BetMGM and Caesars Digital
Great signs for sports betting
Wanted to put out a quick post since CZR reported yesterday and Entain/MGM released a Q1 update on BetMGM (BetMGM is a join venture 50% owned by MGM and 50% by Entain / here is MGM’s release). From Caesars:
During the first quarter of 2025, consolidated Adjusted EBITDA grew 4% over prior year driven by significant gains in our Digital segment which delivered a new Q1 record, growth in our regional segment with strong contributions from recently opened properties and a solid quarter in Las Vegas against a tough Super Bowl compare last year.
The gains are very significant indeed - Digital went from $5m of adjusted EBITDA to $43m:
Even though right now Digital is only a 5% contributor to overall EBITDA, the growth and operating leverage long-term suggest it could get a lot higher.
From Entain:
BetMGM’s strong momentum from 2H 2024 continued during 1Q 2025, driven by its leading iGaming offering and strengthened sports product, and refined approach to player management
1Q Net Revenue up +34% YoY with strong growth across both iGaming (+27%) and Online Sports (+68%)
Positive 1Q EBITDA and underlying trends reaffirm confidence that FY 2025 will be EBITDA positive
Engagement and betting activity are increasing; BetMGM reported 28% growth on bets/active player, 37% on handle/active (you can think of as dollar amount bet) and 20% growth on active player days in the Online Sports segment. I read this as sports gamblers are opening the BetMGM app more, making more bets and making higher dollar bets. iGaming is holding up nicely as well:
Texas and California and a few other states still aren’t sports gambling legalized:
I think there is a lot of growth left here on the existing “install base” and new TX/CA cohorts to come in the next few years.
MGM and CZR continue to buy back their own shares. CZR had a nice “bottom tick” of its own stock, buying $100m in April at $23.84:
Overall, encouraging signs on digital.