BetMGM posts Q1 profit with $657M revenue as iGaming, sports betting surge past expectations

BetMGM, the joint venture between MGM Resorts International and Entain, reported a profit in the first quarter, backed by a 34% year-over-year revenue increase to $657 million and strong gains in both iGaming and online sports betting, marking a sharp turnaround from last year’s losses.

The company delivered an adjusted EBITDA of $22 million for Q1 2025, a dramatic improvement from a $132 million loss during the same period last year. iGaming revenue climbed 27% to $443 million, while online sports revenue surged 68% to $194 million.

"2025 is off to an encouraging start for BetMGM as we execute our revised strategic plan," said Adam Greenblatt, CEO of BetMGM.

"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. In Online Sports, we are elevating our brand and delivering improved performance, even in the face of unfavorable sports outcomes during key moments in the quarter."

Adam Greenblatt, CEO of BetMGM

During the first three months of the year, the company reported a 29% increase in total betting handle to $4.09 billion, alongside improved margins and player metrics. Notably, BetMGM’s average monthly active users grew to 1.07 million, up 6% year-over-year, while active player days rose by 20% and bets per user increased 28%.

The company said its performance was driven by a market-leading iGaming platform, stronger parlay offerings, expanded market pricing, and a more targeted approach to customer retention. The proportion of online sports bettors also engaging with iGaming products grew by 13 percentage points year-over-year.

Despite unfavorable sports outcomes during March Madness that resulted in a $30 million hit to net revenue, BetMGM managed to stay profitable in Q1. Florida’s men’s team and UConn’s women’s team both took national titles, while all four top-seeded men’s teams reached the Final Four for only the second time in tournament history, outcomes that generally result in lower operator margins.

Addressing investor concerns about broader economic headwinds, Greenblatt said the company has not seen any negative impact on player behaviour from the macro environment. He also noted that promotional spending and customer acquisition costs remained stable, allowing the company to maintain efficiency in growth strategies.

Handle per active user rose 37% year-over-year, driven by improved segmentation and more “surgical” reinvestment in high-value customers. Greenblatt highlighted this as a key shift, saying the company is prioritizing the cost-to-value ratio in customer acquisition and retention.

The company reiterated its full-year 2025 outlook, including net revenue guidance of $2.4 billion to $2.5 billion and continued positive EBITDA performance. BetMGM also reaffirmed its long-term target of achieving over $500 million in annual EBITDA, aligning with the ambitions of other top-tier competitors in the U.S. betting market.

Shares of Entain rose over 10% following the announcement, while MGM Resorts saw a more modest 1.8% gain.