Entain plc, the renowned global sports betting and gaming company, has raised its full-year 2025 revenue forecast for its joint venture with MGM Resorts International, BetMGM. This update comes as a result of continued positive momentum in both online sports betting and iGaming sectors, particularly in the United States.

BetMGM’s continued strength and new growth pathway:

As stated in Entain’s press release, the company now projects that BetMGM’s net revenue will exceed $2.6 billion for FY 2025, a significant increase from its previous guidance of $2.4 billion to $2.5 billion. This upward revision reflects the robust growth experienced in the second quarter of 2025, driven by higher betting activity and a steady increase in user engagement across both iGaming and online sports platforms.

Entain’s update underscores the ongoing strength in BetMGM’s performance, following a solid 34% year-over-year growth in net revenue recorded during the first quarter of 2025. The company remains confident in the venture’s trajectory, with expectations that the positive trend will continue throughout the remainder of the year.

“BetMGM remains excited about the significant opportunities ahead. Its strengthened business, revised strategic approach, and performance momentum further reinforce its confidence in future growth prospects,” said an Entain spokesperson. “The path to $500 million EBITDA in the coming years is increasingly clear.”

BetMGM, a joint venture between Entain and MGM Resorts, has benefited from the rapid expansion of online gambling in the US. Since its establishment in 2018, following the repeal of PASPA, BetMGM has cemented its position as one of the leading sports betting and iGaming operators in North America. As of the first quarter of 2025, the company reached EBITDA-positive status, reporting earnings of $22 million despite challenges like a $30 million impact from the “March Madness” college basketball tournament.

The new revenue forecast and EBITDA guidance reflect BetMGM’s enhanced operational framework and its ability to generate consistent returns despite early-stage losses in its pursuit of market dominance. In the previous year, the company reported a turnover of $2.1 billion, marking a 7% increase, though its losses grew significantly due to continued investment in customer acquisition.

Entain’s updated guidance emphasizes the venture’s successful strategies to expand its customer base and drive higher betting volumes, which have been crucial to its overall growth trajectory.

A positive outlook for BetMGM amid industry challenges:

Entain’s optimistic outlook for BetMGM stands in stark contrast to the challenges it has faced in recent years. The company has had to contend with high promotional expenses aimed at attracting new customers, which initially weighed heavily on profitability. The $50 million negative impact from highly favorable sports results for customers during December 2024 exemplified the volatility in the industry. However, BetMGM has now turned the corner, consistently showing resilience and financial strength as it moves into FY 2025.

With expectations for continued growth, Entain is betting on BetMGM’s ability to expand its market share further, capitalizing on the increasing legalization of sports betting across the US. This optimism comes as Entain continues its efforts to grow its presence beyond its home market in the UK, focusing heavily on the US as its largest growth opportunity.

“Entain’s gamble to conquer overseas markets, especially the US, is beginning to pay off,” said Richard Hunter, head of markets at Interactive Investor. “The potential of BetMGM is becoming clear, and with it, a pathway to significant earnings.”

The positive update also led to a surge in Entain’s stock value, which rose by over 8% on the announcement, making it the best-performing stock in the FTSE 100 that day. This stock performance marks a notable recovery for the company, which has faced regulatory challenges and legal disputes in recent years.

The performance update comes amid leadership changes at Entain. The company recently appointed Stella David as its permanent CEO, following a period of executive instability. David, who previously held leadership roles at William Grant & Sons and Clarks, brings significant experience in international business to Entain. She was appointed on an interim basis after Gavin Isaacs resigned just five months into his tenure.