BetMGM Turns Profit, Boosting Entain’s First-Half Results

Entain has reported a solid start to 2025, with double-digit growth in key markets and its US joint venture, BetMGM, turning a profit for the first time in the first half of the year. The performance prompted the group to raise its full-year outlook, underlining the momentum in its core regions despite challenges in some international markets.

The FTSE 100 gambling group posted a 7% year-on-year increase in net gaming revenue (NGR) to £2.63bn ($3.34bn) for the six months to 30 June, or 10% on a constant currency basis. Gains in the UK, Brazil and the US offset softer conditions in Australia and parts of Central and Eastern Europe. Underlying profit also rose sharply, but the group still booked a £116.9m post-tax loss due to one-off costs.

Definition

Net Gaming Revenue (NGR) refers to the amount a gambling operator retains from wagers after paying out winnings, but before deducting other expenses. It is a key measure of operational performance in the betting and gaming sector.

Entain’s growth in the first half came from a combination of factors: regulatory headwinds easing in the UK, aggressive marketing and sponsorship deals, product improvements across digital platforms, and a push in emerging regulated markets such as Brazil. In parallel, BetMGM’s profitability milestone was driven by higher-margin customer segments and operational efficiencies in the competitive US betting landscape.

Understand the Performance

The UK & Ireland market provides a clear case study. Online NGR surged 21% year-on-year, with sports betting revenue up 16% and gaming up 23%. Entain attributed the uplift to a smoother customer experience, improved digital platforms, and greater engagement following the stabilisation of compliance rules. However, retail NGR in the same region fell 1%, showing that online gains are not yet mirrored on the high street.

The first half of 2025 marks a potential turning point for Entain. The group has been in a turbulent leadership and market phase over the past few years, with fluctuating earnings and strategic uncertainty. Now, CEO Stella David and newly confirmed chair Pierre Bouchut are steering the business with a focus on “must-win” markets: the UK, Brazil and the US. H1 results suggest this targeted approach is beginning to pay off, particularly as BetMGM enters profitability ahead of expectations.

The Players and How it Affects Them

• UK & Ireland: Strongest-performing market, with digital platforms leading growth. Sponsorships with Liverpool and Birmingham City have boosted visibility.
• Brazil: Newly regulated market with a 21% online NGR jump, set to be a growth engine despite upcoming gaming taxes.
• Italy: Steady gains in both retail and online, up 7% overall.
• Australia: Down 7%, hurt by weaker market conditions and unfavourable racing results.
• Central & Eastern Europe: Croatia’s SuperSport led growth at +14% online, while Poland’s STS faced competitive and regulatory pressures.
• BetMGM (US): 35% NGR rise, $109m EBITDA versus a loss last year. Online sports up 61%, iGaming up 28%.
• Competitors: Flutter remains a close rival in the US with FanDuel, while MGM Resorts leverages its land-based operations. Brightstar’s recent split from IGT makes comparisons limited, but its lottery presence remains notable.

Our first-half performance demonstrates the strength of our core markets and the potential of BetMGM, giving us confidence to raise our full-year guidance.

Conclusion

Entain’s first-half results paint a picture of a company regaining strategic footing after a period of volatility. Growth in the UK, Brazil and the US has compensated for softness elsewhere, while the profitability of BetMGM strengthens its position in the competitive American market. The upgraded full-year guidance signals confidence, though continued international regulatory shifts, taxation changes in Brazil and competitive pressure will test whether this momentum can be sustained through 2025.