BetMGM Ups 2025 Guidance After Strong 1H, Sees $2.7 Billion in Sales

BetMGM has increased its financial outlook for 2025 once more.  The operator announced on Tuesday that it anticipates generating at least $2.7 billion in revenue this year from EBITDA (profits before interest, taxes, depreciation, and amortization) of at least $150 million.

The business, a 50/50 joint venture between Entain (OTC: GMVHY) and MGM Resorts International (NYSE: MGM), increased its 2025 outlook after a robust first half of the year that saw a 35% spike in the top line and $232 million in EBITDA growth during the same period last year.

"BetMGM has seen a strong first half of the year, delivering significant revenue and EBITDA growth that is underpinned by the ongoing execution of our strategic plan,” said CEO Adam Greenblatt in a press release. “The momentum we have built since the second half of 2024 accelerated through the first half of 2025.”

One of BetMGM's strengths, according to Greenblatt, is iGaming, which "continues to deliver new records."  These developments are significant for BetMGM since, although losing some market share in the last few years, online casinos are still seen as one of the operator's strong points.  With higher margins than online sports betting, online casinos are seen as a major long-term growth area for gaming enterprises.

Strong Q2 Contributes to Increased  BetMGM future The Super Bowl's customer-friendly nature presented difficulties for online sportsbook operators throughout the first quarter, but the April–June timeframe was more favorable to BetMGM, which greatly improved the operator's financial future.

BetMGM reported $692 million in revenue for the June quarter, a 36% increase from the previous year.  EBITDA increased from $8 million to $86 million throughout that time.  Revenue in the iGaming area increased 29% to $449 million, indicating that it was a source of strength.

“The company achieved H1 2025 EBITDA of USD109M, a USD232M improvement from the USD123M loss in the prior year,” said CFRA Research analyst Danny Yeo. “We think the sustained EBITDA expansion with a balanced contribution from both segments reinforces the credibility of the upward guidance revision and will boost confidence in the joint venture’s growth trajectory.”

Although no operator has been able to break the DraftKings/FanDuel duopoly, BetMGM is on the podium for digital gambling with a 14% market share, followed by iGaming (22%), and Online Sports (8%).

Guidance from BetMGM Far Exceeds Prior Estimates

The updated sales forecasts from BetMGM are significantly higher than the previous estimates.  BetMGM projected net revenue of $2.4 billion to $2.5 billion for 2025 in February.  At the time, the operator reported that increased interaction, product improvements, and a focus on what it called premium-mass bettors helped boost its first-quarter sportsbook revenues.

The operator confirmed that the second quarter was a major factor in the increased predictions when it stated two months later that it anticipated 2025 revenue of $2.6 billion on EBITDA of $100 million.  Regarding stock-level ramifications, several experts claim that Entain's (OTC: GMVHY) share price does not reflect BetMGM's strength.

“At 10x EV/EBITDA for FY25E, we see zero value for BetMGM priced into Entain,” observes Jeffries analyst James Wheatcroft. “Our sum of the parts implies £14.00 (+40% potential upside), using a 25% discount to the DraftKings multiple to value ENT’s BetMGM stake and 11x for the Online core (based on recent transaction).”