BetMGM raised its expectations for 2025 once again and is now eying at least $200 million paid out to its parent companies this year.
Momentum from the first half continued into the third quarter, CEO Adam Greenblatt said on the company’s Q3 earnings release Tuesday. Despite unfriendly sports betting results in September, BetMGM benefitted from “strong underlying metrics and margin outperformance” in July and August.
“The execution in operations we have described this year – improved marketing efficiency, player management, brand positioning, and product and platform improvements – all contributed to our strong revenue growth and material cash flow increase from both sides of the business,” Greenblatt said. ” … My previous statements that BetMGM is healthier than it has ever been still ring loudly, and our stronger than expected performance through Q3 positions us well for the rest of the year and into 2026.”
The joint venture’s two parents, MGM Resorts and Entain, both saw their stocks rise Tuesday on the news. MGM closed up 2.8% to $32.45 while Entain, which reports results Wednesday, closed up 1.75% to 839.40 pence.
BetMGM guidance raised again
Management has raised its 2025 forecasts for the third time this year and now expects at least $200 million in EBITDA from $2.75 billion in net revenue. BetMGM reported a loss of $244 million in EBITDA last year. The revenue forecast suggests 30.8% growth over 2024.
BetMGM began the year with the expectation that the company would be EBITDA positive by the end of the year. That forecast first rose to at least $100 million in a June market update as “strong momentum” from the first quarter carried into the second.
In July, BetMGM raised that guidance again to $150 million in 2025 EBITDA based on outperformance in the first half.
The joint venture says at least $200 million will be returned to its parents in 2025, keeping around $100 million in cash. That cash and an undrawn $150 million revolving credit facility will be “ample liquidity” to operate the business, according to the release.
Sports betting, iGaming both grow
BetMGM reported $667 million of net revenue for the third quarter. The 23% growth over last year was shared by both online gaming segments.
Net revenue for iGaming rose 21% to $454 million during the quarter, good for 68% of total net revenue. Its online casino platform is still seeing “strong growth” in not just player acquisition but retention and activity as well. Average monthly actives grew 2`1%.
Sports betting jumped 36% to $202 million, outpacing handle growth of 13% to $3.159 billion. That growth disparity is from the favorable sports betting results in July and August as net hold grew 1.1 percentage points to 6.4%. Gross hold was up 0.2 percentage points to 10.1%.
EBITDA was $41 million for the quarter compared to a loss of $16 million last year. For the first three quarters, BetMGM’s EBITDA of $150 million is a nearly $300 million improvement from its loss of $139 million last year.
