REG - Entain PLC - BetMGM FY 2025 Business Update

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RNS Number : 7203R  Entain PLC  04 February 2026

February 4, 2026

 

BETMGM FY 2025 BUSINESS UPDATE

 

Successful strategic execution delivered stronger than expected 2025
performance and EBITDA inflection

 

BetMGM LLC ("BetMGM"), a leading sports betting and iGaming operator across
North America, jointly owned by Entain plc (LSE: ENT) ("Entain") and MGM
Resorts International (NYSE: MGM) ("MGM Resorts"), is today providing an
update on its Fiscal Year 2025 ("FY 2025") performance.

 

·      FY 2025 performance exceeded expectations, reflecting benefit of
a full year of strategic initiatives driving strong underlying growth in both
iGaming and Online Sports(1)

o Net Revenue of $2.8 billion, up +33% YoY

o iGaming Net Revenue up +24% YoY and Online Sports Net Revenue up +63% YoY

o EBITDA of $220 million, up +$464 million YoY

o Cash distribution of $270 million returned to parents in Q4 2025

·      Ongoing successful execution of BetMGM's refined player
engagement strategy supported by enhanced product and user experiences driving
continued growth in player activity and retention

·      Expect FY 2026 Net Revenue between $3.1 - $3.2 billion and
Adjusted EBITDA between $300 - $350 million(1)

·      Confidence in pathway to achieving $500 million Adjusted EBITDA
in FY 2027(1)

 

Adam Greenblatt, Chief Executive Officer of BetMGM, commented:

"2025 was a record year for BetMGM, outperforming expectations with the
execution of our refined strategy coming together at scale. Q4 2025 saw record
performances, completing a year where both iGaming and Online Sports achieved
step change results, reflecting robust engagement, improved player economics,
sharper player management, and continued platform and product enhancements.
BetMGM's meaningfully improved profitability and material EBITDA generation
now sees us returning cash to our parent companies and marks a clear
inflection in our growth trajectory. Looking ahead to 2026 and beyond, the
strong underlying metrics and health of the business continue to reinforce our
confidence in our outlook as we enter the next phase of growth. As the
industry continues to evolve, we will continue to focus on winning the BetMGM
way."

 

FY 2025 Key Financial Highlights

 FY 2025 BetMGM Financial Summary(1,2,3)
 $ millions, unless otherwise noted              FY                YoY      Q4              YoY      H2              YoY

                                                                   Change                   Change                   Change
                                                 2025     2024     2025             2024    2025     2024
 Net Revenue
 iGaming                                         $1,827   $1,479   +24%     $481    $408    +18%     $936    $784    +19%
 Online Sports                                   $903     $554     +63%     $279    $144    +93%     $481    $292    +65%
                    Handle(4)                    $15,180  $13,075  +16%     $4,506  $4,361  +3%      $7,666  $7,161  +7%
                   GGR Hold %                    9.5%     8.6%     +90bps   10.2%   7.4%    +280bps  10.1%   8.3%    +180bps
                   NGR Hold %                    5.9%     4.2%     +170bps  6.2%    3.3%    +290bps  6.3%    4.1%    +220bps
 Retail / Other                                  $66      $70      (5%)     $20     $8      +161%    $30     $27     +10%
 Total Net Revenue                               $2,796   $2,102   +33%     $780    $560    +39%     $1,447  $1,104  +31%

 Contribution                                    $607     $118     +$489    $167    ($29)   +$196    $300    $52     +$248

 Net Income                                      $175     ($291)   +$465    $60     ($124)  +$183    $86     ($149)  +$236

 EBITDA                                          $220     ($244)   +$464    $71     ($106)  +$176    $112    ($122)  +$234

 Capital Expenditures                            $46      $24      +$22     $17     $10     +$7      $20     $11     +$9

 Cash Distributions                              $270     --       +$270    $270    --      +$270    $270    --      +$270

 Average Monthly Actives (thousands)(5)          979      946      +4%      1,048   1,078   (3%)     975     966     +1%

 

2025 Financial Highlights(1)

·      FY 2025 Net Revenue of $2.8 billion, up +33% YoY, with record
performance in Q4

o iGaming Net Revenue up +24% YoY underpinned by our leading iGaming offering
and enhanced player acquisition and retention approach

o Online Sports Net Revenue up +63% YoY driven by our refined player
engagement strategy, strengthened product offering, and return to normalized
sports hold levels

o Average Monthly Actives up +4%(5) YoY in line with expectations, reflecting
our refined player targeting and management capabilities

·      FY 2025 EBITDA of $220 million (up +$464 million YoY), supported
by greater than $500 million and greater than $200 million of Contribution
from iGaming and Online Sports, respectively

