【willbetthe bomb】BetMGM to cut 83 jobs in cost

NEXT.ioreached out to BetMGM for comment, and a company spokesperson confirmed the job cuts as part of a broader cost-cutting strategy.

“After carefully reviewing our priorities for 2025, BetMGM has made the difficult decision to reduce headcount across some divisions of the organisation,” the spokesperson said.

“We recognise the real impact this has on our colleagues and their families. As we make these unfortunate but necessary changes, our priority is supporting those affected with care and respect while ensuring BetMGM remains strong for the future.

“We’re confident that this will help position us for continued success as an iGaming and online sports betting leader.”

The MGM Resorts and Entain joint venture employs around 1,400 people in total.

Target: EBITDA positive

BetMGM projects net revenue of $2.4bn to $2.5bn and expects to achieve positive EBITDA in 2025.

In 2024, the joint venture reported a $244m EBITDA loss — an increase from its $62m loss in 2023.

However, the company saw a 7% increase in net revenue to $2.1bn in 2024, with its online casino division experiencing a 13% revenue jump to $1.48bn

This growth followed a period of investment from its owners, with the company stating just over a year ago it was aiming for a 20-25% US market share.  

M&A speculation

Meanwhile, last week analysts at Bloomberg Intelligence suggested that MGM Resorts may seize the opportunity to take full control of BetMGM amid the sudden departure of Entain CEO Gavin Isaacs in February.

“Entain’s CEO departure has created a leadership vacuum that could prompt MGM to consider acquiring Entain’s 50% stake in BetMGM, valued at $4.2bn to $5.6bn,” the analysts said.

BetMGM currently holds a 14% market share in the US, ranking third behind DraftKings and FanDuel.

The analysts also noted that BetMGM, under the leadership of CEO Adam Greenblatt, expanded its share of online sports betting handle in five key US markets by about two percentage points between Q3 and Q4 last year.