BetMGM boosts 2025 projections, anticipates EBITDA of $100 million from $2.6 billion in revenue
Updated Article:
Posted on: June 16, 2025, 02:07h.
Last updated on: June 16, 2025, 02:48h.
Todd Shriber (@etfgodfather) Read More Financial Gaming Business Mergers and Acquisitions
BetMGM's Guidance Shines Brighter Than Previous ForecastsUnprecedented momentum across iGaming and sports bettingFirst-quarter strength propels current success
After announcing unprecedented strength in its iGaming and sports wagering operations, BetMGM has raised its 2025 financial guidance. Initially expecting a mere positive EBITDA on sales of $2.4 billion to $2.5 billion, the company now anticipates earning $100 million in EBITDA on revenue of $2.6 billion[1]. This robust projection places the company right on track to hit its goal of $500 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) in the coming years.
Exuding excitement about the significant opportunities ahead, BetMGM emphasized its revised strategic approach, performances, and growth prospects[1]. The gaming company's statement highlights its confidence in the pathway to achieving a $500 million EBITDA in the near future.
In the wake of this positive news, shares of MGM Resorts International surged 8.67%[5], while Entain saw a 13.45% increase[4][5]. BetMGM added that its quarter-to-date trading mirrors the 34% year-over-year growth witnessed in the first three months of 2025[4].
Entain's Stock Shines on the Inside, But Investors Need to Dig Deeper
In February, BetMGM had forecast 2025 net revenue of $2.4 billion to $2.5 billion[2]. During that time, the operator celebrated its Q1 sportsbook numbers, which benefited from improved engagement, product enhancements, and a focus on premium-mass bettors[2].
DraftKings and Flutter Entertainment's FanDuel continue to dominate the US online sports betting industry. However, BetMGM, one of the few other ventures to gain decent market share, stands out as a formidable force, particularly in the iGaming segment[3]. Even with these impressive feats and an enticing 2025 outlook, some analysts see Entain's shares as undervalued[2].
James Wheatcroft of Jefferies observes, "Entain trades on 8.4x EV/EBITDA for FY25E. Ongoing positive BetMGM commentary from today's update and the late April update is at odds with Entain's valuation that appears to attach little value to Entain's BetMGM stake." Wheatcroft suggests a sum of the parts approach, which implies a £13.00 per share price. This valuation represents a 25% discount compared to the DKNG's multiple for Entain's 50% stake in BetMGM[2]. The online gaming core, meanwhile, may warrant a 11x recent regulated market transaction multiple[2].
The Future of BetMGM looks Gorgeous, and Entain Might Just Decide to Stay
The improved performance at BetMGM, coupled with the share price not fully reflecting these positives, as Wheatcroft suggests, might motivate Entain to remain involved in the joint venture rather than exit it[3].
Bloomberg Intelligence has previously estimated that Entain's 50% stake in BetMGM is worth $4.2 billion to $5.6 billion[3]. The company's current market capitalization stands at $6.52 billion[3], lending credence to the notion that the stock price does not reflect the full potential of BetMGM's growth.
MGM management has made no secret of their desire to acquire full control of BetMGM, but they have yet to return to the negotiating table after offering $11.06 billion for the entirety of Entain back in 2021. That bid was subsequently rejected as too low, with the negotiation process thrown into chaos when DraftKings substantially increased MGM's bid[3]. In the years since, analysts have speculated that MGM would return with another offer for Entain or its half of BetMGM, but thus far, that has yet to happen.
[1] https://news.yahoo.com/betmgs-2025-financial-guidance-now-151809266.html[2] https://finance.yahoo.com/news/betmgm-boosts-2025-forecasts-keeps-011100656.html[3] https://www.bloombergquint.com/onweb/news/entain-half-ownership-of-betmgm-esports-arm-leaves-a-solid-footing[4] https://www.bloomberg.com/markets/stocks/investment-research/entain-otcmkts-gmvyhy[5] https://finance.yahoo.com/quote/MGM/news?p=MGM+News&.tsrc=fin-srch
- The unprecedented strength in iGaming and sports betting operations, as seen at BetMGM, has led to a revised financial guidance, suggesting a potential EBITDA of $100 million on revenue of $2.6 billion.
- The revised strategy and growth prospects of BetMGM have instilled confidence in the company's ability to reach a $500 million EBITDA goal in the near future.
- Despite DraftKings and Flutter Entertainment's FanDuel dominating the US online sports betting industry, BetMGM, particularly in the iGaming segment, stands out as a formidable force.
- Entain's shares may be undervalued, according to some analysts, due to the discount compared to the DKNG's multiple for Entain's 50% stake in BetMGM, and the stock price not fully reflecting the potential of BetMGM's growth.
