Investor Day APRIL 21, 2021
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Investor Day APRIL 21, 2021
Disclaimer
Cautionary Statements Concerning Forward-Looking Statements
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve substantial risks and/or
uncertainties, including those described in the MGM Resorts International public filings with the Securities and Exchange Commission. BetMGM has based forward-looking
statements on management’s current expectations, assumptions and projections about future events and trends. Examples of these statements include, but are not limited
to, BetMGM’s expectations regarding its financial outlook (including forecasted revenues and EBITDA margins), projected market share position and its expected growth in
new and existing jurisdictions. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and
unknown risks, uncertainties, assumptions and other important factors, that could cause actual results or outcomes to differ materially from those discussed in the forward-
looking statements. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include the
significant competition within the gaming and entertainment industry; the Company’s ability to execute on its business plan; changes in applicable laws or regulations,
particularly with respect to iGaming and online sports betting; the Company’s ability to manage growth and access the capital needed to support its growth plans; and the
Company’s ability to obtain the required licenses, permits and other approvals necessary to grow in existing and new jurisdictions. In providing forward-looking statements,
the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by
law. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-
looking statements.
Market and Industry Data
This presentation also contains estimates and information concerning BetMGM’s industry that are based on industry publications, reports and peer company public filings.
This information involves a number of assumptions and limitations and you are cautioned not to rely on or give undue weight to this information. The Company has not
independently verified the accuracy or completeness of the data contained in these industry publications, reports or filings. Third party logos and brands included in this
presentation are the property of their respective owners and are included for informational purposes only.
Important Note Regarding Non-GAAP Financial Measures
In this presentation we provide certain financial measures, including Net Revenue and Projected Net Revenue from operations, which have not been prepared in
accordance with GAAP. Management believes this presentation, which it uses for its own analysis of operations, is useful in that it reflects the true economic performance of
the business. If BetMGM presented these financial measures in accordance with GAAP, then BetMGM would present the revenues associated with its Nevada digital and
retail sports betting operations differently, until such time as BetMGM is directly licensed as a Nevada gaming operator. Currently under GAAP, its calculation of Net
Revenue would be on a basis net of operating costs, such that the GAAP reported Net Revenue would be lower than the Net Revenue reported herein, with Net Income
remaining the same.
2
BetMGM is a winning combination of two industry leaders
Proprietary retail and
online technology
35+ million platform supported by
member database 2,000+ developers
Iconic brands Leading global
with 31 hotel online operator
and gaming with over 50
destinations licenses in 27
across the globe jurisdictions
Market access Leading expertise in
in MGM operating betting and online gaming,
jurisdictions with 600 dedicated traders
worldwide
$32B 20% - 25% $450M
Long-term total Long-term U.S. Investment this year
addressable market1 market share1
1 See assumptions on page 9
2 Total market share by GGR for retail, Online Sports Betting (OSB) and iGaming across all active U.S. jurisdictions 3
Agenda Adam Greenblatt
Chief Executive Officer
Business and
•
Market Overview
Deep experience in omni-channel gaming and
sports betting from both sides of the Atlantic
Product • Previously Director of Corporate Development
and Strategy at Entain, Ladbrokes Coral and
Marketing
Ladbrokes
• Former mergers and acquisitions banker at
Financials Rothschild & Co
•
Q&A
B.S. from the University of Cape Town
5
Executive Summary
$163M $1B+ 22%
Estimated Q1 Forecasted 2022 February market share across
2021 net revenue1 net revenue1 all active jurisdictions2
$32B 20-25% 30-35%
Long-term total Expected long-term Expected long-term
addressable market (TAM)3 U.S. market share EBITDA margin1
1 Netrevenues and profit margins from operations are based on how management analyzes the true economic performance of the business, which are not prepared in accordance with GAAP. Refer to page 2 for additional detail.
