Entain delivers solid Q3 as BetMGM outperforms, offsetting weaker international growth

Entain plc has reported a 6% year-on-year rise in total group net gaming revenue (NGR) for the third quarter of 2025, boosted significantly by a 23% jump in net revenue from its US joint venture BetMGM. Excluding its US operations, group NGR grew by 4% on a reported basis and 5% at constant currency, maintaining momentum despite pressure from softer sports betting margins in September.

Online NGR outside the US rose by 5% (6% cc), while retail operations grew 3%. The company cited strong player volumes and further market share gains in the UK and Ireland, where online revenue climbed 15% and retail rose 2%.

However, adverse sporting outcomes during the month of September impacted group sports margins, trimming 1 to 2 percentage points from quarterly online NGR. The standout performer was again BetMGM, Entain’s 50:50 joint venture with MGM Resorts. Net revenue for the US operator reached $667 million in Q3, up 23% from the previous year.

The US business continues to outperform expectations and has now revised its full-year 2025 guidance upward for the third time this year, projecting net revenue of at least $2.75 billion and EBITDA of approximately $200 million.

“BetMGM’s continued success and strong year-to-date performance are driven by our strengthened sports product and leading iGaming offering, coupled with refined player engagement,” said Entain CEO Stella David. “We are delighted that BetMGM is achieving sustainable profitable growth and expects to begin distributing cash to parents later this year.”

Entain CEO Stella David

Entain anticipates that BetMGM will distribute at least $200 million in excess cash during 2025. The company’s share price fell by 2% to 823p on Wednesday despite the positive update, highlighting investor caution amid mixed performance in several international markets and potential regulatory headwinds.

In Brazil, NGR dropped 11% at constant currency despite a 14% rise in volume, as unfavorable sports margins weighed on revenue. In Australia, revenue fell 6%, and further challenges could lie ahead as policymakers consider sweeping regulatory reforms stemming from the Murphy report.

Meanwhile, Italy posted a 6% increase in NGR, supported by growth in both online and retail channels.

Entain’s Central and Eastern Europe (CEE) segment also showed strength, with total NGR up 10% and retail revenue in Croatia performing ahead of expectations. Other markets such as Georgia, New Zealand, Spain, Austria, Greece, and Canada delivered double-digit online revenue growth.

International growth outside the US remained modest overall. Online NGR rose just 1% at constant currency, while retail NGR rose 6%. Customer-friendly outcomes in September dampened online sports betting revenue growth, which otherwise saw a 5% increase in volume. Entain holds exclusive sports betting rights in New Zealand, where it continues to expand its digital footprint.

In the UK, the company’s Ladbrokes and Coral retail outlets recorded revenue gains despite an industry trend of declining footfall and betting participation. 

However, Entain has flagged serious concerns about the UK government’s expected tax reforms. Chancellor Rachel Reeves recently suggested that gambling companies should “pay their fair share,” hinting at new fiscal measures to be unveiled in the November 26 budget.

“For every £1 ($1.37) of profit we make, over two-thirds is paid out in tax,” David told The Observer. “Piling on yet more taxes won’t raise more money – it will shrink the regulated market, cost jobs, and hand yet more business to illegal operators who pay no tax and protect no one.”

She also warned that up to 200 betting shops could face closure if tax burdens rise significantly. On the group’s investor call, David emphasized the risk posed by unregulated operators: “Today, over 500 sites exist. They look very professional, and they promise great rates, no protections, no guarantee you get paid out.”

Entain continues to reaffirm its full-year guidance. The group expects online NGR to grow approximately 7% at constant currency, with a reported growth in the mid-single digits. Group EBITDA for 2025 is expected to remain within the range of £1.1 billion ($1.47 billion) to £1.15 billion ($1.54 billion), unchanged from previous guidance. In 2024, group EBITDA stood at £1.09 billion ($1.46 billion).

The company said it remains focused on generating strong cash flow, targeting over £0.5 billion ($0.67 billion) in adjusted annual cash from 2028 onward. “Entain’s transformation continues at pace, with our strategic execution and expanding bandwidth delivering growth across our portfolio,” David noted.

Analysts have largely welcomed the steady results, despite challenges. “Mid-single-digit NGR gains in the non-US businesses point to operational resilience rather than acceleration,” said Russell Pointon, Director – Consumer at Edison Group. “BetMGM’s upgraded outlook is obviously encouraging. The shift to cash distributions is a positive signal.”