BetMGM is not only one of the largest sports betting and gambling operators in America - it is also well ahead of where it expected to be.
Key Takeaways
- BetMGM’s Q3 net revenue beat its 2024 total by 23%.
- The operator shared its revenue with its parent companies.
- BetMGM now expects at least $2.75 billion in net revenue in FY2025.
BetMGM picked up where it left off in Q2, according to its quarterly financial report released Thursday. Net revenue hit $667 million during Q3, representing a 23% year-over-year improvement thanks to the execution of its “strategic plan.”
The growth consisted of a 2% year-over-year increase in iGaming net revenue and a 36% year-over-year boost in online sports betting net revenue. Earnings before interest, taxes, depreciation, and amortization (EBITDA) also climbed to $41 million, dramatically outperforming the -$16 million from Q3 2024.
“The execution in operations we have described this year - improved marketing efficiency, player management, brand positioning, and product and platform improvements - all contributed to our strong revenue growth and material cash flow increase from both sides of the business,” said Adam Greenblatt, chief executive officer of BetMGM.
Crucially for BetMGM, the significant growth in online sports betting occurred largely during what is considered the “dead season” of professional and amateur sports, when many are out of season.
"Strong underlying metrics and margin outperformance during July and August support our confidence in raising guidance for full year 2025," Greenblatt said.
Beating expectations
BetMGM has already generated more than $2 billion in revenue this year. However, perhaps its most significant development was its ability to redistribute its revenue.
“We have reached yet another inflection point in our journey, returning operating cash flow back to Entain and MGM Resorts,” said Greenblatt. “My previous statements that BetMGM is healthier than it has ever been still ring loudly, and our stronger-than-expected performance through Q3 positions us well for the rest of the year and into 2026.”
The company is now prepared to hit net revenue of at least $2.75 billion and EBITDA of about $200 million during FY25. It is also prepared to allocate additional revenue to its parent companies, Entain Plc and MGM Resorts, while maintaining a minimum disposable fund of $100 million and $150 million of flexible credit.
Prepared for Q4 frenzy
Entering Q4, BetMGM’s $624 million in year-to-date online sports betting revenue is up 52% from the same time last year. That’s despite the total betting handle only increasing 22%.
The coming months are among the most important for sportsbooks. The NFL and college football are in season, the MLB playoffs and NHL are in progress, and the NBA and college basketball will make their returns in the coming weeks.
These high-traffic sports lead to larger handles and revenue totals for sportsbook companies.
