BetMGM is cutting costs at its New Jersey headquarters by laying off numerous employees. 

In North America, BetMGM is a joint venture equally owned by MGM Resorts International and Entain. The iGaming and sportsbook platform, along with retail sports betting provider, notified the New Jersey Department of Labor & Workforce Development that it will eliminate 83 jobs at its corporate offices by May 27, 2025. 

The announcement was made through a WARN Notice, or a “Worker Adjustment and Retraining Notice.” Federal and state regulations mandate that employers in New Jersey with 100 or more employees provide advance notification regarding layoffs and facility closures. 

In 1988, Congress enacted the WARN Act to give impacted employees ample time to seek new jobs before being terminated. 

Startup to Slowdown 

BetMGM, similar to numerous other sports betting startups following the May 2018 pivotal ruling by the U.S. Supreme Court that allowed states to decide on the legality of sports wagering, made significant investments to capture as much market share as they could. 

As the sports betting sector evolved, FanDuel and DraftKings captured the majority of the consumer market. FanDuel and DraftKings benefited from significant early advantages as they were already involved in fantasy sports, leading many fantasy sports bettors to easily switch to sports betting. 

As reported by our friends at Casino Reports, by February, BetMGM held roughly 8% of the U.S. legal sports betting market. Market share is determined by handle, which refers to the sum of money wagered by bettors. 

FanDuel leads at 37%, while DraftKings follows closely at 35.5%. BetMGM ranks a distant third, Caesars Sportsbook is in fourth place at 5%, and ESPN Bet completes the top five at just above 3%. 

DraftKings and FanDuel effectively transitioned the majority of their DFS users to their mobile betting platforms. BetMGM, on the other hand, focused on converting MGM Resorts patrons who are members of the casino firm's rewards program. 

Certainly, not every casino patron and even slot and table game enthusiasts are involved in sports betting. BetMGM appears to have recognized this reality as it has faced challenges in increasing its sportsbook player base to rival FD and DK. 

Transforming MGM’s physical visitors into online gamblers is likely simpler for iGaming. However, online slots and interactive table games are restricted to just seven states. BetMGM operates in just four states, and it doesn't appear that any more will enter the iGaming sector in the near future. 

Consequently, BetMGM is reducing its staffing expenses. 

BetMGM Forecast 

In the previous month, MGM Resorts announced that BetMGM's revenue reached $2.1 billion in the company’s 2024 fiscal year, reflecting a 13% increase compared to 2023. The company earned approximately $624 million from its sports betting activities, with nearly all but $70 million generated online. iGaming GGR reached nearly $1.5 billion. 

Although revenue increased, BetMGM's earnings before interest, taxes, depreciation, and amortization (EBITDA) continued to be negative, reflecting a loss of around $244 million, largely attributed to ongoing acquisitions such as LeoVegas and Tipico’s U.S. sportsbook operations. 

Company representatives are hopeful after referring to 2024 as a “year of investment and recovery.” They believe the 2025 fiscal year might be when BetMGM becomes profitable. However, that largely depends on whether BetMGM’s revenue can increase to the company's forecasted $2.4 billion to $2.5 billion to reach an EBITDA of $500 million.