‘Strong Momentum’ For BetMGM Leads To 2025 Guidance Increase
BetMGM is up big in 2025, and its newest market update reflects those gains.
After announcing expectations to be EBITDA positive in 2025, joint owners Entain and MGM Resorts raised BetMGM’s 2025 guidance and expect at least $100 million in EBITDA for the year.
The announcement comes as BetMGM’s Q2 net revenue through June 13 aligns with Q1’s 34% yearly net revenue growth. Handle growth in online casinos and sports betting propelled the increased revenue.
Based on the most recent data, the company now expects $2.6 billion in annual net revenue, an increase from its previous guidance, which ranged between $2.4 billion and $2.5 billion.
Q2 results fuel guidance update
According to the guidance update, BetMGM’s revenue through June 13 is “broadly consistent” with its Q1 results.
BetMGM reported $657 million in net revenue in Q1, up 34% year over year, and $22 million in EBITDA after reporting a $132 million loss in Q1 2023. CEO Adam Greenblatt called the results an “encouraging start” during the Q1 earnings call, but the company did not raise guidance then.
BetMGM was one of four profitable online casino operators in Q1, alongside Caesars, DraftKings and FanDuel. With similar results through mid-June, the company will announce its profitability in back-to-back quarters on its July 29 earnings call.
Other metrics from Q1:
- Active monthly users grew 6% to 1.07 million, with a 28% rise in bets per active user and a 37% higher handle per active user.
- iGaming profit totaled $133 million.
- iGaming average monthly actives increased by 43% and active player days by 39%.
A $500 million EBITDA goal
Even with its growth to date, BetMGM will need to outperform its Q1 $22 million EBITDA to meet its new $100 million guidance. Online casinos experience far less seasonality, and the growth metrics in that vertical should enable BetMGM’s continued upward trajectory.
However, BetMGM only operates online casinos in four states: Michigan, New Jersey, Pennsylvania and West Virginia. It has online sportsbooks in 22 states, and sports betting revenue will grow significantly once football season arrives, particularly in the fourth quarter.
That said, the company is finally becoming profitable. Long term, BetMGM hopes to quintuple its 2025 guidance and expressed excitement at significant growth opportunities to reach $500 million EBITDA in future years.