·      Q4 2025 Net Revenue of $780 million, up +39% YoY

o Particularly strong December with increased player engagement as well as
favorable sports results lapping a soft prior year comparator saw Q4 Online
Sports Net Revenue up +93%

·      Cash distribution of $270 million returned to parents in Q4 2025

·      Podium position with 13% GGR market share in active markets,
including iGaming (21%) and Online Sports (8%)(6,7)

 

Operational Highlights

·      Market-leading iGaming offering

o Strength of iGaming offering and improved player management driving player
acquisition and retention

(§) FY 2025 Average Monthly Actives +24% YoY(5)

(§) FY 2025 Active Player Days +14% YoY(8)

o Best-in-class and exclusive content providing players with engaging and
differentiated experiences

(§) Latest releases from exclusive game franchises, including the Wizard of
Oz, The Price Is Right and Friends

(§) Expanding live dealer strategy with more dedicated studios and content

(§) Focused cross-sell initiatives and sports-branded IP games driving Online
Sports players to iGaming offering

 

·   Transformative year for Online Sports

o Refined approach to player management and tailored marketing underpinning
improvements to player retention, economics and activity metrics

(§) FY 2025 NGR margin improvement of +170 bps YoY

(§) FY 2025 Handle per Active +26% YoY(9)

(§) FY 2025 NGR per Active +77% YoY(9)

o Significantly improved product throughout FY 2025, delivering our fastest,
smoothest and most intuitive app experience to date

(§) Enhanced market discovery and trackers for reward points

(§) Launched live SGPs and live SGP cashouts, along with Quickbet and betslip
improvements, for a richer parlay and in play experience

o Day-one OSB launch in Missouri on December 1, bringing BetMGM's footprint to
30 legalized states

 

·      Omnichannel advantage in Nevada a key differentiator in FY 2025

o Strong performance driven by best-in-market digital product offering,
improved CRM and promotional capabilities and deepest collaboration to date
with MGM Resorts

o Strategic and competitive advantage with "always on" flywheel that drives
more play, loyalty and rewards, and omnichannel products and experiences for
players both during and post Nevada visit

(§) FY 2025 Nevada Average Monthly Actives +19% YoY(5)

(§) FY 2025 Nevada Handle +26% YoY(10)

(§) FY 2025 increase in Nevada First-Time Depositors (FTDs) continuing
gameplay +2.1x YoY(11) post-visit

 

Cash to Parents

·      From Q1 2026 onwards, total cash to parents will consist of two
components: Parent Fees(12) and excess cash generated by the business

o As per the joint venture agreement that formed BetMGM, having reached
sustainable profitability, BetMGM commences payment of Parent Fees for the
provisioning of licenses and services by MGM and Entain to BetMGM(12)

o The Parent Fees are a BetMGM operating expense; therefore, in 2026 and
forward, BetMGM will report 'Adjusted EBITDA' (representing EBITDA prior to
deducting the Parent Fee), to provide clarity on the cash going to the parents
as a result of BetMGM operations, as well as comparability to reported EBITDA
in 2025 and prior periods(12)

·   Adjusted EBITDA less CapEx continues to be a reasonable proxy for total
cash to parents

 

Outlook

·    BetMGM's FY 2026 expectations of Net Revenue between $3.1 - $3.2
billion and Adjusted EBITDA between $300 - $350 million

·    Confidence in pathway to $500 million Adjusted EBITDA in FY 2027

·    BetMGM's policy of maintaining minimum unrestricted cash of $100 -
$125 million provides sufficient liquidity alongside its $150 million undrawn
revolving credit facility(13)

 

FY 2025 Results Webcast and Q&A

·    An audio webcast call with accompanying presentation slides will be
held today, Wednesday, February 4, 2026 at 9:00AM EST (2:00PM UK), with
participants able to join via webcast

o Webcast registration link: BetMGM FY 2025 webcast
(https://events.q4inc.com/attendee/178331900)

·    Following the webcast, there will be a 30 minute Q&A session for
analysts and investors

o Those wishing to ask a question should use the dial ins below and register
via the following link: Investor Registration for Q&A
(https://registrations.events/direct/Q4I9114079)

 

US Toll free        + 1 888 500 3691

US                     + 1 646 307 1951

UK Toll free         +44 800 358 0970

UK                     +44 20 3433 3846

International dial-in numbers
(https://registrations.events/directory/international/itfs.html)

Access Code: 70035

 Contacts:

 Entain plc
 Investor Relations

 investors@entaingroup.com (mailto:investors@entaingroup.com)

