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SportsTranscript
00:00All right, so that coveted third place ranking, so to speak, in the sports betting universe.
00:09We know FanDuel and DraftKings have alternated one, two for a long time.
00:13We know FanDuel has more or less captured more of that share over the last year or so.
00:20Three seemingly up for grabs.
00:21ESPN bet thinks that they're going to have it.
00:23BetMGM has, you know, danced around three, four.
00:26They had an earnings report, Matt.
00:28I know you were on the call.
00:29So what did you learn?
00:30Yeah, you know, BetMGM is really happy with the way things are going now, Craig.
00:35If you remember, the story for BetMGM this year has kind of been a down one.
00:40They didn't expect to still be investing so much in the company.
00:43And they had to make those investments because when you think about BetMGM, remember that
00:47it's owned by MGM Resorts in the U.S. and a company called Entain in the U.K.
00:52And Entain came in with their European and British betting background.
00:58And they thought that would translate to the U.S. and it just didn't.
01:01And they let it go a little too long, essentially, is what their interim CEO said at one point
01:07this year.
01:08Now they have a new CEO, and Gavin Isaacs, the guy is an industry veteran.
01:12And if you're looking for somebody to right your ship, he is certainly one of the pilots
01:17you want on it.
01:19And so basically what BetMGM is seeing is it's seeing stability in the U.S.
01:25They don't see that market share slipping anymore.
01:28They claim 22% of iGaming market share for the third quarter and 8% of sports betting
01:33market share for the third quarter, giving them a 15% blended market share.
01:38And they're happy with that.
01:39Basically this year they want to hit their numbers and then they'll start growing next
01:44year.
01:45And if you remember, Craig, back in August, Nevada single wallet was added to BetMGM,
01:51meaning that when you go to Nevada, if you had an account from Pennsylvania or another
01:56state, it will already work in Nevada.
01:59And the flip side of that is if you go to Nevada and you sign up a new account, if you
02:04go back to a jurisdiction that has BetMGM in it, you can continue to use that same account,
02:09that app, really trying to just create less friction for people.
02:14And they couldn't give specifics.
02:16It hasn't been live that long, but they said, look, we're excited by the opportunity.
02:20We'll put it that way.
02:23As for profitability, you know, they still don't know where they're exactly going to be on that
02:28next year.
02:29One of the trends that we've been talking about, Craig, is that it has been cheaper recently for
02:34these companies to acquire new customers, whether it be on the iGaming side or the sports
02:39betting side.
02:41BetMGM plans to spend $750 million all told on customer acquisition this year.
02:46And so really, it just comes down to, you know, will the math change and will it be too
02:52expensive next year?
02:54And so some of that $750 million won't be spent and dropped to the bottom line, or are the
03:00metrics going to stay great?
03:01And should BetMGM really be looking at maybe bumping that up to an 850 or more?
03:06We know that FanDuel has been very aggressive in customer acquisition, and they've said that
03:10there's no time, there's no reason to stop.
03:13It's still hitting all their math.
03:16And BetMGM has improved its product, Craig.
03:20We know that these products are getting closer and closer to what the DraftKings and
03:23FanDuels are, and BetMGM now has more markets for all of the major sports that's leading to a
03:31higher hold, it's leading to more legs per parlay, it's doing all those things that kind of
03:36bump your bottom line up.
03:38So all told from BetMGM over at Entain, everybody is happy with what they're seeing.
03:45Everybody is happy with the way that BetMGM is turning the corner.
03:50And now that they see the bleeding stop, so to say, they're ready to see where they can take
03:55that momentum and how far it can go.