BetMGM Eyes Full-Year Profitability in 2025

Amid economic uncertainty and turbulent financial markets, BetMGM is defying industry headwinds with a strong start to the year. The sportsbook and igaming operator reported a 34% year-over-year jump in first-quarter net revenues, fueling optimism that it will achieve full-year profitability for the first time in 2025.

For the quarter ending March 31, BetMGM posted $443 million in net revenue, up from $330 million in the same period last year. The performance translated to an adjusted EBITDA of $22 million—a dramatic turnaround from a loss exceeding $150 million in Q1 2024. The results reflect BetMGM’s refined strategy, including a sharper focus on high-value customers, disciplined promotional spending, and product optimization, according to CEO Adam Greenblatt.

“The momentum we built in the second half of 2024 continued into the first quarter,” said Greenblatt. “We’re implementing our igaming strategy in a way that enables us to grow faster than the market and at scale.”

 

Market Defies Broader Economic Pressures

The earnings call came at a time of heightened scrutiny for U.S. gaming stocks, which have been under pressure since President Donald Trump’s early-April announcement of sweeping tariffs. The resulting market volatility prompted concerns over consumer discretionary spending, especially in sectors like gaming that rely on player engagement.

Yet BetMGM appears largely insulated. Greenblatt stated that the company has seen no material impact on player behavior due to macroeconomic factors, despite inflationary fears.

 

We’re not seeing signs of players pulling back,” Greenblatt said. “If anything, our engagement metrics are accelerating.

 

Indeed, player metrics were strong across the board. Active player days increased 20% year-over-year, while average handle per customer jumped 37%. Bets per user also surged 28%, indicating deeper player engagement even in a cautious spending environment.

Central to BetMGM’s improved financials is a disciplined approach to customer acquisition and retention. Greenblatt described the company’s current model as “more surgical,” targeting high-value users and segmenting marketing spend more effectively.

With promotional costs under scrutiny across the industry, BetMGM has maintained stability in customer acquisition costs. Greenblatt acknowledged that promotional intensity in North America remains higher than in mature markets like Australia—where promotions make up just 1%-2% of handle—but he expects that gap to narrow over time. BetMGM’s strategy contrasts with peers still dependent on volume-based acquisition models. Instead, the operator is doubling down on quality over quantity.

The first quarter wasn’t without challenges. March Madness delivered some unfavorable outcomes for sportsbooks, with popular teams like Florida and UConn clinching titles and all four No. 1 seeds advancing to the men’s Final Four—a rarity that boosted player wins and dealt BetMGM a $30 million blow. Yet the operator still grew revenue and improved margins, highlighting the resilience of its business model.

Looking Ahead

Despite recent setbacks, BetMGM reaffirmed its full-year guidance, projecting net revenues between $2.4 billion and $2.5 billion for 2025. The company also reiterated expectations for positive EBITDA in 2025, following a 2024 loss of $244 million.

In the long term, BetMGM is targeting annual EBITDA exceeding $500 million, a level consistent with projections from competitors like Caesars Digital. That figure reflects the company’s ambition to be not just profitable—but sustainably so—in the increasingly competitive U.S. gaming market.

With Q1 in the books and early momentum in its favor, BetMGM is positioning itself as one of the industry’s most agile and resilient players. If current trends continue, the long-awaited pivot to profitability could be just months away.