Introduction
Entain plc (LON:ENT) and MGM Resorts International (NYSE:MGM) have provided an update on the FY 2024 performance of BetMGM, their joint venture in North America’s sports betting and iGaming market. BetMGM achieved strong revenue growth, particularly in iGaming, and expects to be EBITDA positive in FY 2025, with projected revenue between $2.4 billion and $2.5 billion.
Key Highlights
- FY 2024 Net Revenue: $2.1 billion, up +7% YoY, with accelerating growth in H2 2024.
- iGaming Revenue: Record $1.48 billion, up +13% YoY.
- Online Sports Revenue: $554 million, up +4% YoY, with adjusted growth of +17%.
- Total Betting Handle: $13.1 billion, up +20% YoY.
- Market Share: Stabilized at 14% Gross Gaming Revenue (GGR) share, with 22% in iGaming and 8% in Online Sports.
- EBITDA: ($244) million, reflecting a year of investment; Q4 EBITDA trended towards breakeven on a normalized basis.
- 2025 Guidance: Expected to be EBITDA positive, with an increase of approximately $250 million YoY.
Operational and Strategic Highlights
iGaming Growth & Engagement
- 55% YoY growth in Q4 Average Monthly Actives, demonstrating strong customer retention.
- Exclusive gaming content and top-performing omnichannel slot titles contributed to revenue growth.
- Largest regulated U.S. online jackpot payout of $6.5 million in New Jersey.
Online Sports Performance
- 41% increase in MLB Same Game Parlay (SGP) bets per active user.
- +11.5ppt increase in cross-sell from Online Sports to iGaming.
- Optimized promotional strategies and enhanced player engagement tools boosted retention.
Expansion & Market Presence
- Launched sportsbooks in North Carolina and Washington, D.C.
- Secured a $150 million revolving credit facility (currently undrawn), ensuring financial flexibility.
- First sports betting app to offer a seamless nationwide digital wallet for players traveling across regulated states.
Management Commentary
Adam Greenblatt, CEO of BetMGM, stated:
“2024 was a year of investment and rebuilding momentum. Our improved product, accelerating growth, and enhanced efficiency position us for positive EBITDA in 2025. With a strong iGaming business and a more competitive Online Sports segment, we are confident in our pathway to achieving $500 million EBITDA in the coming years.”
Outlook
BetMGM expects Net Revenue of $2.4 billion – $2.5 billion in FY 2025, with iGaming contribution exceeding 2024 levels and Online Sports becoming contribution positive. Its market position and operational leverage reinforce confidence in reaching $500 million EBITDA in the future.