6
2 Totalmarket share by gross gaming revenue (GGR) for retail, online sports betting (OSB) and iGaming all U.S. jurisdictions where BetMGM is currently active
3 See supporting assumptions on page 9
We have created a sustainable competitive advantage
National Market
Access
Leading Product
• Market access currently and Technology
secured or anticipated in Efficient Player
24 jurisdictions1
• Fully-featured
Acquisition and Retention
• Relationship with MGM proprietary tech-stack Responsible
Gambling
Market leading
Resorts minimizes cost
• Proven capability and • Omni-channel attracts
position with
superior
of market access and retains players with
superiority worldwide
money-can’t-buy
• Platform enables B2C
• Relationship with Entain experiences • Longstanding history in
economic
structure
and B2B entry responsible gambling
provides structural cost leadership
advantage • Award-winning rewards
program builds loyalty
and provides distinct • Committed to a
competitive advantage balanced approach to
growth
• Strategic partnerships
deliver players nationwide • Our goal is to provide
at attractive costs per players with an
acquisition (CPA) entertaining and safe
gambling experience
1 See page 10 for additional detail
7
Built by a highly-experienced team
CRO
Matt Prevost
CFO
Gary Deutsch
500+
Employees
VP Trading
Jason Scott
COO
Ryan Spoon
VP Gaming
Matt Sunderland
CEO CTO
Adam Greenblatt Liron Snir Broad experience
VP Strategy & across gaming,
Development technology and
media
Witek Wacinski
CPO
Jarrod Schwarz
VP Compliance
Charles LaBoy
CHRO
Karen Baumwoll
CLO
Andrew Hagopian
8
Massive long-term North American opportunity
Total Long-Term
Addressable Market U.S. • ~65% of the adult population
OSB
• Average GGR per adult of ~$90
Canada
$4.4B
U.S. • ~35% of the adult population
$32B
iGaming
U.S. • Average GGR per adult ~$160
OSB
North American TAM $14.1B
U.S.
iGaming
$13.4B
• ~65% of the adult population1
Canada
• Average GGR per adult of ~$65 for
OSB and ~$115 for iGaming
1 Includes OSB and iGaming
9
Secured broad market access
12 20
Active Expected live
jurisdictions jurisdictions in
next 12 months
40% 24
Population with Market access
expected access in secured or Live
next 12 months1 anticipated2
Market Access Secured or Anticipated2
Current or Future Retail Location3
1 Approximate U.S. adult population with access to OSB and / or iGaming in jurisdictions where BetMGM is expected to be active
2 Includes open license jurisdictions where BetMGM intends to apply for market access 10
3 Future locations at MGM properties subject to enabling legislationProven ability to win in different types of markets
Michigan Colorado New Jersey
Market
Position1
#1 #1 #1
OSB, iGaming, Retail OSB (est.) iGaming
Products
OSB Gaming Poker OSB OSB Gaming Poker
Day-1
Launch
Omni-
channel
Local
Partnerships
1 Based on market share for products listed for last 3 month (L3M) period ended February 2021; CO based on internal estimates
11Poised to sustain rapid growth
Monthly Gross Gaming Revenue (GGR)
✓ Proven ability to
launch on day 1
+400%
1
✓ Platform built to
deliver rapid market
rollout
✓ Top 3 in U.S. OSB2
Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 ✓ #1 in U.S. iGaming2
State Launches
WV NV MI CO OR TN PA IA
IN VA
1 Represents approximate increase in March 2021 GGR versus September 2020
2 Measured by GGR for the L3M period ended February 2021 across all U.S. jurisdictions 12Positioned to be a long-term market leader
Overall Estimated National Market Share1
35%
30%
Competitor 1
25%
BetMGM
20%
Competitor 2
15%
10%
Competitor 3
Competitor 4
5%
0%
Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 Jan 2021 Feb 2021
1 Total
market share by GGR for retail, OSB and iGaming across all U.S., including jurisdictions where BetMGM is not currently active; internal
estimates used where operator-specific results are unavailable 13Agenda Ryan Spoon
Chief Operating Officer
Business and
•
Market Overview
Deep product and technology experience across
the digital sports and media industries
Product • Most recently served in various senior
leadership roles at ESPN, including SVP of
Marketing
Social & Digital Content and SVP of Digital
Product and Design
Financials • Former venture capitalist at Polaris Venture
Partners
Q&A • B.A. from Duke University
14Technology enables exceptional user experience
Customer Channels Product Principles
Sports Betting Simplicity
Enabled by our
Casino Speed
LEADING
GLOBAL &
PROPRIETARY
Retail & Omni Live
TECHNOLOGY
Loyalty & Rewards Personalization
15Proprietary tech-stack provides competitive advantage
Multi-Brand
Competitive Advantages
✓ Multi-brand capabilities
Omni-Channel
✓ Seamless omni-channel offering
Mobile POS Desktop Kiosk
✓ Best-in-class integrations
API Services
✓ Robust player analytics
✓ Superior operating flexibility
Sportsbook Casino Poker Bingo
✓ Unmatched scalability
Player Management System
✓ Cost efficient
Supporting Ecosystem Tools
16The King of Sportsbooks
2M+
Sports bets per day made
through Entain platforms
worldwide
43% Of total handle comes from
in-play bets
116% Quarterly growth in parlay
bets
33% Of NV retail bets placed at
kiosks
Player-centric
platform optimizes the
user experience
All data for Q1 2021; quarterly growth versus Q4 2020
17The market leader in iGaming
#1 Market leader in U.S.
