BetMGM Forecasts 2025 Profitability, Sees Future EBITDA of $500M

Posted on: February 4, 2025, 11:04h. 

Last updated on: February 4, 2025, 11:11h.

BetMGM said Tuesday it expects earnings before interest, taxes, depreciation, and amortization (EBITDA) to be positive this year as it looks toward reaching $500 million in EBITDA in the years ahead.

Pennsylvania sports betting sportsbook advertisement
A BetMGM Sportsbook advertisement. The operator said it expects to be EBITDA positive this year. (Image: BetMGM)

The 50/50 joint venture of MGM Resorts International (NYSE: MGM) and Entain Plc (OTC: GMVHY) added that it expects 2025 net revenue of $2.4 billion to $2.5 billion and that its iGaming segment is steadily growing, delivering impressive returns in the process. This year, EBITDA could be as high as $250 million, according to the operator.

With BetMGM’s renewed acceleration across both iGaming and Online Sports we expect to achieve positive EBITDA in 2025, and our scaled podium position in the world’s largest gaming market underpins our confidence in our pathway to $500 million EBITDA in the coming years,” said CEO Adam Greenblatt in a statement.

For BetMGM, those strides are important because internet casino is widely viewed as one of the operator’s areas of strength even though it’s ceded some market share in that space over the past several years. Online casinos are viewed as a significant long-term growth frontier for gaming companies — one offering superior margins relative to online sports betting.

iGaming Driving BetMGM Earnings Growth

Following what was called “a year of investment,” in 2024, BetMGM could wring more benefits from iGaming this year, an important factor when considering the domestic online sports wagering industry is dominated by just two companies.

BetMGM noted its online sports wagering market share in 2024 was just 8%, but its iGaming penetration was 22%. Last year, the operator’s iGaming revenue surged 13% to $1.5 billion. Currently, just seven states permit online casinos, but there’s optimism that the number could increase this year.

MGM has also made a series of bolt-on acquisitions aimed at fortifying its iGaming footprint, and there’s evidence some of those moves could pay dividends over the long term.

“Our leading iGaming business continues to grow strongly and deliver attractive returns. We also have an exciting opportunity in Online Sports, having made meaningful progress in 2024,” adds Greenblatt.

Could BetMGM Profitability Stoke a Move by MGM?

About four years ago, MGM tried to acquire Entain and gain 100% control of BetMGM — a desire maintained to this day. That offer was rejected and the two gaming companies have remained 50/50 owners of the online gaming entity.

In a report out last month, Macquarie analyst Chad Beynon mentioned that MGM could mull another offer for Entain. Due to the prospective target’s erosion in market value over the past several years, it could be compelled to come to the bargaining table at a lower price point than what the Bellagio operator floated in 2021.

There’s also been talk that MGM could simply buy Entain out of BetMGM, which would be more economical for the buyer while still satisfying some of the seller’s cash needs.

Neither company has commented on the possibility of such a transaction and the press release issued Tuesday by BetMGM didn’t address related speculation.