MGM, Entain Rally as BetMGM Posts First Profitable Year
Posted on: February 4, 2026, 11:31h.
Last updated on: February 4, 2026, 11:31h.
- The gaming stocks soared Wednesday as BetMGM delivered estimate-beating 2025 results
- Net gaming surged 33% to $2.8 billion
- Company reiterates $500 million 2027 EBITDA target
Shares of MGM Resorts International (NYSE: MGM) and Entain Plc (OTC: GMVHY) rallied Wednesday as BetMGM — the online gaming entity in which the two companies each own 50% — posted estimate-beating 2025 results.
In midday trading, both gaming stocks were sporting double-digit percentage gains after BetMGM said it notched 2025 earnings before interest, taxes, depreciation, and amortization of $220 million, marking the first time it was profitable on an annual basis. Net gaming revenue jumped 33% year-over-year to $2.8 billion. That was slightly ahead of the low end of the operator’s forecast delivered last October.
2025 was a record year for BetMGM, outperforming expectations with the execution of our refined strategy coming together at scale,” said BetMGM CEO Adam Greenblatt in a statement. “Q4 2025 saw record performances, completing a year where both iGaming and Online Sports achieved step change results, reflecting robust engagement, improved player economics, sharper player management, and continued platform and product enhancements.”
In 2025, BetMGM’s iGaming net revenue increased 24% while its online sports betting net sales surged 63%. The operator has 21% market share as a percentage of gross gaming revenue (GGR) in the iGaming markets in which it’s active.
BetMGM Issues Solid 2026 Outlook
While reiterating it sees pathways to 2027 EBITDA of $500 million, BetMGM issued sturdy 2026 guidance, which likely contributed to the aforementioned upside in shares of Entain and MGM.
The operator forecast 2026 net revenue of $3.1 billion to $3.2 billion on EBITDA of $300 million to $350 million. BetMGM’s strides are important, but the strength of the operator’s 2025 numbers coupled with its impressive 2026 outlook is amplified against the backdrop of the emerging competitive threat from prediction markets such as Kalshi and Polymarket.
The press release didn’t contain commentary on prediction markets. BetMGM has previously acknowledged prediction markets, but the company doesn’t appear to be planning to go down the same road as rivals DraftKings and FanDuel with direct entries into that industry.
BetMGM is coming off a year of significant product investments, but those focused on iGaming and sports betting offerings, including live same-game parlays (SGPs) and “live SGP cashouts, along with Quickbet and betslip improvements, for a richer parlay and in play experience.”
BetMGM Returning Cash to Entain, MGM
BetMGM’s improving financial position is material to both MGM and Entain and for multiple reasons, not the least of which is it allows for BetMGM to steadily return to cash to its owners.
In the fourth quarter, the online gaming company returned $270 million to its parent firms. Now that it’s profitable, a new capita return structure is in place.
“As per the joint venture agreement that formed BetMGM, having reached sustainable profitability, BetMGM commences payment of Parent Fees for the provisioning of licenses and services by MGM and Entain to BetMGM,” according to the statement. “The Parent Fees are a BetMGM operating expense; therefore, in 2026 and forward, BetMGM will report ‘Adjusted EBITDA’ (representing EBITDA prior to deducting the Parent Fee), to provide clarity on the cash going to the parents as a result of BetMGM operations, as well as comparability to reported EBITDA in 2025 and prior periods.”
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