MGM Resorts International CEO Bill Hornbuckle has said MGM Digital can record revenue of $1bn on the back of increased investment and market share gains.

MGM Digital, which is formed of LeoVegas Group and its brands, including BetMGM outside of the US, is live in 11 markets in Europe, Canada and Latam.

Speaking on the Las Vegas giant’s Q3 earnings call, Hornbuckle expressed his confidence in the division’s ability to continue to take market share and share of wallet.

Via the LeoVegas Group legacy brands across Europe, and BetMGM outside of the US, the operator said it was targeting a 5+% market share in its current jurisdictions.

BetMGM is also live in Brazil, where it operates on a JV basis with media giant Grupo Globo. The firm is aiming for a 10+% market share as per the presentation attached to the earnings call.

MGM categorised Brazil as having “strong growth in Q3 with continued focus on efficiently building brand awareness and acquiring customers”.

MGM Digital will also be underpinned by a new proprietary tech stack after MGM Resorts International snapped up Tipico’s US-facing product last year. The sportsbook platform has already gone live in Denmark.

MGM Digital revenue for Q3 jumped from $141.2m to $174m, while adjusted EBITDA losses widened from $22.8m to $23.2m.

Bosses said revenue growth was “due primarily to organic growth and brand expansion”. EBITDA losses for the year for the division could hit $100m. In the first nine months of the year they reached $83m.

In his pre-prepared remarks on the operator’s Q3 call, Hornbuckle said the digital arm can report $1bn in revenue in the future.

He commented: “We expect that to gain market share and reduce our gross spend in the future and MGM Digital has an opportunity for $1bn in revenue with a significant margin, driving double-digit returns on those investments.”

CFO Jonathan Halkyard added that MGM Digital is a business “capable of $1bn in run rate top line with double-digit EBITDA margins”.

Halkyard was also asked about the digital division’s “stability” and finding the balance between investing in the land-based business and online.

He replied: “The interesting thing is right now, our digital investments are cash generative as opposed to cash consuming.

“We’re in a growth mode in MGM Digital as it relates to our BetMGM brand over in Europe and Brazil.

“But the kind of core LeoVegas business together with BetMGM and North America are both generating pretty substantial cash flow for us.

“It’s not requiring a digital investment and as it relates to other additional investments in digital, we’re really just focused on growing the existing businesses we have right now as opposed to doing any kind of inorganic growth.”

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