BetMGM increases FY revenue forecast on positive H1 betting performance
BetMGM has increased its 2025 full-year revenue guidance by up to $0.2 billion following a 34% net revenue uptick in Q1, driven by increased activity across both iGaming and betting.
The operator’s new revenue guidance is expected to be at least $2.6 billion, up from a range of $2.4 billion to $2.5 billion.
According to an Entain investor update Monday morning, positive momentum reported in Q1 has continued into the second quarter, resulting in increased confidence in the operator’s overall performance for the year.
Increased revenue in Q1 was primarily due to increased sports handle, with higher player spending continuing into Q2.
Full-year adjusted EBITDA will also come in higher than previously expected, estimated to come in at at least $100 million. Its previous forecast was for BetMGM to be “EBITDA positive”, after posting a negative EBITDA of $244 million in its 2024 earnings.
This marked a 29% increased drop on its EBITDA losses of $62 million the previous year.
Entain added that online sports betting would be the primary driver of growth throughout the year. However, it added that iGaming will also make a “strong contribution” to growth.
“BetMGM remains excited about the significant opportunities ahead,” Entain said. “Its strengthened business, revised strategic approach and performance momentum, further reinforce its confidence in future growth prospects and pathway to $500 million EBITDA in the coming years.”
BetMGM sees off Q1 macroeconomic challenges
When BetMGM published its Q1 results in April, the brand reported growth despite what it described as “challenging macroeconomic headwinds”.
For the three-month period to 31 March, BetMGM generated net revenue of $443 million, up 34% year-on-year. It translated to adjusted EBITDA of $22 million, an improvement of over $150 million from a loss in Q1 2024.
Detailing this growth, BetMGM said online sports betting revenue was 68% higher during the quarter. This was in addition to a 27% rise in Q1 igaming revenue. With Entain set on these trends continuing in the rest of Q2 and beyond, it is easy to see why guidance has been increased.
There was also news of BetMGM securing market access in yet another US state. The brand became one of the first to gain approval in Missouri, ahead of the state’s market opening in December. This covers online sports betting activities in the state.
As for Entain, the group reported 9% rise in net gaming revenue during the first quarter. In terms of BetMGM’s impact on this, when excluding the brand from the figures, revenue was only 6% higher year-on-year.
The group is now under permanent new leadership, with Stella David having become CEO on a full-time basis. She had been serving as interim CEO since Gavin Isaacs stepped down in February.
Entain expects to publish a more in-depth report on BetMGM’s Q2 performance, as well as an H1 update, on 29 July.