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BETMGM FIRST HALF 2024 UPDATE

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BETMGM FIRST HALF 2024 UPDATE

 

BetMGM, LLC  one of the leading sports betting and iGaming operators across the U.S., jointly owned by MGM Resorts International  and Entain plc, is providing an update on First Half 2024 (“1H 2024”) performance.

Adam Greenblatt, Chief Executive Officer of BetMGM, commented:
“The first half of this year has been very important in laying the groundwork for BetMGM’s future. 2024 is a year of investment, focusing on improving our customer experience and stepping up our level of investment in players. We are encouraged to see this strategy delivering accelerating momentum. We have exceeded our goals for both acquisition and retention, which should lead to higher year-over-year revenue growth for the second half of this year into 2025.

Our online sportsbook players have been enjoying Angstrom-enabled product capabilities since the start of the baseball season, and we look forward to players enjoying this across our wider sports offering leading into the NFL season. We are also very excited to bring our unique omnichannel opportunities to players by fully leveraging MGM Resorts’ presence in Las Vegas. Single Account Single Wallet will be an important driver of the customer experience, with Nevada marking its completion ahead of the NFL season. Our iGaming business continues to perform strongly with attractive returns, and to maximize this strength and momentum, we plan to deploy additional marketing in the back half of this year. Our execution roadmap, building momentum and prospects ahead all support our confidence in BetMGM’s strong future.”

1H 2024 Update

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  • 1H 2024 financial performance demonstrating accelerating momentum through the year
    • Net revenue from operations of $1.0 billion, up 6% versus prior year1,2
      • 2Q net revenue growth of 9% YoY, up from 3% in 1Q
      • 2Q online sports betting NGR per active up 16% YoY
      • 2Q iGaming average monthly actives growth of 18% YoY, up from 9% in 1Q, with no new state launches
    • EBITDA consistent with expectations of 2024 being an investment year, supporting customer acquisition and enhanced player experience initiatives
      • Encouraging online sportsbook CPAs of FTDs driven by successful Super Bowl campaign
      • 1H EBITDA of –$123 million2
  • Established as a leading operator in North America, live in 29 markets with access to 52% of adult population3
    • Continued geographic footprint expansion, with BetMGM launch of digital sports betting in North Carolina in March and district-wide in the District of Columbia in July
    • 13% GGR market share in the U.S. and Ontario across Sports Betting and iGaming4
    • Demonstrates stabilization and continued strength in iGaming with approximately 22% market share5
  • Continued focus on operational execution, delivering improved app, product capabilities, and market-leading partnerships across both digital sports and iGaming
    • Enhanced Sports Product and Technology
      • Further integration of Angstrom capabilities with new markets and features for MLB and back end of NBA seasons, provided by fully in-house single game parlay (“SGP”) and SGP+ products
      • Improved player experiences with enhanced betting and SGP+ journeys, landing pages and new features including live bet tracking
        • Actives who placed an MLB SGP bet this season up 40% YoY6
        • Volume of weekly MLB SGP bets doubled versus last year6
    • Leadership in iGaming
      • Market-leading jackpots – New Jersey jackpot of over $5 million expected to be the largest regulated U.S. online jackpot ever paid
      • Launched exclusive games and innovative reward mechanics with top suppliers, including GameCode and White Hat Gaming
      • Launched BetMGM Arcade, the home for ‘non-traditional’ content including LuckyTap and Crash-style games
    • Best-in-Class Marketing Partnerships
      • Integration of partnerships with X, Marriott Bonvoy, and Associated Press
      • Successful Super Bowl campaign with citywide takeover of Las Vegas and iconic commercial featuring Tom BradyWayne Gretzky and Vince Vaughn
      • Exclusive ambassadorship with Brian Christopher Slots for all online regulated markets
  • Ongoing commitment to player safety, prioritizing responsible gambling across our business
    • Founding member of the newly established Responsible Online Gaming Association (“ROGA”), which brings together the largest U.S. online sports betting and gaming operators to develop and advance responsible gaming practices
    • Expanded the Kindbridge Health program to eight additional jurisdictions, offering self-excluded individuals referrals for problem gambling treatment
    • Research and funding support via sponsorship for the International Center for Responsible Gaming
  • Award recognition, including
    • EGR North America’s awards for both Employer and Sports Betting Operator of the Year
    • Top 20 for Best Workplaces in New YorkTM by Fortune
    • Hashtag Sports awards for both Best Sports Betting Partnership (X/Twitter) and Best Communications Strategy

