would anger investors and lead them to look to their rivals for better opportunities.

Investors could also sour on BetMGM if they miss their loss projections. Deciding not to make a profit warning following FanDuel’s is something they will be watching closely. Success will paint leadership in a positive light, but failure could hurt the trust between investors, Entertain, and MGM.