BetMGM raised its full year EBITDA guidance for the second time since June based on a stronger-than-expected first half.
The joint venture of Entain and MGM Resorts now forecasts $150 million in EBITDA for 2025 from at least $2.7 billion in net revenue. That update comes six weeks after BetMGM announced upgraded EBITDA guidance to at least $100 million, up from prior guidance of just being EBITDA positive by the end of the year.
The second quarter ended with net revenue up 36%, powered by a 56% increase in sports betting net revenue and 29% growth in iGaming net revenue. Quarterly EBITDA hit what CEO Adam Greenblatt called “a fantastic” $86 million, up from $8 million last year, with a positive contribution from both segments.
“BetMGM is healthier than it has ever been, a testament to the hard work of our teams and colleagues across the business,” Greenblatt said. “Our stronger than expected performance through 1H 2025 positions us well for the rest of the year, reinforcing our confidence in the future and the many opportunities ahead.”
BetMGM H1 financial highlights
The drastic improvement from 2024 can be seen across the board but perhaps most strongly on the EBITDA line. BetMGM reported $109 million for EBITDA over the first half, a stark difference from the negative $123 million reported for H1 2024.
The online casino segment continued to invest in customer acquisition to “acquire and retain a broader pool of players at attractive payback periods.” That led to average monthly actives up 38% and active monthly player days up 34% in the first half.
Sports betting, meanwhile, saw “significant growth” following the shedding of lower-value players, improved products and a “successful brand repositioning.” BetMGM is now focused on the premium mass market player base, driving more engagement and higher quality players through an improved customer management system.
Sports betting handle per active player was up 34% and net gaming revenue per active player was up 70% in the first half. Active player days grew 14% with actives betting 24% higher compared to 2024, despite average monthly actives falling 5% by design.
Parlays as a percentage of betting mix also grew nearly 5 percentage points.
Nationwide wallet paying off
BetMGM’s single wallet expanded to Nevada in August 2024 and led to substantial first-half improvements.
Monthly actives in Nevada grew 30% over the first half. That led to a four-fold increase of Nevada actives continuing to play with BetMGM once returning to their home state.
BetMGM monitoring sweeps, predictions
Greenblatt said BetMGM is staying on top of news concerning sweepstakes and prediction markets daily.
He is “delighted” to see states taking action on sweepstakes operators, saying his message to lawmakers is that the “good guys aren’t benefitting” from sweeps.
The BetMGM team is also monitoring every court case and update in terms of prediction markets, Greenblatt said. He stressed BetMGM would not be a first mover in the segment, but he noted they would not be caught “flat-footed” should sports prediction markets stick around.
Greenblatt also noted that prediction markets are driven by liquidity, which means the incumbent prediction market operators are more likely to have an outsized market share than sports betting operators entering the business.
Illinois is surcharge free but could change
BetMGM has opted not to pass on the Illinois per-bet tax to its customers, but that is not guaranteed to be the case in the future.
“BetMGM is a surcharge-free zone – for now,” Greenblatt said.
The sportsbook is requiring a minimum bet of $2.50, though all of that amount goes toward the bettor’s stake, unlike the surcharge policies enacted by DraftKings, FanDuel and Fanatics.
This could serve as a competitive opportunity in the short term in Illinois, Greenblatt said. How the minimum bet covers the increased taxes will dictate whether that policy changes in the future or not.
