BetMGM Expects Revenue Surge, Aiming for a Promising FY 2025
In an encouraging forecast, BetMGM anticipates its full-year net gaming revenue for fiscal year 2025 to hit a minimum of $2.6 billion, alongside an adjusted EBITDA target of $100 million.
The latest projections reflect an upward revision in revenue guidance by $0.2 billion following a notable 34% increase in net revenue for the first quarter. This growth is largely attributed to heightened activity in both online gaming and sports betting sectors.
Originally estimated between $2.4 billion and $2.5 billion, the updated revenue forecast signals growing confidence in BetMGM’s trajectory. An investor update from Entain revealed that the positive performance from Q1 has continued into Q2, solidifying the outlook for the year.
A key factor driving this revenue growth has been a significant rise in sports betting activity, with increased player engagement extending into the second quarter. Furthermore, Entain projects that the full-year adjusted EBITDA will exceed prior expectations, now estimated at a minimum of $100 million. This marks a substantial turnaround from a negative EBITDA of $244 million reported in 2024.
The improved figures highlight a remarkable decrease in losses—down 29% from the previous year’s $62 million deficit. According to Entain, online sports betting will act as the primary catalyst for the company’s growth this year, while iGaming is also anticipated to contribute robustly.
“BetMGM is excited about the considerable opportunities ahead,” stated Entain. The company believes that strengthened operational strategies and ongoing momentum position it favorably for future growth, aiming for an ambitious target of $500 million in EBITDA over the coming years.
Navigating Challenges in Q1
Despite encountering several macroeconomic challenges, BetMGM reported notable growth in Q1. The brand’s financial results show a net revenue of $443 million for the quarter ending March 31—a year-on-year increase of 34%. This translated to an adjusted EBITDA of $22 million, a remarkable improvement from a loss just a year prior.
A breakdown of the revenue growth indicates that online sports betting surged by 68%, while iGaming revenues experienced a 27% increase. With Entain expecting these positive trends to persist throughout Q2 and beyond, the heightened revenue guidance appears well-founded.
Additionally, BetMGM has successfully secured market access in Missouri, positioning itself as one of the first to gain approval ahead of the state’s anticipated market opening in December. This expansion reflects the brand’s strategy to enhance its footprint in the US.
In a broader context, Entain recorded a 9% increase in net gaming revenue during the first quarter. Notably, when excluding BetMGM from the overall figures, the group’s revenue growth stands at only 6%.
Leadership within Entain has transitioned as well, with Stella David officially appointed as CEO after serving in an interim capacity following Gavin Isaacs’ departure in February.
A comprehensive report detailing BetMGM’s Q2 performance and an updated H1 overview will be published on July 29, promising further insights into the company’s evolving landscape.