Entain forecasts record earnings for BetMGM amid positive momentum

In the United Kingdom, the company Entain, which operates two prominent gambling brands, Ladbrokes and Coral, has recently experienced a significant boost in its stock price. This surge followed an upgrade in the annual earnings outlook for its US joint venture, BetMGM. Entain is in partnership with MGM Resorts International, and it now anticipates BetMGM will achieve full-year underlying earnings of no less than 100 million US dollars, which is approximately 73.8 million pounds. The upgrade is credited to strong performance in both sports betting and online gaming, reflecting positively in its stock market performance. The increase in earnings predictions reflects BetMGM's success in maintaining positive trading momentum since the start of 2025. Initially setting its revenue expectations between 2.4 billion dollars and 2.5 billion dollars, the firm has now raised this figure to a minimum of 2.6 billion dollars, around 1.9 billion pounds. This increase follows a successful first quarter, where BetMGM recorded an impressive 34% net revenue growth. These developments further underline the strengthening of BetMGM's business model and strategic direction. Entain has shown determination in capitalizing on the substantial opportunities ahead. The company is optimistic about continuing its growth trajectory, backed by revised strategic plans and performance indicators pointing toward a gradual increase in earnings before interest, taxes, depreciation, and amortization (EBITDA) to 500 million US dollars over the coming years. This optimistic outlook is set against a backdrop of operational enhancements and increased market share in the competitive US gambling landscape. However, despite these positive projections, Entain has faced challenges in recent years, particularly concerning legal matters that have affected its market value. The company recently incurred a 585 million pound penalty imposed by HM Revenue & Customs related to bribery allegations connected to its activities in Turkey. Additionally, the Australian financial crime regulator filed a lawsuit against Entain, accusing it of violating anti-money laundering laws. These legal complications have resulted in Entain's stock performance being volatile, having significantly dropped since reaching its highest market valuation in 2021.