Entain, Foxy Bingo owner, believes that his American joint venture can challenge the top online US gambling businesses after it posted solid growth in the summer.
According to the FTSE 100 firm, BetMGM (which it runs with casino giant MGM Resorts) held a 23% market share in US-based online gambling and sports betting in the three months ending August.
It said that BetMGM was the US’s industry leader in internet gaming with a nearly one-third share. Based on August industry data, it is ‘challenging to hold the top market position in sports gambling and gaming.
Big player: Entain claimed that BetMGMG, which it shares with MGM Resorts, held 23% of the market in online betting and sports betting during the three months to August
BetMGM has a presence now in 16 states, having launched in Arizona, South Dakota, and Wyoming last month. It claims it experienced a successful beginning’ to the NFL season after an advertising campaign featuring Oscar winner Jamie Foxx.
It even managed to get the first ever sports bet from space. Jared Isaacman, a billionaire who placed money on the Superbowl win by the Philadelphia Eagles, was on Inspiration4, the first private orbital mission to Earth.
Entain saw a 6 percentage increase in net gaming revenue (NGR) in constant currency despite some impressive comparative trading.
Coral and Ladbrokes also recorded a 23rd consecutive quarter of double-digit online revenue growth thanks to an increase in internet sports betting. When excluding Germany, digital revenues grew 18 per cent.
NGR rose by a fifth in the first nine months, but sports gambling was almost 40% higher and wagers 30% higher.
The company’s stores saw an increase of 1 percent, highlighting that UK volumes are’recovering pre-Covid levels’ thanks to the recovery in high street footfall.
To boldly bet: BetMGM received the first ever sports wager from space when billionaire Jared Isaacman (pictured) put money on NFL team Philadelphia Eagles to win the Superbowl whilst on Inspiration4, the first all-private orbital mission around Earth
Following the strong performance, the business expects underlying profits this financial year to be between £850million and £900million in accordance with previous guidance.
Chief executive Jette-Nygaard-Andersen said the company’s results show its ‘continuing ability to deliver sustainable, consistent and diversified growth.
“Our powerful Entain platform offers customers great products and experiences which allows us to grow ahead market as demonstrated by 23 consecutive quarters with double-digit online growth.”
52-year-old boss from Denmark added that Entain is aiming to grab a large share of the rapidly expanding global gambling industry. Global Market Insights estimates Entain could be worth $160 billion by 2026.
The US is expected to see a lot of this growth, as sports betting has expanded rapidly since the 2018 Supreme Court decision that effectively overturned a federal ban on the practice in nearly all states.
Golden payout: Entain chief executive Jette Nygaard-Andersen (pictured) could stand to make up to £4.4million if Massachusetts-based DraftKings successfully acquires Entain
The Professional and Amateur Sports Protection Act of92 granted exemptions to only four states under a grandfather provision: Oregon, Delaware and Montana.
Many of the nation’s largest states have legalized sports gambling since then, including New Jersey which pushed hard for its repeal, New York, Pennsylvania, and Illinois.
Another company that has benefited is Massachusetts-based DraftKings. They have been trying to acquire Entain as the latest example of an American business trying buy a British bookmaker.
Entain, a London-listed company, did not mention DraftKings’ takeover bid in today’s announcement. It rebuffed a £25 per share offer last month, but is now considering a bid valuing it at £16billion.
Analysis by the Daily Mail estimates that top officials could receive payouts worth £110million if the new DraftKings deal goes through, with Nygaard-Andersen earning up to £4.4million and finance chief Robert Wood receiving £12million.
Shares in Entain plc closed trading 1.7 per cent, or 35 points, lower at £20.73 on Tuesday. Their value has increased by more than 95 percent in the past 12 months.
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