BetMGM targets $1 billion in net revenue in 2022

(Reuters) - BetMGM, a U.S. sports-betting joint venture between MGM Resorts and Entain, said on Wednesday it was targeting net revenue of $1 billion in 2022 and that it expected an investment of $450 million from its owners this year.

Online betting boomed during the COVID-19 pandemic as people staying at home explored new ways to keep themselves occupied.

“BetMGM has demonstrated strong momentum, building a leading position in iGaming and is on track to be the number two operator across sports betting and iGaming in the U.S.,” its Chief Executive Adam Greenblatt said in a statement.

FTSE 100-listed Entain, which rebuffed a takeover approach from MGM earlier this year, said last month that BetMGM would expand into 20 U.S. states from 12 before 2022 and turn a profit in 2023.

BetMGM’s rival DraftKings, the official sports betting partner of the National Football League, raised its 2021 revenue target range to $900 million to $1 billion from $750 million to $850 million in February after a stellar quarter.

Multiple U.S. companies have scooped up their UK rivals over the past year as the United States overturned earlier bans on online betting.

Reporting by Muvija M in Bengaluru; Editing by Shinjini Ganguli and Aditya Soni