BetMGM, the 50/50 joint venture between MGM Resorts International and Entain, posted a record fiscal‑year 2025 with net revenue of $2.796 billion, a 33 % year‑over‑year increase, and a turnaround to $220 million in EBITDA from a $244 million loss in FY 2024. The profit reflects a 24 % rise in iGaming revenue to $1.84 billion and a 63 % jump in online sports‑betting revenue to $917 million, driven by stronger player engagement and higher‑margin sports markets.
The company’s gross‑gaming‑revenue hold improved by 280 basis points in the fourth quarter, and the net‑gaming‑revenue margin for the full year rose 170 basis points. Management attributes the hold‑margin expansion to favorable sports results in December, tighter player management, and a shift toward higher‑value, lower‑cost players, which together reduced the cost of player acquisition and improved profitability.
BetMGM returned $270 million to its parent companies—$135 million to MGM Resorts and $135 million to Entain—marking the first time the joint venture has generated sufficient cash flow to distribute capital. The distribution signals a transition from an investment phase to a sustainable cash‑generating business and provides a tangible return to shareholders.
Guidance for FY 2026 projects net revenue of $3.1 billion to $3.2 billion and adjusted EBITDA of $300 million to $350 million, while the company reiterated its FY 2027 EBITDA target of $500 million. The upward revision reflects confidence in continued demand growth, margin expansion, and the ability to scale operations efficiently.
CEO Adam Greenblatt said the year “outperformed expectations with the execution of our refined strategy coming together at scale.” He added that the “meaningfully improved profitability and material EBITDA generation now sees us returning cash to our parent companies and marks a clear inflection in our growth trajectory.”
Entain shares rose 13 % in London and MGM Resorts International shares gained roughly 12 % in New York following the results, underscoring investor enthusiasm for the profitability milestone and the cash return. The positive market reaction was driven by the profitability turnaround, the sizable cash distribution, and the optimistic guidance for the next two fiscal years.
Headwinds remain in the form of intense competition across the U.S. online‑gambling market, but BetMGM’s 13 % gross‑gaming‑revenue share—21 % in iGaming and 8 % in sports betting—positions it well. The joint venture’s omnichannel advantage in Nevada and its focus on high‑value players provide tailwinds that support continued growth.
BetMGM’s transition to profitability marks a pivotal inflection point, transforming the joint venture from a growth‑phase investment into a cash‑generating engine that can fund future expansion and deliver shareholder value. The results, guidance, and strategic focus suggest a robust trajectory for the coming years.
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