BetMGM hits $2 billion revenue, forecasts positive EBITDA 2025

BetMGM, a strategic partnership between Entain and MGM Resorts, has achieved a remarkable milestone by surpassing the $2 billion revenue mark in its full-year results for 2024, with projections indicating a return to positive EBITDA in 2025.

For the fiscal year ending December 31, 2024, BetMGM reported total revenue of $2.1 billion (£1.69 billion/€2.03 billion), reflecting a 7% increase compared to the previous year. This growth underscores BetMGM’s competitive presence in the rapidly evolving gambling landscape.

In the recently published Q4 and FY earnings report dated February 4, 2025, the group reported a negative EBITDA of $244 million, which marked a significant increase in losses from the previous year’s $62 million. These losses were attributed to what the company referred to as a “year of investment,” a strategic decision positioned to bolster future growth despite the immediate financial setbacks.

Notably, BetMGM’s iGaming net revenue saw an impressive 13% rise, totaling $1.48 billion. Additionally, the online sports betting segment contributed a further $554 million, a 4% uptick. Increased engagement and product enhancements were pivotal in achieving this growth, with a betting handle of $13.1 billion—up 20%—and a hold percentage of 8.6%, reflecting a modest 0.9% increase over the year.

However, the overall betting revenue was adversely affected by favorable outcomes in competitive sports, particularly during the NFL season in December. BetMGM noted a $50 million negative impact attributed to these results, a challenge that has also been echoed by industry peers such as Flutter and DraftKings in recent months. Flutter issued a profit warning in the US in January, while DraftKings revised its full-year revenue and earnings forecasts downward in November.

Despite facing these headwinds, BetMGM recorded a 14% increase in average monthly active users, reaching 946,000 in 2024. This growth is largely credited to proactive player acquisition strategies that the company implemented throughout the year.

In a bid to expand its footprint, BetMGM launched its sportsbook in two new states in 2024—North Carolina and Washington, D.C.—illustrating its commitment to broadening its market presence.

Regarding market share, BetMGM maintained a commendable 14% gross gaming revenue (GGR) share across its active markets. Breaking this down further, the company claimed a 22% share of the iGaming market and an 8% share in the sports betting sector.

Greenblatt Highlights 2024 as a “Year of Investment” for BetMGM

In reflecting on the full-year results, BetMGM CEO Adam Greenblatt emphasized the strategic nature of the past year: “2024 was a year of investment and momentum rebuilding for BetMGM. Our refined strategy positioned us to exit the year with encouraging trends, particularly regarding our EBITDA performance for Q4, which is trending towards breakeven on a normalized basis.”

Greenblatt also pointed out the robust growth in their leading iGaming segment, asserting, “We are optimistic about our opportunities in online sports, having made significant strides in 2024.”

BetMGM is currently in a strong financial position, maintaining a $150 million revolving credit facility that remains untapped, while anticipating no additional capital needs from its parent companies moving forward.

Positive EBITDA Expected in 2025

Looking toward the future, the company has conveyed a positive outlook for 2025, anticipating a $250 million increase in EBITDA year-on-year, which should bring the joint venture into profitability.

BetMGM’s projections for 2025 estimate net revenue between $2.4 billion and $2.5 billion. The company has fortified its confidence in achieving this target, envisioning a pathway to an EBITDA of $500 million in future financial disclosures—a goal they aim to realize by 2026, as articulated in a prior investor presentation.

Commenting on the encouraging results, CEO Greenblatt stated, “The improvements in our product offering, coupled with rapid growth and enhanced operational efficiencies, inform our expectation for online sports betting to be contribution positive for FY 2025. As we accelerate our efforts in iGaming and online sports, we are on track to achieve positive EBITDA by 2025, reinforcing our strong position in the world’s largest gaming market and instilling confidence in our trajectory towards $500 million EBITDA in the coming years.”