""US Sports"" – Google News
BetMGM Co-owner Receive became the newest company to discuss this loyalty from US sports betting customers last week.
Following the fourth quarter results, Entain CEO speaks Jette Nygaard-Andersen BetMGM turned out to be “very good at retaining customers”.
“It’s really about keeping our customers loyal and surprising them with new and exciting products,” said Nygaard-Andersen. “Yes, we spend the first year on clients, but they actually stay with us for quite a long time. So it’s okay to invest to get them on board. “
Of course, Nygaard-Andersen has credited the BetMGM product and marketing team with the holding numbers. In fact, it has been a common theme for multiple operators throughout the winning season.
Strong customer economy
DraftKings said it was essentially spending as much money as possible trying to get customers because the lifetime value (LTV) was so high. And FanDuel said similarly. flutter CEO Peter Jackson noted that US customers are proving it 80% more valuable than their European counterparts.
Why are US sports betting customers so sticky?
For one, signing up for an account is relatively tedious. Operators need details like social security numbers that they may not have in other global markets.
Second, many states still only have a handful of options with relatively off-the-shelf products. So why switch?
“There is actually not that much competition,” said Eilers & Krejcik analyst Alun Bowden “Even with first-time users, churn is generally much lower. They like betting. You won’t just stop. “
US customers who stay true to their brands
Boom sport Chairman Stephen Murphy also pointed out that US consumers are a little different from Europeans.
“In general, Americans are loyal to the brands they love,” Murphy said. “Companies like FanDuel, DraftKings, and Barstool have spent most of the last decade building relationships with their customers and earning that loyalty (and, in some cases, love).”
What does this mean for the sports betting market? First, deep pockets are essential. Getting as many players as you can now is a wise long-term bet.
Second, the first mover advantage is a real thing.
“Late entrants can still gain significant market share,” said Murphy. “But operators have to start building that relationship sooner rather than later.”
You also need to offer something unique that a customer cannot get elsewhere, which is why innovation will be key in the future.
What Else Was In Entain Results?
At BetMGM, the brand has changed its online NGR 140% to $ 178 million for 2020. That was before the guidelines for the third quarter of $ 150 to 160 million.
Both parent companies lost around $ 84 million in the year. That number will “increase significantly in 2021,” said Entain.
Other important takeaways:
- BetMGM is expecting one 15-20% US sports betting and iGaming market share.
- Nygaard-Andersen BetMGM is “in a good position to challenge the second largest operator”.
- The brand has one 35% Share of online bets in Tennessee and 34% in the Colorado.
- Yahoo is the largest affiliate channel, although Entain declined to share metrics from this partnership.