BetMGM Trimming Staff at New Jersey Headquarters, as Online Gaming Firm Labors

• Gambling News
• 04 March 2025

BetMGM is cutting costs at its New Jersey headquarters by letting go of numerous employees. 

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

The announcement was made through a WARN Notice, also known as a “Worker Adjustment and Retraining Notice.” Federal and state regulations mandate that employers in New Jersey with 100 or more workers provide advance notice regarding closures and large layoffs. 

In 1988, Congress enacted the WARN Act to ensure that impacted employees have ample time to secure new jobs prior to their termination. 

Startup to Slowdown 

BetMGM, similar to numerous other sports betting newcomers following the May 2018 significant ruling from the U.S. Supreme Court that granted states the authority to decide the legality of sports gambling, invested significantly in efforts to capture substantial market share. 

As the sports betting sector developed, FanDuel and DraftKings captured the majority of the customer base. FanDuel and DraftKings had significant advantages from their early investments in fantasy sports, leading many fantasy sports bettors to easily shift to sports betting. 

As reported by our associates at Casino Reports, as of February, BetMGM held approximately 8% of the legal sports betting market in the U.S. This market share is determined by handle, which refers to the total amount of money wagered by bettors. 

FanDuel leads the pack at 37%, while DraftKings follows closely with 35.5%. BetMGM ranks in third place, Caesars Sportsbook occupies fourth with 5%, and ESPN Bet completes the top five with just over 3%. 

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

Certainly, not every casino patron and even slots and table game players engage in sports betting. BetMGM appears to have recognized this reality as it faced challenges in increasing its sportsbook player numbers to rival FD and DK. 

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

Consequently, BetMGM is reducing its workforce expenses. 

BetMGM Forecast 

Last month, MGM Resorts announced that BetMGM earnings reached $2.1 billion in the company’s fiscal year 2024, reflecting a 13% increase from 2023. The firm generated approximately $624 million from its sports betting activities, with nearly all but $70 million originating online. The 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 activities. 

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