BetMGM suffered nearly $85 million in income losses for the fourth quarter of 2024, the latest indicator of an unusually strong quarter for the betting public.
MGM disclosed that its balance sheet incurred $42.3 million in losses during the last three months from BetMGM, which includes its online sportsbook and casino division. MGM splits all profits and losses with European gaming giant Entain, its 50/50 joint venture partner in BetMGM.
With online slot and table game win percentage largely static each quarter and year, the dramatic loss can largely be attributed to the sportsbook.
Financial indicators from other sportsbook operators leading up to MGM’s Wednesday earnings release hinted that the books had taken a beating in the fall. These numbers are the clearest indicator yet of an incredible stretch for bettors.
BetMGM lost nearly $85 million (!!) in income in the fourth quarter of 2024, another sign of an incredible football season for the betting public
— Ryan Butler (@ButlerBets) February 12, 2025
The fourth quarter is perennially sportsbooks’ most heavily bet quadrant of the year, largely due to college and professional football. Football has also traditionally been among the most profitable sports for books.
State revenue reports across most states showed October was an atypically strong month for the betting public as many favorites won and overs hit. After the books returned to their traditional form in November, another wave of favorable December results for bettors in both college football playoff games and NFL regular-season games led to one of the worst quarters financially for operators.
October 2024 sportsbook hold percentage was 7.1%, the worst month for operators since June 2022. That record was broken two months later when December hold fell to 5.8%.
BetMGM still projects long-term success
Despite the rough three months, MGM is bullish about its sports betting future.
MGM CEO Bill Hornbuckle reiterated projections that BetMGM will drive “positive contributions” in 2025. That includes expectations of positive EBITDA (earnings before interest, taxes, depreciation and amortization) in 2025 from nearly $2.5 billion in revenue.
Long term, MGM expects its U.S. online gaming arm to generate $500 million in annual EBITDA.
Like most larger sportsbooks, including FanDuel and DraftKings, BetMGM has not turned consistent profits despite billions in revenue. Sportsbooks have combined to spend billions on marketing, free bets, and other promotional costs in efforts to grow market share.
BetMGM reported 946,000 monthly active users in 2024, a growth of 14% from 827,000 in 2023. That’s compared to the U.S. market share leaders FanDuel and DraftKings, which both report more than 3 million monthly active users apiece.
Wednesday’s report is the latest indicator BetMGM is still close to profitability from these existing and potentially future customers.
BetMGM generated $13.1 billion in handle in 2024, a roughly 33% increase compared to $10.9 billion in 2023. Net revenue grew from $1.9 billion to $2.1 billion between the two years, with revenues hurt by the strong 2024 for bettors.
EBITDA decreased from a loss of $62 million in 2023 to a decrease of $244 million in 2024 as BetMGM spent hundreds of millions investing in its platform. Hornbuckle said Wednesday that those investments are already paying off.
This was reflected by this year’s Super Bowl. February Super Bowl revenue reports from Nevada (where BetMGM is the largest sportsbook by market share) showed record hold percentages thanks to a Philadelphia Eagles win.
Bettors have increasingly wagered on individual player props, with some props garnering more handle than the traditional bets such as pointspreads and totals. Eagles’ star running back Saquon Barkley’s failure to score a touchdown, one of the most wagered upon bets, was another big boon for the books.
“Super Bowl LIX was the single biggest betting event in the history of BetMGM – it took the most bets, and was one of the best single game results in company history,” Christian Cipollini, BetMGM senior trading manager in a statement the day after the game.
