BetMGM executives reported a sharp financial turnaround in fiscal 2025, highlighting record revenue, a swing to meaningful EBITDA and cash generation, and the start of distributions to parent companies MGM Resorts and Entain (LON:ENT). Chief Executive Officer Adam Greenblatt and Chief Financial Officer Gary Deutsch outlined performance drivers across iGaming, online sports betting (OSB), and omni-channel initiatives during the company’s fourth-quarter and full-year 2025 update.
2025 results: record revenue and a step-change in profitability
BetMGM posted $2.8 billion in 2025 net revenue, up 33% year-over-year, and $220 million of EBITDA, which management said represented an increase of nearly $500 million versus the prior year. Fourth-quarter net revenue rose 39% to $780 million, with $71 million of EBITDA. Greenblatt said December was the company’s best month ever, and the final week of 2025 was its best week.
Segment performance: iGaming as the anchor, OSB inflection, and Nevada momentum
iGaming remained the largest business line, delivering $1.8 billion in 2025 net revenue, up 24%, and “over $500 million” in contribution. Q4 iGaming revenue rose 18%. Management said average monthly actives in iGaming grew 24% in 2025 despite no new state launches, and players played 14% more days per month on average.
Greenblatt emphasized content breadth and exclusives, saying BetMGM’s library now includes over 7,000 titles, with more than 1,500 added since last year. He cited exclusive franchise releases such as The Price is Right, Friends, and a new Wizard of Oz omni-channel installment available digitally and at select properties.
Online sports betting accelerated materially in 2025. BetMGM reported over $900 million in OSB net revenue for the year, up 63%. Q4 OSB net revenue reached a record $279 million, “nearly double” the prior year, and Deutsch said OSB was up 93% year-over-year in the quarter. OSB handle grew 16% for the full year and 3% in Q4, which management attributed partly to more disciplined acquisition and targeted bonusing during a typically promotion-heavy quarter.
Greenblatt and Deutsch said BetMGM’s sports strategy shifted toward fewer, higher-value “premium mass” players, with improved unit economics. Management cited:
- 77% year-over-year increase in OSB net gaming revenue (NGR) per active per month
- 26% increase in average handle per player and a 12% increase in bets placed per player
- 170 basis points of OSB NGR margin expansion to 5.9%
- 24% shorter marketing payback periods
BetMGM said OSB generated over $200 million in contribution in 2025, the first year of full-year positive contribution for the segment.
Omni-channel and Nevada were highlighted as a differentiator. Greenblatt said 2025 demonstrated Nevada’s value, with combined digital and retail sports handle up 26% and net revenue up 65% year-over-year. Nevada represented 5% of overall net revenue for the year, despite being a sports-only state and BetMGM operating in 30 jurisdictions (with Missouri launched in Q4 as the 30th). In response to an analyst question, management discussed efforts to build more seamless customer “plumbing” between home states and Nevada and said it believed its digital Nevada business could potentially double, with contribution also having “easily” an opportunity to double.
Cash returns to parents and new “adjusted EBITDA” reporting
BetMGM began returning capital to its parents, distributing $270 million in December 2025, above prior guidance of at least $200 million. Deutsch said the distribution size also benefited from the company starting 2025 with excess cash. BetMGM ended 2025 with slightly more than $100 million of unrestricted cash, consistent with a target minimum balance, and retains a $150 million credit line for liquidity. Deutsch also said the company would not use the revolver to fund distributions.
Starting in 2026, BetMGM will begin paying “parent fees” to MGM Resorts and Entain, tied to licenses and services provided under the joint venture agreement and triggered by BetMGM becoming long-term cash flow positive. The fees are calculated as a percentage of revenue and will be recorded as an operating expense, but BetMGM plans to report a new adjusted EBITDA metric that adds back parent fees to support comparability to prior-year EBITDA reporting. Deutsch said the company expects parent fees to be in the range of 15% to 20% of adjusted EBITDA between the parents over the coming two years, and that adjusted EBITDA minus CapEx will be the best proxy for total cash to parents.
2026 outlook and path toward $500 million adjusted EBITDA
For fiscal 2026, management guided to $3.1 billion to $3.2 billion of net revenue and $300 million to $350 million of adjusted EBITDA, and said it expects to continue returning cash to the parents. Greenblatt pointed to initiatives including an iGaming and OSB launch in Alberta, deeper work with the Borgata iGaming brand, preparations around the World Cup, and further strengthening of the company’s Nevada omni-channel position.
On margins and flow-through, Deutsch reiterated the company’s longer-run expectation that 40% to 45% of revenue growth should flow through to EBITDA in “normal” years. He said 2025 flow-through was 67%, driven by one-time benefits from optimization efforts, and that 2026 is expected to be lower—around 30%—due to Alberta launch investment and the annualization of state tax rate increases, with the biggest impact from New Jersey. Management also reiterated an expectation to cross $500 million in annual adjusted EBITDA in 2027, assuming continued execution and a benign macro environment.
Regulatory commentary: prediction markets and tax environment
Greenblatt reiterated BetMGM’s support for state regulators and other stakeholders raising concerns about prediction markets, arguing they circumvent established frameworks related to taxation, consumer protection, responsible gaming, integrity monitoring, and anti-money laundering safeguards. He said the company is not currently seeing a material adverse impact that can be specifically attributed to prediction markets, citing market research estimating a low- to mid-single-digit percentage impact on OSB handle and stating that meaningful trading volume comes from unregulated states, sharp/professional players, and 18- to 20-year-old customers.
On promotional dynamics, management described a mixed environment, with some large operators moderating promotions while others remain aggressive. Greenblatt also noted a recent slight uptick in cost-per-acquisition (CPA), attributing it to increased competition for media assets and citing that Google has opened certain search terms in the category to prediction market operators, which he said could pressure ad pricing.
In response to a question on tax increase risks, Greenblatt said the company has been active through the Sports Betting Alliance in arguing for reasonable tax rates and added that the presence of prediction markets alongside regulated sportsbooks is “helpful” in making the case for the status quo, while noting state-by-state political dynamics can vary and that the company’s guidance reflects its best information.
About Entain (LON:ENT)
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, SuperSport and TAB NZ; Gaming brands include Foxy Bingo, Gala, GiocoDigitale, Ninja Casino, Optibet, Partypoker and PartyCasino. 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.
