BetMGM’s CEO describes his strategy to hold onto its No. 3 spot in US sports betting as Fanatics and ESPN Bet circle

• Behind FanDuel and DraftKings, BetMGM is the third most popular online gambling brand in the United States.
• New competitors such as Fanatics and ESPN Bet are vying for its coveted market-share position.
• Its CEO outlined the three most significant challenges the company is facing, as well as his strategy for staying on top.

BetMGM CEO Adam Greenblatt is well aware that Fanatics and ESPN Bet are attempting to eat his lunch.

According to an October report from Eilers & Krejcik Gaming, an industry research firm that tracks market share by gross gaming revenue, his company has the third largest online gambling brand in the US, trailing FanDuel and DraftKings.

BetMGM has held that position for much of the last two years, combining the brand and database of MGM Resorts in the United States with the technology and product expertise of European parent Entain.

However, it has lost some ground, with a market share of around 15% in the third quarter, down from around 20% a year ago. And a new crop of competitors is vying for its position, including Fanatics and Penn Entertainment’s ESPN Bet.

“Everyone’s kind of fighting for that third and fourth spot,” Macquarie gambling analyst Chad Beynon said to Business Insider in September.

In an October interview with BI, Greenblatt detailed a series of recent moves, including an acquisition and product enhancements, that could help the company maintain its lead and make meaningful strides in 2024 despite stiff competition. He also discussed BetMGM’s biggest challenges, ranging from its ownership structure to the shaky economic environment, as well as the outlook for online-casino regulation in the coming year.

“We’ve got some pretty well-organized and well-financed, branded players coming to the market,” he went on to say. “Do I believe they will have an impact?… The leaders’ total entertainment proposition is now quite formidable. Time will tell, but we’re not going down without a fight.”

How BetMGM is improving the product experience to compete in sports betting and online casino

Heading into 2024, BetMGM is focused on making “meaningful strides” in sports betting, maintaining its leadership position in online-casino gaming in North America, and cross-selling those products in a “more sophisticated way,” Greenblatt said.

On the sports-betting front, BetMGM has focused on improving its sportsbook’s speed and performance to address critiques that the app wasn’t fast enough. Greenblatt said BetMGM worked with Entain to put out three speed-focused releases in the past 90 or so days that have had a “seismic impact” on performance.

“I think we are at least as good as best in class now,” he said. “So we’ve really actively taken away one of the known pain points of our digital sports experience and I expect the benefits of that to be seen in 2024.”

He’s also banking on Entain’s recent acquisition of sports pricing and analytics firm Angstrom to improve the sports-betting product, particularly its same-game-parlay experience. He said Angstrom is unique because it’s built its pricing models from the ground up around player-level data.

“That enables us to put things together in a way that others don’t have the ability to price,” he said. “That enables us to offer a range of betting opportunities that is, in theory, unbounded.”

BetMGM is working on improving its online casino app, which EKG ranked in the second quarter as the second best performing in the US after Tipico.

He plans to leverage the MGM Resorts brand to create experiences that bring together physical retail and digital. For example, users in the BetMGM app can play live on the same roulette table that’s at Borgata’s casino in Atlantic City, and the company plans to launch similar experiences for slots.

“That’s both fun and also a differentiator for us and uses the MGM assets for the benefit of both parties,” Greenblatt said.

He also sees more opportunities to cross-sell casino games to sports bettors and vice versa, in some cases, making use of the company’s partnerships with teams and leagues, such as its relationship with Detroit Lions that includes branded blackjack and roulette games in Michigan.

“When it comes, as we are now, into the renewal cycle for all these team deals, my ROI on a Detroit Lions relationship is amplified by the fact that I can cross-sell that sports player into a branded gaming experience,” he said. “So I’m more inclined to continue investing in sports teams because, commercially, it makes sense for us.”

Greenblatt also expects online-casino regulation to pick up in the US next year, which could be a boon for the casino-branded app. Online casino gaming, also known as igaming, is legal in only a handful of US states and has expanded slower than legal sports betting.

“I think, 2024, we’ll see some movement,” Greenblatt said, encouraged by an October conversation with regulators in one “meaningful” state, in which the bill sponsor was “more positive than I’ve ever seen them.”

The biggest challenges facing BetMGM and its rivals heading in 2024

In addition to the challenging competitive environment, BetMGM has faced questions about its 50/50 ownership structure, with Entain’s CEO stating in October that “joint ventures don’t last forever” and MGM previously indicating that it would like to own the entire company.

However, the two companies also stated in October that the current structure would remain in place for the foreseeable future, effectively putting speculation about the brand’s future to rest for the time being.

“I feel more optimistic about our ability to execute effectively than ever before,” Greenblatt said in a statement. “Where I’m less optimistic is the macroeconomic environment and the availability of discretionary money.”

Greenblatt stated that a significant challenge for BetMGM and its competitors in the coming year will be the availability of consumer spending, as well as the impact of inflation, rising interest rates, and property costs on leisure spending. Historically, the gambling industry has not been as affected by economic fluctuations as other industries, but it remains a risk, according to him.

Nonetheless, he is laser-focused on what he can control, such as improving BetMGM’s products and shortening the time to market for new releases in 2024 in order to remain at the forefront of the industry.

“Complacency is the way to give up a leading position,” Greenblatt explained.