BetMGM posted its first-ever profitable quarter since launching in 2018, reporting $22 million in Q1 EBITDA as parent companies MGM Resorts and Entain reaffirmed expectations for full-year profitability.
BetMGM net revenue climbed 34% year over year to $657 million, fueled by a 68% jump in online sports betting and a 27% increase in iGaming, according to a Monday update. Handle rose 29% to $4 billion.
The positive EBITDA came despite a $30 million drag on earnings from customer-friendly March Madness results.
“2025 is off to an encouraging start for BetMGM as we execute our revised strategic plan,” CEO Adam Greenblatt said on an analyst call. “We remain confident in achieving full-year positive EBITDA in 2025.”
One of few profitable US operators
BetMGM joins a small group of companies that have reported positive quarterly EBITDA from sports betting, which includes Caesars, DraftKings and FanDuel. The company also saw average monthly active users rise 6% to 1.07 million, driven by iGaming growth and improved player segmentation strategies on the sportsbook side.
The business contributed $133 million in iGaming profit and reported a positive contribution from sports betting, with stronger engagement metrics including a 28% rise in bets per active user and 37% growth in handle per active user. Its US market share stabilized at 22% for iGaming and 8% for online sports betting.
MGM shares were up 1.8% on Monday, while Entain jumped 10.1% to 647.6 pence in London trading.
JMP sees signs of stability for BetMGM
Citizens JMP analyst Jordan Bender wrote that BetMGM’s strong Q1 performance puts the company on track to exceed 2025 guidance, though it remains early in the year.
“We see encouraging signs the business is in a stable position, as market share has plateaued for both iGaming and sports betting,” Bender wrote. “Fixed costs were roughly flat, and variable costs only increased marginally YoY. … The end result was +$22M of EBITDA in the quarter, a $154M improvement YoY, and beating the consensus estimate of -$46M.”
The firm reiterated its full-year net revenue forecast of $2.4 billion to $2.5 billion, implying annual growth of 14% to 19%, and expects BetMGM to continue ramping toward its long-term goal of $500 million in EBITDA.
Greenblatt on prediction markets
On the call, Greenblatt also addressed the emerging market of federally regulated sports prediction platforms like Kalshi, Robinhood and Crypto.com, which allow users to trade contracts on sports outcomes in all 50 states.
“Whether it represents a risk or an opportunity within our existing online sports betting states … I think both actually,” he said.
Greenblatt downplayed the competitive threat, noting the lower-margin nature of prediction markets and the absence of high-margin features like same-game parlays.
“There isn’t any equivalent in that type of offering,” he said.
FanDuel parent Flutter made similar comments during its latest earnings call. While prediction markets are being challenged by state regulators and face legal uncertainty, some analysts suggest they could create a back door into states where traditional sportsbooks face licensing barriers.
