BetMGM eyes profitability as Entain keeps pace with JV upgrades

Entain Plc’s US prospects took a step forward today (28 April) as the BetMGM joint-venture reported a significant uptick in revenue during the first quarter of the year.

BetMGM’s revenue rose 27% year-over-year during the January-March 2025 trading period, rising from $489m to $657m while rising by an even more significant 154%.

The increase in EBITDA, marking a reversal of Q1 2024’s loss of $132m to a period gain of $22m, viewed as a significant development for BetMGM. Profitability has evaded the JV since its formation in 2018, as leadership underlines confidence in achieving an long standing corporate objective.

“2025 is off to an encouraging start for BetMGM as we execute our revised strategic plan,” said Adam Greenblatt, BetMGM CEO.

“The momentum we built in the second half of 2024 continued into the first quarter as we implement our powerful iGaming strategy, enabling us to grow faster than the market and at scale.”

BetMGM gaining ground in iGaming

Sports betting revenue saw the greatest growth margin in Q1, though iGaming remains the venture’s biggest revenue generator. Betting revenue was up 68% from $116m to $194m, while iGaming revenue was up 27% from $348m to $443m.

BetMGM stated that the performance of its sports betting business in particular was due to a strengthened product offering, an expansion of its net gaming revenue margin and improved player engagement – enhancements and efficiencies of Entain’s Project Romer.

It has also cited a broader market range and improved pricing as having a good impact on what it calls ‘player economics’ as well as general player activity, which saw, the number of average monthly actives for iGaming up by 43%.

“In Online Sports, we are elevating our brand and delivering improved performance, even in the face of unfavorable sports outcomes during key moments in the quarter,” Greenblatt continued.

Where next for Entain’s US ambitions?

As stated above, the US brand of BetMGM is a joint venture. The JV was launched back in 2018, not long after PASPA was repealed by the Supreme Court, and sees Entain split 50/50 control of the brand with MGM Resorts InternationalBetMGM’s revenue rose 27% year-over-year during the January-March 2025 trading period, rising from $489m to $657m.

Seven years down the line, BetMGM remains the third largest operator in the US by market share behind FanDuel and DraftKing and is active in 19 states as well as Washington DC. Its future ownership and international trajectory could change, however.

MGM has previously attempted buyouts of its UK-based partner, offering $11bn for the company back in 2021 only to see its offer rejected by Entain, which felt undervalued by the proposal.

There has been subsequent speculation about a potential second approach in the years since, but this has since calmed down. Entain’s regulatory troubles may in part explain this – namely a £585m settlement with HMRC in 2023, a £17m penalty issued by the UK Gambling Commission (UKGC) in 2021, and an ongoing AUSTRAC investigation down under.

These incidents and invitations will likely make any regulatory barriers in the way of an MGM buyout of Entain even more difficult to climb. Meanwhile, there is also the question as to whether MGM would trigger an acquisition for its JV partner facing significant regulatory challenges, which are yet to be resolved.

A more likely possibility would be MGM buying Entain’s share in BetMGM. The Las Vegas-based enterprise has already purchased Swedish-based firm LeoVegas and the US-facing assets of Tipico (Tipico Sportsbook), and has launched a BetMGM UK brand using the former’s platform – and entirely without Entain’s involvement.

What is clear is that BetMGM is making progress in the US, carving our market share, gaining revenue and reaching profitability, the latter a long-held goal for the company. Entain’s future as part of this JV, while secure for now, could be subject to further change.

Returning to BetMGM’s financials, the company states that it is now more confident in exceeding guidance despite it still being relatively early in the year. The firm now anticipates net revenue of between $2.4bn-$2.5bn, and looking even further ahead it expects $500m in EBITDA at some point over the next few years.

Greenblatt remarked: “As we approach May, we remain confident in achieving full year positive EBITDA in 2025, supported by solid underlying activity trends and our successful delivery of positive EBITDA in the first quarter.”