 Media

         media@entaingroup.com

MGM Resorts International
 Investment Community

 Sarah Rogers - Senior Vice President, Corporate Finance
              srogers@mgmresorts.com (mailto:srogers@mgmresorts.com)
 Howard Wang - Vice President, Investor Relations
                         hwang (mailto:hwang@mgmresorts.com)
 @mgmresorts.com (mailto:hwang@mgmresorts.com)

 News Media

 Brian Ahern - Executive Director, Communications
                    media@mgmresorts.com
 (mailto:media@mgmresorts.com)

 BetMGM
 Nitish Basandra - Director, Corporate Development & IR
                               ir@betmgm.com
 (mailto:ir@betmgm.com)

 Jennifer Arapoff - Director, Public Relations

Notes:

1.   Net Revenue, Contribution, EBITDA, and Adjusted EBITDA are based on how
management analyzes the performance of the business, which are not prepared in
accordance with GAAP. EBITDA reflects the impact of employee long-term
incentive compensation programs. Refer to "Non-GAAP Financial Information"
section below for additional detail.

2.   BetMGM's independent registered public accounting firm has not audited,
reviewed or performed any procedures with respect to these estimates. During
the course of the preparation of BetMGM's audited financial statements, BetMGM
and its auditors may identify items that would require material adjustments to
these estimates. As a result, these estimates constitute forward-looking
statements and, therefore, investors are cautioned that they are subject to
risks and uncertainties, including possible adjustments.

3.   Totals may not sum due to rounding.

4.   Handle reflects the total Online Sports handle (cash + bonus bets)
taken in the period.

5.   Average Monthly Actives are equal to the average of unique monthly
actives over the period, regardless of product played; monthly actives include
players that place 1+ bets within the month.

6.   BetMGM operates iGaming and Online Sports Betting in five markets and
Sports Betting only (combined online and retail) in 25 markets.

7.   Gross Gaming Revenue (GGR) market share consists of last three months
ending December, November, or October 2025 as latest reported for U.S. sports
betting markets where BetMGM was active (online and retail), last three months
ending December 2025 for U.S. iGaming markets where BetMGM was active, and
last three months ending December 2025 for the Ontario market. Internal
estimates used where operator-specific results are unavailable.

8.   Active Player Days are equal to the sum of the total player days over
the period divided by the sum of total monthly actives over the same period.

9.   Handle and NGR per Active are equal to each respective metric over the
period divided by the sum of the total monthly actives during the same period.

10. Includes both Online Sports and Retail handle for Nevada.

11. Represents the increase in Nevada digital First-Time Depositors that have
gone on to be active in another BetMGM state after visiting Nevada following
the launch of Single Account Single Wallet in August 2024.

12. Parent Fees is the operating expense to BetMGM for the provision of
certain licenses and services by affiliates of MGM and Entain. Parent Fees are
governed by agreements entered into at the time of formation of the venture,
and became effective upon BetMGM achieving long-term profitability. Reference
to parents throughout includes our MGM and Entain parent entities and their
MGM and Entain affiliates.

13. Minimum unrestricted cash balance of $100 - 125 million may be adjusted as
the business continues to scale and drives increased working capital needs.

 

Supplementary financial disclosures

BetMGM has updated its financial disclosure practices, aiming to provide
investors with more comprehensive and transparent information regarding its
financial position and operations. These enhanced disclosures will include a
more granular breakdown across different segments to provide greater insight
into performance drivers.

 

Forward-looking statements

This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, which involve
substantial risks and/or uncertainties, including those described in the MGM
Resorts International public filings with the Securities and Exchange
Commission. BetMGM has based forward-looking statements on management's
current expectations, assumptions and projections about future events and
trends. Examples of these statements include, but are not limited to, BetMGM's
expectations regarding its financial outlook (including forecasted net
revenues from operations, EBITDA, and expected distributions to Entain and MGM
Resorts), projected market share position, its expected growth in new and
existing jurisdictions, product capabilities, and achievement of key
milestones. These forward-looking statements are not guarantees of future
performance, conditions or results, and involve a number of known and unknown
risks, uncertainties, assumptions and other important factors, that could
cause actual results or outcomes to differ materially from those discussed in
the forward-looking statements. Included among the important factors that
could cause actual results to differ materially from those indicated in such
forward-looking statements are: the significant competition within the gaming
and entertainment industry; BetMGM's ability to execute on its business plan;
changes in applicable laws or regulations, particularly with respect to
iGaming and online sports betting; BetMGM's ability to manage growth and
access the capital needed to support its growth plans; and BetMGM's ability to
obtain the required licenses, permits and other approvals necessary to grow in
existing and new jurisdictions. In providing forward-looking statements,
BetMGM is not undertaking any duty or obligation to update these statements
publicly as a result of new information, future events or otherwise, except as
required by law. If BetMGM updates one or more forward-looking statements, no
inference should be drawn that it will make additional updates with respect to
those other forward-looking statements.