Outlook

  • As announced on December 4, 2023, BetMGM’s strategic roadmap assigned 2024 as an investment year, supporting enhanced player experiences and improved sportsbook product to drive long-term value for stakeholders
  • Coupled with an improving sportsbook offering, and building on BetMGM’s iGaming strength which already delivers over $400 million contribution annually, expectation of greater than planned marketing investment in iGaming in 2H this year7
  • Additional investment expected to be funded by bank debt
  • Consistent with expectation of 2024 as an investment year, expect 2H EBITDA to be similar to 1H
  • Pipeline of exciting opportunities ahead including key milestones:
    • On track for Angstrom capabilities to be fully integrated across MLB, NBA and NFL offerings ahead of 2024 NFL season
    • Single Account Single Wallet (SASW) rollout expected to be completed with Nevada in place prior to the 2024 NFL season
      • Enabling BetMGM customers in MGM Resorts properties, representing 13 million room nights annually, to sign up at one of BetMGM’s eight retail sportsbooks and return to their home state with the same wallet
      • Completing the integration of player wallets across all BetMGM markets and empowering the final Las Vegas unlock for BetMGM
  • Investment in our execution roadmap, accelerating momentum and opportunities ahead all support our confidence in BetMGM’s pathway to $500 million EBITDA in the coming years

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21VIRAL Speeds Up Game Integration Time for Operators

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21VIRAL, the game aggregation provider focusing on Latin America today, confirmed it is committed to raising the industry standards by introducing next-generation AI technology via its GameConnector platform. This AI technology is designed to ‘speed up’ integration between operators and game content studios, reducing the time from months to weeks.

21VIRAL was founded by industry entrepreneurs with 20+ years of successful experience building and streamlining high-tech supply chain platform technology solutions and enhancing commercial benefits to stakeholders.

Christoph Härtel, CEO of 21VIRAL, emphasized the company’s customer-first approach. He stated, “Our goal is to build a product and solution experience that truly meets the needs of our customers. This is why we decided to specialize in the Latin American market, given its current and expected growth rates.”

“We looked at market-product fit and listened to operators seeking unique game content for their local market in weeks rather than months. So, we launched GameConnector, which will be debuted at the SBC Summit in Lisbon.

The 21VIRAL GameConnector is the equivalent of an engineering hub. It reduces integration headaches for operators and game providers, increases speed to market by using AI, and includes transparent game pricing and commission reporting, which is also a headache for operators in terms of figuring out which games make them money.

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We have onboarded several industry-established operators and game providers in record time using AI to facilitate faster and more streamlined workflows. However, one of the limiting factors of scale-up businesses, especially if you are an operator or game provider, is the technical integration expertise and market access within the supply chain.

Part of the solution to these problems is commercial pricing transparency and integration support, so we have created more accessibility for onboarding operators and game providers. GameConnector will be the enabler for all the technical integration, heavy lifting, and onboarding. We will also offer reverse integration, a process where we integrate our GameConnector Platform into their systems, thereby reducing their work effort. Therefore, the operators have little to zero work effort – it’s a win-win for all parties involved.”

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CT Interactive Expands its Global Footprint with Novibet

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CT Interactive, a global provider of online gaming solutions, has announced the launch of its games on Novibet’s platforms for Mexico (www.novibet.mx) . This partnership underscores CT Interactive’s commitment to expanding its reach and delivering high-quality gaming experiences to players worldwide.

Striving to offer exciting content to its users, Novibet.mx will now feature a selection of CT Interactive’s newest and most innovative games. Players in Mexico can now enjoy Star Girl, a captivating game that combines stellar graphics with thrilling gameplay; The Big Chilli, a spicy title that promises exciting features; Dr. Winstein Buy Bonus, a unique game where players can take control of their gaming experience with the Buy Bonus feature; Clover Queen, a game that brings the luck of the Irish to the reels, offering big wins and enchanting visuals. These slot games are designed to offer a diverse range of gaming experiences, ensuring there’s something for every player’s taste. This launch marks a significant step in CT Interactive’s strategy to bring fresh and engaging content to the rapidly growing Mexican online gaming market.

Simultaneously, CT Interactive has announced the release of its comprehensive portfolio of 61 games on Novibet.com, catering to markets regulated by the Malta Gaming Authority. This extensive collection includes some of CT Interactive’s most popular and enduring titles, such as Lucky Clover, a fan-favorite known for its classic design and rewarding gameplay; Win Storm, an action-packed game with dynamic features and high win potential; HOT 7’s X 2, an exciting slot game that offers double the excitement and twice the winning opportunities. The integration of these games is set to enhance Novibet’s offering, providing players with a wide variety of high-quality slots that deliver both entertainment and the potential for significant rewards.

