BetMGM, a joint venture between Entain and MGM Resorts, has announced a groundbreaking partnership with X, the popular social media platform. This unique collaboration will integrate BetMGM’s odds and branding onto the platform, allowing users to access and bet on professional American football. In the coming weeks, the availability of odds will expand to include major professional and college sports.
Adam Greenblatt, CEO of BetMGM, expressed excitement about the partnership, stating that X is a central hub for sports discussions around the clock. Being directly accessible on this platform presents an unprecedented opportunity to connect with a passionate and engaged audience. Linda Yaccarino, CEO of X, also emphasized the significance of this alliance, stating that it will bring sports fans even closer to the action, allowing them to root for their favorite teams and now place bets as well.
The timing of this partnership is especially noteworthy as it coincides with the Super Bowl, set to take place at the Allegiant Stadium in Las Vegas. This highly anticipated event is expected to generate record-breaking betting numbers, with the American Gaming Association (AGA) predicting a staggering $23.1 billion in wagers from Americans. This represents a significant increase from the previous year, and a record-breaking 67.8 million people are projected to place bets.
BetMGM eagerly anticipates where these wagers will take place, as 28.7 million bettors, or 11% of the total, are expected to use licensed online sportsbooks. With X serving as a prominent social media platform with over 500 million users, this partnership offers BetMGM an effective acquisition model to expand its market share. Through X, BetMGM’s app and website are linked directly, allowing for deeper integration and potentially greater opportunities for the partnership.
The deal between X and BetMGM can be likened to Penn National Gaming’s $1.5 billion partnership with ESPN. While ESPN Bet capitalizes on sports media, BetMGM taps into the vast social media influence of X. It remains to be seen if BetMGM can secure exclusive advertising rights on X, a matter that will likely hinge on financial considerations.
Intriguingly, X may enable users to place bets on BetMGM via its app, further driving the partnership’s potential. If BetMGM can fully leverage the social aspect of X, this collaboration has the potential to revolutionize sports betting.
In a separate development, BetMGM announced that it has achieved its upper-end revenue target for 2023. The company reported nearly $2 billion in revenue for the 12-month period ending December 31, 2023. Despite posting a negative EBITDA of $67 million for 2023, BetMGM remains optimistic about reaching a positive EBITDA of $500 million by 2026.
The impressive revenue growth can be attributed to BetMGM’s expansion in North America. The operator is now active in 28 markets across the region, with recent launches in states like Ohio, Massachusetts, and Kentucky, along with an online foray into Puerto Rico. Currently, BetMGM holds a 14% sports betting and iGaming market share in the US and a 22% market share in Ontario, Canada, which it aims to increase further with the X partnership.
