BetMGM has kicked off 2025 with an encouraging performance, riding the wave of strong momentum from the latter half of 2024.
With significant growth spurred by its leading iGaming offerings, an enhanced sports product, and refined player management strategies, the company is well on track to achieve its ambitious financial goals for the year.
Online gambling (also known as iGaming or iGambling) is any kind of gambling conducted on the Internet. This includes virtual poker, casinos, and sports betting.
Impressive Financial Growth in First Quarter for BetMGM
In the first quarter of 2025, BetMGM reported a substantial 34% year-over-year increase in net revenue, reaching $657 million. This growth was driven by a powerful combination of a 27% increase in iGaming net revenue and an impressive 68% rise in online sports net revenue.
These results reflect strong player engagement and an improved product offering across both sectors.
The company's handle grew by 29% year-over-year, complemented by a noteworthy enhancement in the Net Gaming Revenue (NGR) margin of 110 basis points.
Additionally, the average monthly actives rose by 6%, showcasing a strong increase in iGaming players, albeit partly balanced by a refined approach to online sports betting (OSB) player segmentation and management.
BetMGM Also Experienced a Positive EBITDA in Q1
BetMGM achieved a positive EBITDA of $22 million in the first quarter, marking a remarkable $154 million improvement compared to the same period last year. This achievement includes contributions of $133 million from iGaming, as well as a positive contribution from online sports. Notably, this performance was bolstered by one-time accounting items, which offset some customer-friendly sports results.
The company has maintained stabilization of its Gross Gaming Revenue (GGR) market share in active markets, claiming 22% in iGaming and 8% in online sports, thereby cementing its podium position in the industry. Additionally, BetMGM's $150 million revolving credit facility remains undrawn, highlighting robust financial management.
Strength in Operations and Player Engagement
BetMGM's operational strategies in the first quarter of 2025 have led to a notable increase in average monthly actives, which surged by 43%. This growth is attributed to the company's market-leading iGaming offering and focused marketing investments, resulting in a 39% year-over-year rise in active player days.
The company has also made strides in cross-sell engagement, with a 13 percentage point increase in online sports players engaging in iGaming activities. Enhanced player economics and activity metrics are reflected in a broader market range, improved pricing, and a strengthened parlay offering.
To boost player retention, BetMGM has refined its player segmentation and promotional strategies. This effort has resulted in a 37% increase in handle per active user and a 20% year-over-year rise in active player days.
BetMGM Has Optimistic Outlook for 2025
As BetMGM progresses into 2025, its strong year-to-date performance has bolstered confidence in surpassing its financial guidance. The company remains committed to achieving full-year positive EBITDA and has set its net revenue forecast between $2.4 billion and $2.5 billion.
The outlook for online sports remains positive, with expectations of a positive contribution by the end of the fiscal year. Additionally, BetMGM reaffirms its confidence in a pathway towards $500 million EBITDA in the coming years.
CEO Adam Greenblatt expressed optimism, stating, "2025 is off to an encouraging start for BetMGM as we execute our revised strategic plan. The momentum we built in the second half of 2024 continued into the first quarter as we implement our powerful iGaming strategy, enabling us to grow faster than the market and at scale."
As the company heads into May, it is poised to maintain its growth trajectory and achieve significant milestones by the year's end, driven by solid underlying activity trends and a strategic approach to the dynamic landscape of online gambling.