iGaming market1
674 Unique slot, table, and
instant win games
71% Of iGaming players played
in-house games2
15% iGaming GGR from Live
Dealer games3
Depth and exclusivity
of content creates a
competitive moat
1 Measured by GGR for the L3M period ended February 2021 across all U.S. jurisdictions
2 March 2021 for all jurisdictions with active iGaming 18
3 Last 12 month (LTM) period ended March 2021 for NJ onlyMore on the horizon
1 Denotes ranking improvement in Eilers & Krejcik March 2021 U.S. Sports Betting App Rankings
19More on the horizon
20More on the horizon
21Agenda Matt Prevost
Chief Revenue Officer
Business and
•
Market Overview
Unique combination of brand leadership
experience and expertise in Europe’s most
competitive betting environment, with a deep
Product understanding of the U.S. and U.K. consumer
and media landscape
Marketing • Previously served as the CMO of Coral
Interactive in Gibraltar
Financials
• Formerly an Operating Executive at Cerberus
Q&A
Capital Management and consultant at
McKinsey
• M.B.A. from the Kellogg School of Management
and B.S.E. from the University of Michigan
22Pillars of our marketing strategy
1 Brand 2 Omni-Channel 3 Personalization 4 Integrated
Partnerships
BI ENGINE
Strategy leverages our competitive differentiation
and technological superiority to
maximize ROI across all channels
231. The leading sports betting and gaming brand
84% National MGM brand
awareness1
75% 75% of OSB players have
also engaged in iGaming2
15 Retail sportsbooks
nationwide, and growing
$250 Long-term CPA target
Our brand resonates
with both sports and
iGaming players
1 Brand awareness for MGM Resorts International; general U.S. population age 21+; 3 rd party market research
2 For MI only from launch through March 2021 242. Omni-channel starts with full loyalty integration
35 million+ 24
World class hotel and
18% 100%
M life Rewards
Members gaming destinations in
the U.S. with loyalty
Of FTDs in 2020 were of BetMGM players integration
active with MGM1 BEST LOYALTY PROGRAM enrolled in M life
Global Gaming Awards in 6 of the last 7 years
1 First time depositors (FTDs); includes M life players who were active in the 12 months prior to acquisition
252. Competitive differentiation through on-property experiences
42.5M Annual visitors to Las
Vegas1
15.2M
Available room nights
annually at MGM U.S.
properties2,3
9,000+
Publicly ticketed live
events held annually at
MGM properties2
8,500+ On-property March
Madness registrations
Brick-and-mortar presence
feeds acquisition funnel
and creates irreplaceable
experiences
1 For 2019 per Las Vegas Convention and Visitors Authority Center
2 For full year 2019 26
3 Includes CityCenter2. The omni-channel advantage
Non-MGM Sourced
MGM Sourced1
Est. Normalized Avg.
