Summary: Outcome of the Matter
Entain, the global sports betting and gaming group, has reported strong growth in the first half of 2025, driven by a combination of factors including robust online performance, a successful joint venture with BetMGM, high engagement from key sporting events, and strategic focus on digital-first strategies.
The total group net gaming revenue (NGR), including Entain’s 50% share of BetMGM, rose 7% year-on-year (10% on a constant currency basis) to £3.15bn. BetMGM delivered a standout performance, with net revenue up 35% to $1.35bn and EBITDA improving significantly.
The online NGR outside the US increased 8% (cc) to £1.88bn, driven by double-digit growth in the UK & Ireland (21% cc) and Brazil. The UK & Ireland online segment regained market share as it moved past the initial impact of regulatory restrictions.
Record betting activity around key sporting events such as the Women’s Euros, the Club World Cup final, and the 2025 French Open contributed significantly to revenue. There is also a noted rise in interest in female sports and a shift in betting habits toward player-specific outcomes.
Entain emphasized cost discipline and margin expansion, with total group EBITDA rising 11% to £583 million and online EBITDA up 13% to £502 million. The shift to higher-margin online sports betting and iGaming categories helped improve profitability.
The appointment of Stella David as permanent CEO in April 2025 brought continuity to Entain’s transformation, focusing on making the business “stronger, fitter, and faster,” further supporting growth and margin improvements.
Besides the strong UK & Ireland performance, Italy (+7% cc), New Zealand (+12% cc), and several European and Central and Eastern European markets showed growth, offsetting softer results in Australia, the Netherlands, and Belgium.
Brazil, despite upcoming gaming taxes, is set to be a growth engine, with online NGR jumping 21%. On the other hand, Australia's NGR decreased 7%, due to weaker market conditions and unfavourable racing results.
Entain's competitors include Flutter and FanDuel in the US, MGM Resorts with land-based operations, and Brightstar with a notable lottery presence, following its split from IGT.
The upgraded full-year guidance indicates confidence, but continued international regulatory shifts, taxation changes in Brazil, and competitive pressure will test whether this momentum can be sustained through 2025.
In the UK & Ireland, online NGR surged 21%, with sports betting revenue up 16% and gaming up 23%. Retail NGR fell 1%. Central & Eastern Europe saw growth from Croatia's SuperSport at +14% online, while Poland's STS faced competitive and regulatory pressures. Italy recorded an overall increase in retail and online NGR of 7%.
This impressive first-half performance demonstrates the strength of Entain's core markets and the potential of BetMGM, leading to an upgrade in the full-year guidance.
- Entain's focus on digital-first strategies and strategic partnerships, such as the joint venture with BetMGM, contributed to a notable 35% increase in BetMGM's net revenue, showcasing the potential for sports betting and investing in these partnerships.
- The continuous growth of Entain's business can be attributed to factors like robust online performance, success in key sporting events, and a strategic shift toward high-margin online sports betting and iGaming, suggesting a correlation between technology, sports, finance, and business.
- The revenue growth in Brazil, despite upcoming gaming taxes, underscores the potential for technology and finance to drive growth in emerging markets, making it a significant area for future business expansion and sports betting opportunities.
