PA sportsbooks and online casinos have completed their 2022 Q4 earnings calls. Most operators had a strong Q4 and are eyeing profitability by some point in 2023.
Here’s a roundup of the top information from PA operators.
FanDuel remains the biggest player in the PA gambling industry
FanDuel has been dominating the gaming industry, especially in Pennsylvania.
It regularly maintains 40% market share in sportsbook handle in the Keystone State. According to FanDuel’s earnings presentation, the gaming company held a 50% market share across the country in sports betting and a 21% market share in online casinos in Q4.
FanDuel reached profitability in Q2 and Q4 in 2022, excluding the Maryland and Ohio launches.
Flutter CEO Peter Jackson has even higher hopes for 2023.
“We remain on track for US profitability for the full year in 2023,” Jackson said in an earnings presentation.
Flutter’s stock price has made up significant ground from July 2022 when the price sat at $45.35. Now, Flutter and its investors has worked the price up to $79.98.
Analyst predicts DraftKings’ profitability following massive 2022 growth
DraftKings had its 2022 Q4 earnings call last month and reported strong numbers.
The company posted $855 million in revenue in Q4, an 81% growth from Q4 2021. Over the full year, DraftKings’ revenue grew 73% compared to 2021.
On Feb. 17, DraftKings stock finished 15% higher than the start of the day at $20.54, after DraftKings CEO and Co-Founder Jason Robins announced that DraftKings was the No. 1 downloaded app since Super Bowl Sunday. The stock has since reduced slightly to $18.98.
Robins pointed to in-house live same-game parlay products and other iGaming features that have had success.
CFO Jason Park mentioned the app’s success in retaining customers who are less reliant on promotions.
Matt Farrell, research analyst at investment banking company Piper Sandler, wrote that there could be a path to profitability for DraftKings.
“While the top-line upside is impressive in the current environment, we believe the profitability dynamics are more impressive,” Farrell wrote. “It is very clear that the company is laser focused on reaching (and potentially exceeding) its profitability targets.”
BetMGM exceeded Q4 projections and moves toward profitability
BetMGM sees positive cash flow and profitability on the horizon.
The Las Vegas-based company reported quality earnings numbers from the January call. BetMGM recorded $1.44 billion in 2022 revenue, which was slightly ahead of projections.
CEO Bill Hornbuckle said during the call that BetMGM is “the leader in what is financially the most important segment in the nation, iGaming, and is making overall progress towards its profitability.”
According to an earnings presentation, BetMGM maintained a market share of 25-31% in the online casino space.
The company expects to be EBITDA positive in the second half of 2023. BetMGM’s stock price is $45.55, the highest it’s been since November 2021.
Rush Street Interactive displays efficient promotional programs
Rush Street Interactive (RSI), like most operators, delivered solid numbers in 2022 Q4. RSI reported revenue of $165.5 million during that time frame, an increase of 27% from 2021 Q4. RSI also reported a net loss of $31.1 million in Q4, down from 38.1 million in 2021.
Full year 2022 revenue for RSI was $592 million, up 21% year-over-year.
CEO Richard Schwartz has high hopes for 2023.
“We expect to achieve positive adjusted EBITDA for the second half of 2023 and continue to be selective as we prioritize investments in markets with higher returns,” Schwartz said in an earnings statement.
RSI has shown some efficient promotional programs in Q4 2022. RSI promotional credits accounted for 22.2% of gross revenue compared to the top four largest competitors, who combined for 33.7%.
One of RSI’s popular promotions is Squares. Prominent in NFL betting, Squares has been offered for NBA games due to the frequency of the schedule.
RSI’s BetRivers online casino PA is one of the leaders in the Keystone State in terms of revenue. BetRivers generated more than $28 million in revenue in January, which ranks third among operators.
More online casinos are expected to launch in 2023, leading to more competition. Schwartz addressed the increased competition.
“We make sure that we stay ahead by constantly innovating and developing better user experience. That’s what we can control,” Schwartz said. “We can’t control what the competitors do, we can control how well we execute and how well we innovate to create experiences and players want to stay with us and we’ve been very successful delivering that over the years. I have a lot of great ideas we’re working on that we think are going to really help us in that area.”
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