Marketing ROI is
5.4x
157%
higher for MGM-
sourced players2
100% 100%
Value of omni-
channel will
increase post-COVID
28%
CPA GGR
1 MGM Sourced players include on-site registrations and other directly attributable marketing sources
2 Marketing ROI defined as GGR per month divided by cost per acquisition (CPA) 27
All information presented for Q1 20213. Utilizing customization to maximize player value
Personalized marketing with dynamic elements
results in 75% higher engagement1
Dynamic item
based on offer
Personalized
items based
on behavior /
value
Personalized
items based
on behavior /
value
1 Measured by click-through rate
283. Personalization enhances acquisition and retention
Acquisition
Retention
Right Offer. Right Segment. Right Time.
293. Personalization, a player experience
Joe bet on the Yankees in Joe watched the game Joe is sent key game Joe celebrates his team
their last game. An hour live. The Yankees went information throughout, winning the game. 2 out
before the game, he received ahead early and Joe’s linking to in-play bets. He of 3 bets paid out.
an app notification with a parlay looked good. shared the excitement with
pre-built parlay. his friends.
Meet Joe
Baseball
Parlay
In-Play
Yankees
He tapped the message and the The Yankees recorded
app opened with a pre- another K, taking them to 6.
populated bet slip, making it Joe received a push offering
easy to place the bet. Joe had him current odds on 10+ Ks
more skin in the game and was for the Yankees.
excited.
PLACE PLACE
BET BET
Pre-event In Play Event to Event
304. Integrated partnerships enhance and extend brand awareness
Media and
Retail
28%
National of all acquisition
from Partnerships &
Affiliates1
1,000+
Regional
days of unique
player experiences
1 Percentage of total FTDs from partnerships and affiliates for Q1 2021
314. Continually expanding Yahoo integration
Seamless player journey SSO Capabilities
Yahoo Betting-
Sports focused
reaches articles #1 BetMGM
~70 million received referral
fans per ~220m partner
month views in
2020
Yahoo FTDs per Month
2020 2021
324. Continually expanding Yahoo integration
Integrated Content Direct Link
Yahoo Betting-
Sports focused
reaches articles #1 BetMGM
~70 million received referral
fans per ~220m partner
month views in
2020
Yahoo FTDs per Month
2020 2021
33BI engine enables rapid improvement in player metrics
Acquisition Conversion Retention
Business • Predictive analysis pROI • Pinpoint drop off within • Personalization of
Intelligence calculated within 7, 14, 21 conversion funnel experience across player
Enablers days
• Reactive responses and
lifecycle, value, and product
preferences
• Optimization of offers by proactive campaigns driven
channel, product, state by analytics and A/B testing • Data-driven decision making
around player segmentation
and investment
FTDs Conversion Rate1 Active Days per Month2
Key +335% +31% +55%
Performance
Indicators
Full Q1’21
Year Actual
Actual
2020 2021E Q1 2020 Q1 2021 Q1 2020 Q1 2021
1 Defined as FTDs divided by total registrations
2 NJ only across all products 34Agenda Gary Deutsch
Chief Financial Officer
Business and
•
Market Overview
Strong understanding of early-stage venture
capital and private equity–backed startups
Marketing • Most recently CFO and EVP Corporate
Development at New York–based marketing
Product
services company, LiveIntent
• Formerly served in various senior finance and
Financials strategy roles at Disney, Lucent Technologies,
M5 Networks and TagMan
Q&A • M.B.A. from the Wharton School of Business
and B.S. from the University of Colorado,
Boulder
35Financial highlights
$163M $1B+ $450M
Est. Q1 2021 FY 2022 Expected
Net Revenue1 Forecasted Net Capital
Consumed in
Revenue1 20212
Up 114% versus Q4’20 and Driven by continued growth 2021 highest planned
nearly 90% of full year in current jurisdictions plus annual cash usage; $210M
2020 revenue key new launches drawn in prior years
Committed
20-25% 30-35% Investors
Expected long-term Expected long-term MGM and Entain committed to
U.S. market share EBITDA margin1 continued efforts to increase
market share and achieve
profitability targets
1 Net revenues and profit margins from operations are based on how management analyzes the true economic performance of the business, which are not prepared in accordance with GAAP.
