BetMGM lost the most share of the Virginia sports betting market during the first six months of 2024.
The Virginia Lottery recently reported market share totals so far this year. While the date ranges don’t line up perfectly, PlayVirginia compared the totals to the first nine months of 2023. We discovered that most sports betting operators in the commonwealth made negligible gains or losses of under 1%.
But there were three outliers: BetMGM, ESPN Bet, and Bet365.
While ESPN Bet and Bet365 enjoyed market share gains this year, BetMGM saw its share drop more than 2%. That mirrors the drop in revenue from its regional sector that BetMGM reported in a recent second-quarter earnings call.
ESPN Bet’s market share rises after switch from Barstool
In its report on the Virginia sports betting industry, the Lottery shared data from January to June this year. When contrasted with numbers from January to September 2023, BetMGM’s losses in Virginia jump out.
There were two clear leaders in the Virginia sports betting market in 2024. FanDuel Sportsbooks Virginia owned nearly 40% of the market, while DraftKings Sportsbook Virginia enjoyed just over 27% of it. The bronze medal for market share went to BetMGM with nearly 11%. That left around 22% of the statewide market share for the remaining nine operators in Virginia.
The Lottery’s report showed that nine sportsbooks had at least 1% of statewide market share. Of those, six saw just a small change in market share year-over-year:
- FanDuel Sportsbook Virginia: -0.79%
- DraftKings Sportsbook Virginia: -0.54%
- Caesars Sportsbook Virginia: -0.66%
- BetRivers Sportsbook Virginia: +0.53%
- Hard Rock Sportsbook Virginia: +0.18%
- Fanatics Sportsbook Virginia: +0.19%
That left three remaining sportsbooks with a noticeable shift in market share from 2023 to 2024.
BetMGM Sportsbook Virginia had the biggest dip in market share. It had 12.8% of Virginia sports betting market share in 2023, but that fell to 10.7% in 2024, for a loss of 2.1%.
The operator that gained the most market share was ESPN Bet Sportsbook Virginia, which used to operate as Barstool Sportsbook. In 2023, Barstool had 2.4% of the market share. It grew to 4.5% as ESPN Bet in 2024, a gain of 2.1%.
Bet365 Sportsbook Virginia saw its market share in the commonwealth grow from 4.1% to 5.2%, an increase of 1.1%.
Interestingly, the top four operators in terms of Virginia market share all saw a decrease from 2023 to 2024, while the bottom five operators all experienced gains. Overall, about 4% of the market share shifted from the top four Virginia operators to the bottom five.
BetMGM looks to focus on iGaming
BetMGM’s loss of market share in Virginia should not be surprising. Revenue from its regional business was stagnant in the second quarter compared to 2023. It was down 4% in the first quarter of 2024.
The national trends of smaller books chiseling away at established players like BetMGM is a reason MGM is investing further into its iGaming platform.
Only a handful of states have legalized online casinos so far, but many more, including Virginia, are considering adding iGaming. To prepare for that, MGM is investing further into its online casino offerings.
MGM Resorts International CEO and President Bill Hornbuckle recently touted the company’s strides in iGaming.
“We made significant progress with our international digital strategy by adding both an in-house sports product and live dealer capabilities to our online gaming offerings. We’re excited by the progress we’re making as a company against our strategic proprieties and anticipate carrying our current momentum forward into the back half of the year.”
Even if MGM’s regional business is stagnating, the company reported a record-breaking second quarter in 2024 with $4.3 billion in consolidated net revenue thanks to its business in China and properties on the Las Vegas Strip.
