BetMGM will be laying off 83 employees at its headquarters in Jersey City, with the moves going into effect on May 27 according to a public notice filed with the New Jersey Department of Labor.
The move comes as BetMGM has struggled to keep up with sports betting market leaders, DraftKings and FanDuel. Not just in New Jersey, but around the US.
While its online casino business is among the best nationally, it’s clear the sports betting deficit is having an impact. On top of that, last week BetMGM urged customers to send letters to NJ lawmakers over a proposed tax hike on sports betting and online casino revenue to 25%.
BetMGM advertises over 2,500 workers across the entire company.
BetMGM a distant third in NJ sports betting
According to the American Gaming Association, sports betting gross gaming revenue (GGR) was up 25.4% in 2024 when compared to 2023 across the US. The total hit $13.71 billion in 2024.
The AGA lists New Jersey as having the third-biggest sports betting revenue in 2024 at $1.15 billion. It dropped from second in 2023 to third in 2024 thanks to Illinois sneaking past at $1.21 billion in revenue. New York held its spot at No. 1 with $2.09 billion in 2024.
Despite the fall to third, New Jersey still grew in sports betting revenue by 14.2% year-over-year.
In January, BetMGM saw its YoY revenue jump up 6.3% to $7.4 million in the month in The Garden State. However, that put it at a distant third behind FanDuel ($53.1 million) and DraftKings ($35.6 million). BetMGM is also feeling the heat from Fanatics, which was up to $6.8 million in January revenue.
In 2024 as a whole, BetMGM finished with $70.7 million in sports betting revenue, again a far cry from FanDuel ($459.4 million) and DraftKings ($289.1 million).
Similar results in other markets
In the biggest market of New York, BetMGM reported $194.8 million in online handle in January with $14.8 million in sports betting revenue.
FanDuel had nearly five times more wagers at $965.1 million in January, which led to $111.3 million in revenue. DraftKings wasn’t far behind the leader with $837.9 million in handle and $82.0 million in revenue.
BetMGM saw similar deficits in Michigan, finishing third in the handle and revenue race for 2024.
It’s $757.0 million in handle was well behind FanDuel’s $1.99 billion and DraftKings’ $1.51 billion.
When it came to revenue, BetMGM had $65.8 million compared to FanDuel’s $206.4 million, and DraftKings’ $125.5 million.
By comparison in Michigan, BetMGM had $640.1 million in online casino revenue in 2024, leading the market in the state. In NJ, BetMGM has been trailing DraftKings and Fanduel for iGaming revenue throughout 2024.
