BetMGM said it was able to surpass initial expectations for its third quarter, with revenue having increased 23% year-on-year. The operator has also announced plans to return $200 million to its parent companies by the end of the year.
For the three months through to 30 September, revenue at BetMGM amounted to $667 million. This, the operator said in a trading update on Tuesday, was accompanied by a 13% rise in player spending to $3.16 billion.
Growth across the board in Q3
BetMGM noted double-digit net revenue growth across both its iGaming and sports betting segments.
Online sports betting saw the most growth, with revenue rising by 36% to $202 million. The operator put this down to an upgraded online sports product, which it said offers users an improved experience. However, it also noted how favourable sports results in July and August were partly offset by customer-friendly results in September.
Within the sports betting segment, NGR per active was 49% higher than in Q3 of last year. In addition, handle per active increased 23%.
As for iGaming, revenue jumped 21% to $454 million, which BetMGM said was helped by “continued strong growth” in player acquisition, retention and activity. Average monthly actives were 21% higher in Q3.
Also on iGaming, BetMGM referenced several developments as part of its ongoing plans to improve its offering. These included exclusive omnichannel title launches and cross-selling iGaming on its sports betting offering.
A further $11 million in net gaming revenue came from retail and other operations during Q3. In addition, BetMGM reported positive group EBITDA of $41 million for the period, in contrast to last year’s $16 million loss.
BetMGM raises full-year guidance again
As for its performance in the year-to-date, BetMGM said group revenue for the nine months to the end of September is set to hit $2.02 billion. This would be 31% more than last year’s total for the same period.
Revenue from iGaming is set to be 26% higher at $1.35 billion, with sports betting revenue up 52% to $624 million. In addition to this, player spending in the nine-month period is set to amount to $10.67 billion, a rise of 22%.
On top of this, EBITDA for the year-to-date was placed at $150 million, in contrast to the $139 million loss posted in the previous year. Incidentally, the $150 million figure is what BetMGM expected full-year EBITDA to reach when it increased guidance after a positive Q2 showing.
Initially, BetMGM said during its full-year 2024 results that it would be “EBITDA positive” for the year. However, having exceeded expectations in each reporting period, this is now set to rise again, with the operator issuing improved guidance.
Now, full-year EBITDA is set to reach $200 million, BetMGM said in the update. In addition, net revenue is on track to hit $2.75 billion, in line with the “at least $2.7 billion” stated after Q2.
Business ‘healthier than ever’, says CEO
“Our momentum from H1 continued into Q3, underpinned by the ongoing execution of our strategic plan,” BetMGM CEO Adam Greenblatt said. “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.
“Strong underlying metrics and margin outperformance during July and August support our confidence in raising guidance for full year 2025. Furthermore, we have reached yet another inflection point in our journey, returning operating cash flow back to Entain and MGM Resorts.
“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.”
BetMGM commits to return $200 million to parents
Also noted in the update were details on returning funds to the brand’s parent companies. Entain and MGM Resorts International have run the operation as a joint venture since 2019.
In August this year, BetMGM Chief Financial Officer Gary Deutsch said the operator could be in a position to return cash to both parents by the end of the year. Deutsch was speaking after BetMGM’s positive showing in Q2.
Now, BetMGM has confirmed that it intends to return “at least $200 million” to Entain and MGM by the end of the year. After this, it still expects to end 2025 with approximately $100 million of unrestricted cash.
It added that distributions of cash to parents will be on a “quarterly cadence” going forward.
Revenue at BetMGM is expected to amount to $667 million in the third quarter of 2025.