BetMGM improved its 2025 financial projection after a successful third quarter, at least the third time this year the operator has done so.
With earnings before interest, taxes, depreciation, and amortization (EBITDA) of $200 million, the 50/50 joint venture between Entain (OTC: GMVHY) and MGM Resorts International (NYSE: MGM) currently anticipates revenue of at least $2.75 billion. This represents an increase from a July expectation of $2.7 billion in sales on $150 million in EBITDA.
"BetMGM’s momentum from H1 continued into Q3, underpinned by the ongoing execution of our strategic plan,” said CEO Adam Greenblatt in a statement. “The execution in operations we have described this year – improved marketing efficiency, player management, brand positioning, and product and platform improvements – all contributed to our strong revenue growth and material cash flow increase from both sides of the business.”
BetMGM's net revenue increased by 23% to $667 million in the third quarter. Online sports betting revenue jumped by 36%, while iGaming sales increased by 21%. The operator made progress toward earnings optimism, as seen by the $57 million year-over-year improvement in EBITDA to $41 million.
Prediction Market Concerns May Be Allayed by BetMGM Progress
Although BetMGM has made significant progress, the operator's positive 2025 vision and strong third-quarter results are overshadowed by the growing threat of competition from prediction markets like Kalshi and Polymarket.
Shares of BetMGM rivals DraftKings (NASDAQ: DKNG) and FanDuel owner Flutter Entertainment (NYSE: FLUT) have been negatively impacted by the soaring NFL event contract volume on Kalshi, but BetMGM's optimistic financial outlook may indicate that some analysts' concerns about the prediction market in relation to sports wagering equities are unfounded.
In response to rumors that the first month of the NFL season was punitive for rivals, BetMGM reported a 36% increase in online sports betting revenue and a positive EBITDA for the third quarter.
Prediction markets won't be held responsible for the widely anticipated dismal third-quarter profit reports from DraftKings and Flutter. Instead, another wave of customer-friendly NFL game outcomes will be the main obstacle. Such comments was not included in BetMGM's 2025 projection update.
BetMGM is in a strong financial position
BetMGM stated that it anticipates giving parents Entain and MGM at least $200 million before the end of this year and keeping at least $100 million in unconstrained liquidity once those payments are made, further demonstrating its sound financial standing.
The operator stated that its total liquidity is $250 million, which includes the previously indicated $100 million in cash and a $150 million revolving credit line. These dividends are anticipated to be delivered on a quarterly basis moving forward.
“We have reached yet another inflection point in our journey, returning operating cash flow back to Entain and MGM Resorts,” adds Greenblatt. “My previous statements that BetMGM is healthier than it has ever been still ring loudly, and our stronger-than-expected performance through Q3 positions us well for the rest of the year and into 2026.”
