BetMGM, a joint venture between MGM Resorts International and Entain, has announced that it will cut 83 jobs at its headquarters in Jersey City, New Jersey.
According to a public notice filed with the New Jersey Department of Labor, the staff will be made redundant effective 27 May, 2025.
Under federal and state law, employers with over 100 employees are required to give advanced notice about closures and mass layoffs. Congress passed the WARN Act in 1988 to give those affected as much time as possible to find new employment.
The company cited cost-saving measures as the primary reason for the job cuts. A BetMGM statement to SBC Americas said: “After carefully reviewing our priorities for 2025, BetMGM has made the difficult decision to reduce headcount across some divisions of the organization. We recognize the real impact this has on our colleagues and their families.”
It continued: “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 redundancies come amid a slowdown in the US sports betting market. According to the latest American Gaming Association Commercial Revenue Tracker, sports betting revenue fell by 29 percent in December 2024 year over year. Analysts suggest there are a number of reasons for the significant drop.
Is Prohibitive Legislation Driving People to Crypto?
The general trend in gambling regulation has been one of prohibition rather than legalization. States are upping tax rates on operators and becoming harsher on advertising, free bets, and bonuses, therefore making offerings less appealing. Coupled with the laissez-faire attitude of crypto sportsbooks, which can provide a full sportsbook offering with no wagering restrictions, more consumers could be opting to bet offshore.
BetMGM’s recent earnings call revealed a $244 million EBITDA loss for 2024. The company attributed the loss to unfavorable sports outcomes and increased investment. Although it reported a negative EBITDA, revenue grew by 7 percent to $2.1 billion, and the company has projected growth to $2.4-$2.5 billion in the 2025 financial year.
The company has struggled to achieve its desired market share in the United States, with recent data showing a 6.5 percent share. Although this gives the BetMGM third place in the commercial regulated operator rankings, it is considerably lower than FanDuel and DraftKings, which control over 75 percent of the market.
BetMGM’s casino offering continues to be a growth driver, with 13 percent revenue growth in 2024 to $1.48 billion. It maintains a 22 percent market share nationally, but opportunities for continued growth are limited given the lack of iGaming legalization across the country.
In a recent earnings call, the company has attributed its struggle to gain ground in sports betting to its reliance on converting retail customers from MGM Resorts’ casino database. This has been considerably more difficult than FanDuel and DraftKings, who leveraged an existing stronghold in daily fantasy sports to bring people into legalized sports betting.
Despite this, the company’s leadership has expressed optimism about achieving a positive EBITDA of $500 million for 2025, provided revenue targets are met.
Could Crypto Be Headed to BetMGM?
Currently, BetMGM does not accept digital currencies as a payment method. In 2023, it posted an editorial explaining blockchain technology and its integration with gambling, but there has been little to no activity since.
Analysts believe that the widespread adoption of crypto as a payment method in gambling legislation could have a domino effect: once one state and one operator offer it, the rest will follow.
DraftKing’s Chief Executive Officer, Jason Robins, admitted that the company is closely monitoring regulatory developments. “It’s certainly something we’re looking at. It’s not entirely a product roadmap question,” he told investors on an earnings call.
He added: “It’s also getting regulators comfortable with it because regulators typically are cautious around crypto in the states. Obviously, at a federal level, there’s a lot of pro-crypto deregulation, I think, coming.”
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