BetMGM boosts annual forecast on iGaming, online growth

Entain announced that BetMGM, its U.S. joint venture with MGM Resorts, has increased its fiscal year 2025 revenue forecast to at least $2.6 billion and core earnings to at least $100 million, citing strong growth in iGaming and online sports divisions. This represents an increase from the previous revenue guidance of $2.4 billion to $2.5 billion and a shift to positive EBITDA, reflecting BetMGM's expanding online presence in the growing e-betting market.

Analysis

BetMGM, the U.S. sports-betting joint venture between Entain and MGM Resorts, has significantly upgraded its financial outlook for fiscal year 2025. The venture now anticipates revenue of at least $2.6 billion, an increase from the prior forecast range of $2.4 billion to $2.5 billion. More notably, BetMGM projects core earnings of at least $100 million for FY2025, a more concrete and positive revision from its earlier guidance of merely achieving positive EBITDA. This upward revision is attributed to robust growth within its iGaming and online sports divisions, underscoring BetMGM's successful capitalization on the expanding e-betting market and its strengthening online presence. The strongly positive sentiment score of 0.8 associated with this news, specifically for MGM, and a market impact score of 0.6 highlight the favorable market reception and the material nature of this improved guidance. This development points to enhanced operational performance and market penetration by BetMGM, positively impacting the outlook for its parent companies, particularly within the key themes of corporate guidance, company fundamentals, and corporate earnings.

Key Decisions for Investors

• Investors should view the upgraded FY2025 revenue and core earnings guidance for BetMGM as a significant positive for MGM Resorts, indicating stronger than previously expected performance and profitability from its U.S. sports-betting and iGaming joint venture.
• The specific forecast of at least $100 million in core earnings, up from a general positive EBITDA expectation, suggests improving operational leverage and a clearer path to substantial profitability for BetMGM, which could enhance MGM's consolidated earnings.
• Given the strong growth in iGaming and online sports divisions cited as drivers, investors should monitor BetMGM's market share and revenue trends in these segments as continued outperformance could lead to further upward revisions and value creation for MGM.