BetMGM Boosts 2025 Projections, Anticipates EBITDA of $100 Million from $2.6 Billion in Revenue
June 16, 2025: 10:07am 🕛
Last updated: 10:48am ⏰
Todd Shriber @etfgodfather 👨💼 Read More Financial Gaming Business Mergers and Acquisitions
BetMGM puts the pedal to the metal: smashing earlier forecasts* Crossing the finish line with a whopping $500M EBITDA* Strong iGaming and sports betting momentum propels the giant
BetMGM, the potent 50/50 joint venture between Entain (OTC: GMVHY) and MGM Resorts International (NYSE: MGM), has shattered expectations, skyrocketing its 2025 financial guidance. BetMGM is now aiming to reap $100M in EBITDA on $2.6B in revenue — a monumental improvement over initial projections of simply reaching EBITDA positivity on sales of $2.4B to $2.5B.
Exuding excitement about the opportunities ahead, BetMGM proclaimed, "Our strengthened business, shifted strategy, and performance momentum give us a confidence-boosting vote of confidence in our future growth prospects and our journey towards $500M EBITDA in the coming years.” An official statement from the gaming titan.
Shares of MGM and Entain climbed by 8.67% and 13.45% respectively in after-market trading, reflecting the blockbuster news. BetMGM further announced that its current quarter performance is following the impressive 34% YoY gains it scored in Q1.
Entain's Bargain: Dirt-Cheap Relative to BetMGM Performance
In February, BetMGM predicted a 2025 net revenue of $2.4B to $2.5B. At that time, the operator attributed its first-quarter success to improved user engagement, snazzy product enhancements, and an emphasis on premium-mass bettors.
DraftKings (NASDAQ: DKNG) and Flutter Entertainment's (NYSE: FLUT) FanDuel are the reigning kings of the U.S. online sports betting scene. Despite BetMGM's solid footing in the industry and its dominance in iGaming, some analysts argue that shares of Entain are a steal.
"Entain is trading at a wallet-friendly 8.4x EV/EBITDA for FY25E. The ongoing BetMGM accolades from this update and the Late April update seem to be brushed off by Entain's valuation which pegs little value to Entain's BetMGM stake," asserts James Wheatcroft of Jefferies. "A sum of the parts implies £13.00, (25% discount to the DKNG's multiple for ENT's 50% BetMGM stake) and a c11x recent regulated market transaction multiple for the Online core."
BetMGM anticipates online sports betting and iGaming to deliver positive earnings this year. The operator plans to disclose its H1 2025 results on July 29th.
The BetMGM Juggernaut: A Challenge for Entain to Sell?
Strong revenue and earnings at BetMGM, combined with that success not being mirrored in Entain's share price, as Wheatcroft suggests, could drive Entain to maintain its stake in the joint venture rather than divesting from it.
Back in January 2021, Bloomberg Intelligence estimated Entain's stake in BetMGM to be worth between $4.2B and $5.6B. Entain's current market cap stands at $6.52B, suggesting that its stock price isn't fully embracing the positives at the online gaming unit.
MGM has made it clear that it yearns to own all of BetMGM. However, MGM hasn't revisited the negotiating table after its original $11.06B buyout offer for Entain in 2021 was rejected as insufficient and the talks were subsequently upended by DraftKings' significantly higher bid. Four years later, analysts are still speculating about MGM's potential return with a new offer for Entain or its half of BetMGM, but no promises yet. 🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥
- The financial success of BetMGM, a joint venture between Entain and MGM Resorts International, has far exceeded expectations, with a projected EBITDA of $100M on $2.6B in revenue for 2025.
- Shares of both MGM and Entain have surged in response to BetMGM's impressive performance, reflecting the blockbuster news.
- Analysts argue that shares of Entain, despite BetMGM's solid performance in the iGaming and sports betting industries, are still a steal, with Entain trading at a lower EV/EBITDA ratio compared to BetMGM's performance.
- With BetMGM's strong revenue and earnings, and Entain's share price not fully reflecting the positives at the online gaming unit, it could be strategically advantageous for Entain to maintain its stake in the joint venture rather than selling it.