This partnership between CT Interactive and Novibet is a testament to both companies’ dedication to delivering top-tier gaming experiences.

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Monika Zlateva, CCO of CT Interactive, said: “We are thrilled to partner with Novibet to bring our latest games to more players. This collaboration aligns with our goal of reaching new audiences and providing them with the high-quality gaming experiences that CT Interactive is known for. We look forward to a successful partnership with Novibet as we continue to grow and innovate in the online gaming industry.”

Foteini Matthaiou, Casino Product & CRM Director, said: “At Novibet, our mission is to bring players a gaming experience that is not only entertaining but also distinctive and dynamic. Partnering with CT Interactive allows us to introduce a range of innovative titles that resonate with players seeking something fresh and engaging. We are happy to bring these captivating games to our platforms in Mexico and across Malta Gaming Authority regulated markets, ensuring our users enjoy both thrilling gameplay and the highest standards of quality. This collaboration reflects our ongoing dedication to pushing the boundaries of what online gaming can offer.”

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Compliance Updates

Public Health Advocacy Institute (PHAI) and Congressional Leaders Unveil the SAFE Bet Act to Address Sports Betting Risks

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Public Health Advocacy Institute (PHAI) at the Northeastern University School of Law has supported Congressman Paul D. Tonko (NY-20) and Senator Richard Blumenthal (D-CT) last week in introducing the SAFE Bet Act, which addresses the risks associated with legalized gambling.

The SAFE Bet Act is the first federal legislative initiative to address the vast public health implications of mobile sports betting since sports betting was legalized in 2018. When the SAFE Bet Act is enacted, federal standards will be set to create a safer and less addictive betting environment. While still allowing the freedom for those who wish to participate, these standards will include addressing advertising, affordability, and artificial intelligence issues.

PHAI’s President and Northeastern University Distinguished Professor of Law, Richard Daynard, said: “PHAI’s mission is to serve the greater good by seeking big ideas to advance public health and justice. That is why we’re fully dedicated to playing a leading role in work to bring about a comprehensive public health response to the looming crisis presented by the out-of-control gambling industry.”

“The gambling industry is following a playbook developed by the tobacco industry and this is a direct threat to public health. At PHAI, we will work tirelessly to address this threat and protect public health. Supporting the SAFE Bet Act is part of this effort,” Daynard added.

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PHAI Executive Director Mark Gottlieb said: “It is my desire to play an important role in national and international efforts to develop and implement a public health approach to regulating the gambling industry and online gambling. At PHAI, we utilize a wide range of resources—including litigation and advocacy—to protect public health. It has become apparent that the gambling industry and its partners act with conscious and reckless disregard for public safety. Collaborating with Congressman Tonko and Senator Blumenthal to create the SAFE Bet Act is one part of how PHAI will bring a public health response to the gambling industry.”

“As the Director of Gambling Policy with the Public Health Advocacy Institute it is my role to develop comprehensive public health strategies and advocacy efforts to address the looming crisis being caused by the unprecedented expansion of the gambling industry and online gambling. The ‘responsible gaming’ model of industry self-regulation is unethical and an abject failure. At PHAI, we will help lead a growing movement to expose the failures of the gambling industry’s responsible gaming model. In doing so, we will develop and help implement a series of comprehensive public health reforms designed to regulate the gambling industry, prevent harm, and protect individuals and families. It is a privilege to support Congressman Tonko and Senator Blumenthal as we work to advance the SAFE Bet Act,” said Dr. Harry Levant, PHAI Director of Gambling Policy.

“Since their inception, sports and sporting events have been a chance for family, friends, and strangers to gather together in celebration of beloved teams and athletes in a great American pastime. But now, every single moment of every sporting event across the globe has become a betting opportunity. That resulted in a frightening rise in gambling disorder, which has in turn enacted a horrific toll on individuals, many of whom have lost their home, job, marriage, and their lives. We have a duty to protect people and their families from suffering the tremendous harm related to gambling addiction. Our SAFE Bet Act gets the job done and gives sports back to the American people,” Congressman Tonko said.

At the press conference, Senator Blumenthal said: “Right now, states have legalized gambling, but they failed to protect citizens against those excesses, abuses, and exploitations. State regulation is faint-hearted and half-baked. That’s why we need a national standard–not to ban gambling–but simply to take back control over an industry that is out of bounds.”

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