Refer to page 2 for additional detail. 36
2 Total expected capital consumed for opex and capex.Path to state-level profitability
4. Growing Annuity
Steady base of real-money
3. Cumulative players yields long-term cash
Payback flow
Cumulative profit from all
2. Contribution cohorts exceeds upfront
Breakeven market access and
cumulative acquisition costs
Cash flow from maturing of all cohorts
cohorts exceeds acquisition
1. Acquisition cost of new cohorts
Player acquisition costs drive
upfront cash burn
First 3 months 10-24 months 2-3 years Year 3 onward
371. Acquisition
Key determinants of player acquisition cost: Illustrative Cohort Analysis
• Omni-presence The majority of churn Churn stabilizes while
happens quickly player values
continue to grow
• Entry at market launch
Player Value1
• Multiple products for cross-sell
Digital Sports Q1 2021 TN CPA was 41%
lower than NJ
Retention Rate
75% of digital sports players in MI have
also engaged in iGaming 1 2 3 4 5 6 7 8 9 10 11 12
Months from Acquisition
1 Defined as NGR per active player
382. Contribution breakeven
Key determinants of contribution breakeven: Illustrative State Breakeven
• State Tax Rates
Overall
• Market Access Revenue Shares Contribution
• Market-specific Player Values
Individual
Cohorts
Profitability
VA NGR per player already hit highest of Time
all digital states in March 2021 from
launch
MI forecasted to be contribution
breakeven by Q1 2022
Average time to
OSB: 12-24 months
Contribution
iGaming: 10-14 months
Breakeven
393. Cumulative Payback
Key determinants of cumulative payback: NJ NGR and Contribution1
2018/19 cohort 2020 cohort 2021 cohort 2022 cohort
• Upfront Market Access or Licensing Costs
• Player CPAs $203
• State-specific cost & player economics
$114
$60
$41
NJ expected to achieve full payback in
Q3 2021 $2
NGR Contribution
Contribution NGR Contribution NGR Contribution NGR Contribution
$(34)
2019 2020 2021E 2022E
With optimal conditions, MI is on track to
payback in about 2 years
Average time to
OSB: 3 years mid-case
Cumulative
iGaming: 2 years mid-case
Payback
1 NJ data based on BetMGM tracking of the “true economics” of the operating business in NJ
404. Growing annuity
Key determinants of annuity value:
Player Value1
• Loyalty & Retention Marketing
NGR Player Retention
+14% 96%
• Customer Service
• Product Experience
Q4'20 Q1'21 Q4'20 Q1'21
NJ NGR per active for players active in
Q1 2020 grew by 147% in Q1 2021 for that
same group of players2
NGR per Active
+18%
Q4'20 Q1'21
1 Data for June 2020 cohorts and earlier; NJ only
2 Q1 excludes March due to COVID-impact 41Long-term profit outlook
Long-term Margin Target1
Structural Cost
100% Advantages
✓ Omni-channel reduces marketing
spend, increases retention and
57-60%
increases player value
✓ In-house tech significantly cheaper
30-35%
✓ Revenue share lower due to MGM
market access
✓ Scale supports national advertising
Net Gaming Taxes Operating Costs2 Direct Labor Gross Margin Marketing & EBITDA
Revenue SG&A
The benefits from the support of MGM and Entain point to strong long-term
gross margins and long-term EBITDA margins of 30-35%
1 Non-GAAP performance indicators
2 Includes market access, payment processing, geolocation, KYC and datacenter costs 42Conclusion
$32B long-term North American market opportunity1
Sustainable competitive advantage through proprietary
technology, product, loyalty and omni-channel
20-25% expected long-term U.S. market share
Advantaged cost structure with 30-35% expected long-term
EBITDA margin at scale2
$1B+ forecasted net revenue in 20222
1 See supporting assumptions on page 9
43
2 Net revenues and profit margins from operations are based on how management analyzes the true economic performance of the business, which are not prepared in accordance with GAAP. Refer to page 2 for additional detail.To ask a question, please connect via the live
audio dial-in details below:
US: +1 (833) 562-0152
Q&A
UK: +44 (0) 20 3107 0289
International: +1 (661) 567-1234
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