 

Non-GAAP Financial Information

In this press release we provide certain financial measures, including Net
Revenue, Contribution, EBITDA, and Adjusted EBITDA, from operations, which
have not been prepared in accordance with GAAP. BetMGM believes these
measures, which it uses for its own analysis of operations, are useful to
supplement the results presented in accordance with GAAP. These non-GAAP
financial measures, which may not be comparable to other similarly titled
measures presented by other companies, should not be considered a substitute
for, or superior to, the financial information prepared in accordance with
GAAP. If BetMGM presented Net Revenue from operations in accordance with GAAP,
then BetMGM would present the revenues associated with its Nevada digital and
retail sports betting operations differently, until such time as BetMGM is
licensed as a Nevada gaming operator. Currently under GAAP, its calculation of
Net Revenue would be on a basis net of operating costs, such that the GAAP
reported Net Revenue would be lower than the Net Revenue reported herein, with
net income remaining the same. We define EBITDA as net income (loss) before
the impact of interest income or expense (net), income tax provision or
benefit, and depreciation and amortization and Adjusted EBITDA is further
adjusted to add back the Parent Fees. We define Contribution as Net Revenue,
less cost of revenue (exclusive of depreciation and amortization) and
marketing acquisition spend.

 

About BetMGM

BetMGM is a market leading sports betting and gaming entertainment company,
pioneering the online gaming industry. Born out of a partnership between MGM
Resorts International (NYSE: MGM) and Entain Plc (LSE: ENT), BetMGM has
exclusive access to all of MGM Resorts' U.S. land-based and online sports
betting, major tournament poker, and online gaming businesses. Utilizing
Entain's U.S.-licensed, state-of-the-art technology, BetMGM offers sports
betting and online gaming via market-leading brands including BetMGM, Borgata
Casino, Party Casino and Party Poker. Founded in 2018, BetMGM is headquartered
in New Jersey. For more information, visit www.betmgminc.com
(http://www.betmgminc.com/)

 

About Entain plc

Entain plc (LSE: ENT) is a FTSE100 company and is one of the world's largest
sports betting and gaming groups, operating both online and in the retail
sector. The Group owns a comprehensive portfolio of established brands; Sports
brands include BetCity, bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds,
Sportingbet, Sports Interaction, STS and SuperSport; Gaming brands include
Foxy Bingo, Gala, GiocoDigitale, Ninja Casino, Optibet, Partypoker and
PartyCasino. The Group operates the TAB NZ brand as part of a long-term
strategic partnership with TAB New Zealand. The Group owns proprietary
technology across all its core product verticals and in addition to its B2C
operations, provides services to a number of third-party customers on a B2B
basis.

The Group has a 50/50 joint venture, BetMGM, a leader in sports betting and
iGaming in the US. Entain provides the technology and capabilities which power
BetMGM as well as exclusive games and products, specially developed at its
in-house gaming studios. The Group is tax resident in the UK and is the only
global operator to exclusively operate in domestically regulated or regulating
markets operating in over 30 territories.

Entain is a leader in ESG, a member of FTSE4Good, the DJSI and is AAA rated by
MSCI. For more information see the Group's website: www.entaingroup.com
(http://www.entaingroup.com)

LEI: 213800GNI3K45LQR8L28

 

About MGM Resorts International

MGM Resorts International (NYSE: MGM) is an S&P 500® global gaming and
entertainment company with national and international destinations featuring
best-in-class hotels and casinos, state-of-the-art meetings and conference
spaces, incredible live and theatrical entertainment experiences, and an
extensive array of restaurant, nightlife and retail offerings. MGM Resorts
creates immersive, iconic experiences through its suite of Las Vegas-inspired
brands. The MGM Resorts portfolio encompasses 31 unique hotel and gaming
destinations globally, including some of the most recognizable resort brands
in the industry. The Company's 50/50 venture, BetMGM LLC, offers sports
betting and online gaming in North America through market-leading brands,
including BetMGM and partypoker, and the Company's subsidiary, LV Lion Holding
Limited, offers sports betting and online gaming through market-leading brands
in several jurisdictions throughout Europe and Brazil. The Company is
currently pursuing targeted expansion in Asia through an integrated resort
development in Japan. Through its Focused on What Matters philosophy, MGM
Resorts commits to creating a more sustainable future, while striving to make
a bigger difference in the lives of its employees, guests and in the
communities where it operates. The global employees of MGM Resorts are proud
of their company for being recognized as one of FORTUNE® Magazine's World's
Most Admired Companies®. For more information, please visit us at
www.mgmresorts.com (http://www.mgmresorts.com) . Please also connect with us
@MGMResortsIntl on X as well as Facebook and Instagram.

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