Entain’s stock price surged Monday morning after the international online gaming operator updated the financial outlook for BetMGM. Entain share prices pumped 8% after BetMGM reported its first quarter revenue growth touched 34% year-over-year.
The company owns some of the largest European gaming brands, including PartyPoker and Ladbrokes. They also own BetMGM as part of a joint venture established with MGM Resorts in January.
That revenue jump has continued into the second quarter as well, and net revenue for 2025 was adjusted from the initial estimate of $2.4 billion to $2.5 billion. The company also adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) to $100 million for the current fiscal year. Online sports betting and iGaming have been a significant part of that growth.
“This continued strength provides BetMGM increased confidence in its performance for 2025 and as a result BetMGM upgrades its guidance for FY 2025,” the companies noted in an earnings statement. “BetMGM remains excited about the significant opportunities ahead. Its strengthened business, revised strategic approach, and performance momentum, further reinforce its confidence in future growth prospects and pathway to $500 million EBITDA in the coming years.”
Entain Looks Towards U.S. Markets
BetMGM operates online sportsbooks in numerous states across the country and online casino platforms in Michigan, New Jersey, Pennsylvania, and West Virginia. The company also has online poker rooms in those states, excluding West Virginia.
BetMGM’s first-quarter revenue jump was thanks to strong growth across both online casino and sports betting verticals. The online casino revenue was up 27% year-over-year, while online sports betting revenue surged 68%.
“2025 is off to an encouraging start for BetMGM as we execute our revised strategic plan,” BetMGM CEO Adam Greenblatt said. “The momentum we built in the second half of 2024 continued into the first quarter as we implement our powerful iGaming strategy, enabling us to grow faster than the market and at scale. In online sports, we are elevating our brand and delivering improved performance, even in the face of unfavorable sports outcomes during key moments in the quarter.”
Entain Moving From London Exchange To NYSE?
The joint U.S. operations now seem to be a bigger deal for Entain. As a result, there are rumors that the company is considering moving from the London Stock Exchange to the New York Stock Exchange.
The move would give shareholders access to a larger capital pool. The LSE holds a combined market value of $3.42 trillion from all the companies listed on the exchange. However, the NYSE is home to $28.3 trillion in investor funds.
Flutter Entertainment, the parent company of FanDuel and PokerStars and Entain’s main competitor, moved the company’s stock listing across the Atlantic last year. Since the switch, Flutter’s stock value increased by 48.17%.
There are plenty of reasons for Entain investors to believe a similar value accrual could occur by moving from London to Wall Street.
Entain’s good fortune with BetMGM comes after the company was considering selling PartyPoker in 2024. Sky News reported that industry sources believe the online poker site could be valued at around £150 million ($191.8 million).
However, in the May 2024 earnings report, Entain didn’t mention PartyPoker as a potential sale piece. Thus, it appears the brand is now a part of Entain’s long-term plans. The company noted that “there remains significant upside by focusing on delivery of the group’s strategy of returning to organic revenue growth, expanding margins and winning in the US.”
