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Read Full BioBetMGM, the joint venture between MGM Resorts International and UK-based Entain, has raised its full-year 2025 forecast, signaling strength in the sector and triggering share gains for both parent companies.
The company now forecasts achieving a net revenue of “at least” $2.6 billion, up from its previous guidance of $2.4–$2.5 billion. Notably, BetMGM now expects to achieve core EBITDA of at least $100 million, a significant turnaround from the $244 million loss in fiscal 2024.
The revision demonstrates growing confidence in the operator’s execution and market position. BetMGM reported that its quarter-to-date trading is consistent with the 34% year-over-year growth it achieved in the first quarter of 2025.
Market Reaction: MGM, Entain, and Major Indexes
The announcement led to significant increases in the share prices of BetMGM’s co-owners.
With an 8% stock price jump, MGM Resorts was the third-best performer on the S&P 500. The growth also allowed the company’s year-to-date share price to reach positive comps.
Meanwhile, Entain saw a 15% surge, its most significant one-day increase since 2021. The surge also meant that Entain led the FTSE 100 index for the day.
BetMGM’s announcement also lifted other gaming stocks:
- Penn Entertainment gained 6.7%
- Las Vegas Sands rose 5.8%
- Wynn Resorts climbed 5.6%
- Caesars Entertainment was up 3.7%
- DraftKings and Flutter Entertainment (FanDuel’s parent) also saw solid gains
Positive Analyst Reaction for MGM Resorts
Analyst reactions affirmed the positive view on MGM Resorts after BetMGM upgraded its forecast.
A consensus recommendation by 21 brokerage firms puts the MGM Resorts stock as “outperform”. One-year price targets, as estimated by 18 analysts, average $45.98, with a high of $59 and a low of $35.00. The average target represents a 35.9% increase from the current price.
Several investment banks raised their target prices, citing improved digital profitability. That marks a turnaround from the spring, when investment banks lowered the target price.
Analysts suggest that the renewed profitability could aid MGM Resorts’ international growth strategies.
Strategic Implications for MGM Resorts
For MGM Resorts, BetMGM’s upgraded financial forecast represents a validation of the company’s omni-channel strategy. That’s a contrast to some rival operators, such as Penn Entertainment, which faces scrutiny from investor HG Vora, or Bally’s Corporation, which has faced opposition from investors in the past, regarding their digital segment pivot.
The possible digital profitability would provide significant strategic advantages for MGM Resorts. That includes opportunities to reinvest in other areas, such as international expansions in markets like Japan, China, and Thailand.
Moreover, digital profitability would provide MGM with a buffer against potential volatility in land-based casino operators, which experienced a slight decline in the first quarter.
Entain Reclaims Strategic Momentum After Difficult Years
The positive BetMGM forecast update will be particularly beneficial for Entain. The positive outlook offers a much-needed boost for the UK gambling giant, which experienced a few turbulent years, including agreeing to a £585 million ($792 million) settlement related to a bribery investigation of its former Turkish business.
Entain also faced considerable pressure from investors to offload its stake in the BetMGM joint venture. However, now with BetMGM’s bright outlook, Entain finds itself in a strengthened strategic position. Instead of divesting, the company is likely to prioritize stability and focus on further expanding the digital joint venture.
As the technology provider for BetMGM, this could include the development of more exclusive games for the platform, aiming to match the popularity of the MGM Grand Millions slot, which is known for producing some of the highest jackpots among US online casinos.
At the helm of this pivot is CEO Stella Davis, who was elevated from interim to permanent CEO in April following Gavin Isaacs’s departure in February. Davis’ strategy includes growth in the US through BetMGM and Brazil.
Analysts have responded positively to her appointment and strategy. The £8.66 ($11.74) price at close represented a 52-week high for the company. Year-to-date, the share price has increased by over 22%.
