BetMGM announced on Tuesday that it anticipates positive earnings before interest, taxes, depreciation, and amortization (EBITDA) this year, aiming for $500 million in EBITDA in the future. 

The MGM Resorts International (NYSE: MGM) and Entain Plc (OTC: GMVHY) 50/50 joint venture noted that it anticipates 2025 net revenue between $2.4 billion and $2.5 billion, while its iGaming division is consistently expanding and yielding remarkable returns along the way. The operator indicates that EBITDA this year might reach up to $250 million.

"With BetMGM’s renewed acceleration across both iGaming and Online Sports we expect to achieve positive EBITDA in 2025, and our scaled podium position in the world’s largest gaming market underpins our confidence in our pathway to $500 million EBITDA in the coming years,” said CEO Adam Greenblatt in a statement.

For BetMGM, these advancements are significant because online casinos are generally regarded as one of the operator’s key strengths, despite losing some market share in this area over the last few years. Online casinos are considered a major long-term growth opportunity for gaming firms — one that provides better profit margins compared to online sports betting. 

 

iGaming Fuels BetMGM Earnings Increase 

After what was termed "a year of investment," in 2024, BetMGM may extract greater advantages from iGaming this year, a crucial aspect given that the domestic online sports betting market is led by only two firms. 

BetMGM reported that its share of the online sports betting market in 2024 was only 8%, whereas its iGaming share was 22%. Last year, the operator's iGaming earnings jumped 13% to $1.5 billion. At present, only seven states allow online casinos, yet there is hope that this figure may grow in the upcoming year. 

MGM has carried out several bolt-on acquisitions intended to strengthen its iGaming presence, and there’s indication that some of these actions may yield benefits in the long run. 

“Our leading iGaming business continues to grow strongly and deliver attractive returns. We also have an exciting opportunity in Online Sports, having made meaningful progress in 2024,” adds Greenblatt.

 

Might BetMGM's Profitability Spark a Move from MGM? 

Approximately four years ago, MGM attempted to purchase Entain and achieve full ownership of BetMGM — a goal that still exists today. The proposal was turned down, and the two gaming firms continue to possess an equal 50/50 stake in the online gaming organization. 

In a report released last month, Macquarie analyst Chad Beynon indicated that MGM might consider another bid for Entain. As a result of the potential target's decline in market value in recent years, it may be forced to enter negotiations at a price lower than what the Bellagio operator proposed in 2021. 

There has also been speculation that MGM might just purchase Entain’s stake in BetMGM, which would be more cost-effective for the buyer while still meeting certain cash requirements of the seller. 

Both companies have not provided any remarks regarding the potential for such a transaction, and the press release released by BetMGM on Tuesday did not touch upon the related speculation.