A strong performance for BetMGM in North America has provided a bulwark for co-owner Entain amidst headwinds in its other core markets.
A financial update released by Entain and MGM Resorts International, the two shareholders in the North America-facing BetMGM joint venture, revealed a huge 112% increase in adjusted EBITDA in Q3 2025 from $41m to $86m (£78m).
This comes despite a YoY drop of 3% in monthly active users to 878,000, even with the knockout stages of the 2026 World Cup – an event touted as a major acquisition tool – occurring during this period.
BetMGM did affirm that this decline came “as expected”, however.
Alberta opening boosts BetMGM’s Q3
In the face of this decline in active users, the joint venture saw net revenue rise by 7% YoY to $710m, as contribution from its online sportsbook operations segment increased from $202m to $216m.
BetMGM cited “strong player engagement including a successful World Cup” as the company expanded its Canadian presence from solely Ontario to the newly-regulated Alberta province.
Year-to-date, BetMGM has seen a 5% increase in net revenue YoY from $2.01bn to $2.11bn, with online sportsbook up 4% to $647m and iGaming by 8% to $1.447bn.
Retail revenue was steady YoY in Q3 at $11m, though the company finds itself 50% down year-to-date in that department ($23m) as its brick and mortar operations took a huge hit in Q2.
“BetMGM delivered a strong Q3 as we continue to execute with discipline and generate profitable growth. Our product is stronger than it’s ever been, with significant improvements to speed, stability, and responsiveness ahead of this football season,” said Adam Greenblatt, Chief Executive Officer of BetMGM.
“We have continued to prioritize our areas of strength – particularly our iGaming franchise – and remain operationally nimble as we navigate a highly competitive environment.
“Our underlying player fundamentals remain strong, and we are generating positive cash flow and Adjusted EBITDA. These put us on track to deliver against our 2026 guidance and support our confidence in the long-term outlook of our business.”
BetMGM softens Entain’s UK & Brazil blows
For Entain, the jump in BetMGM’s revenue continues to provide a solid financial pipeline for the FTSE 250 group from the lucrative American markets at a time when a hefty new tax regime is biting into its bottom line back home in the UK.
Further compounding matters is the recently announced ban on online betting in Brazil.
Entain had previously stated that it had good growth prospects for its Sportingbet brand in Brazil, prospects that have now been dashed by President Lula da Silva and his plans to pull the plug on the barely-two-years-old regulated market.
The company is due to unveil its own Q3 financials on Thursday 23 October. The group’s share price remains in a difficult position, having fallen 42% year-to-date, despite the overall 4% rise so far today (13 October) from £4.34 to £4.46 on the LSE.
Investor confidence in MGM Resorts also remains stable, with its share price in pre-market trading on the NYSE steady at $29.90, up slightly from $29.64.
These positive results come as a welcome positive with the current backdrop, though there is still a way to go as the BetMGM seeks adjusted EBITDA of $500m “in the coming years”.
For this year, the business still expects net revenue and adjusted EBITDA to come in “at the lower end” of its respective $2.9bn-$3.1bn and $300-$350m guidance.
Article co-authored by Patrick Killeen and Ted Orme-Claye
