A filing with the New Jersey Department of Labor indicates that BetMGM reached this decision after evaluating its business objectives for 2025
BetMGM, a top player in the online gambling world, has said it will cut 83 jobs at its main office in Jersey City, New Jersey. The job cuts will start on May 27, as the company deals with slower growth in sports betting and tougher competition from other betting firms.
BetMGM Adjusts Strategy as Sports Betting Growth Slows and Rivals Gain Ground
A notice to the New Jersey Department of Labor shows BetMGM made this choice after looking at its business goals for 2025. The company said it was a tough call but stressed that this move aims to keep the company strong in iGaming and online sports betting for years to come.
Experts in the field point out that the sports betting market overall has slowed down. This comes after a big surge when new states made it legal and more people got interested during the COVID-19 pandemic. The American Gaming Association reported that sports betting income dropped 29% in December 2024 compared to the same time last year. Now that 39 states allow legal sports betting, the quick growth of the industry has started to slow down.
BetMGM faces tough rivalry from big players FanDuel and DraftKings. These companies have used their strong position in daily fantasy sports to gain a solid footing in sports betting. BetMGM, on the other hand, has relied on its parent company, MGM Resorts International, and its existing retail casino customers. This approach has worked better for online casino gaming than for sports betting.
Fanatics’ Rise Threatens BetMGM’s Position as Third-Largest US Sportsbook
BetMGM’s challenges are growing. Fanatics Sportsbook has spread its reach, grabbing a 6.7% market share in January 2025. Some experts think Fanatics might soon overtake BetMGM as the third-biggest sportsbook operator in the US. This could shake up the competitive scene even more.
Even with hurdles in sports betting, BetMGM stays a key player in online casinos. The company saw its online casino revenue grow by 13% in 2024, helping push total revenue up 7% to $2.1 billion. It also keeps its top spot in the iGaming market with a 22% share.
Looking ahead, BetMGM expects to bring in $2.4 billion to $2.5 billion in 2025. The company aims to make a profit after losing $244 million in EBITDA last year. Leaders feel sure that new plans, like the single account and wallet system in Nevada, will boost customer interest.The job cuts are hard on BetMGM and its workers, but experts say this often happens in gambling as companies try to stay ahead. BetMGM says it wants to help the workers who lost their jobs while keeping the company ready to grow.
