Entain Eyes Bigger BetMGM Payouts as JV Hits $2.8B Revenue, $220M EBITDA and Guides Higher for 2026

Core Insights - BetMGM reported a significant financial turnaround in 2025, achieving $2.8 billion in net revenue, a 33% increase year-over-year, and $220 million in EBITDA, marking a nearly $500 million improvement from the previous year [3][4][7] - The iGaming segment remained the largest business line, generating $1.8 billion in net revenue, up 24%, while online sports betting (OSB) revenue accelerated to over $900 million, reflecting a 63% increase [1][6][8] - Management provided a positive outlook for 2026, projecting net revenue between $3.1 billion and $3.2 billion and adjusted EBITDA of $300 million to $350 million, with a target of exceeding $500 million in adjusted EBITDA by 2027 [7][14][15] iGaming Performance - iGaming generated $1.8 billion in net revenue for 2025, up 24%, with a contribution of over $500 million [1][6] - Average monthly active users in iGaming grew by 24% in 2025, with players engaging 14% more days per month [1] Online Sports Betting (OSB) Insights - OSB net revenue reached over $900 million in 2025, a 63% increase, with Q4 revenue hitting a record $279 million, nearly double the previous year [8][9] - OSB handle grew by 16% for the full year and 3% in Q4, attributed to disciplined acquisition strategies [8][10] - The OSB segment achieved a positive contribution of over $200 million for the first time in 2025 [9] Financial Metrics and Cash Returns - BetMGM distributed $270 million to its parent companies in December 2025, exceeding prior guidance [12] - The company ended 2025 with over $100 million in unrestricted cash and a $150 million credit line for liquidity [12] - Starting in 2026, BetMGM will incur "parent fees" of approximately 15-20% of adjusted EBITDA, which will be recorded as an operating expense but added back for adjusted EBITDA reporting [5][13] Market Dynamics and Strategic Initiatives - Management highlighted the importance of omni-channel strategies, particularly in Nevada, where combined digital and retail sports handle increased by 26% and net revenue rose by 65% year-over-year [11] - The company is focusing on fewer, higher-value "premium mass" players to improve unit economics in its sports strategy [8] - BetMGM's content library has expanded significantly, now including over 7,000 titles, with exclusive releases contributing to its competitive edge [7]