DAVY VIEW

BetMGM’s FY25 revenue and aEBITDA came in slightly ahead of the upgraded guidance issued at the Q3 stage. Importantly, the JV has returned $270m to its parents versus prior guidance of >$200m. For FY26, guidance is in line with our expectations and consensus. BetMGM has also narrowed the timeline for achieving $500m of EBITDA to 2027. The market has clearly been extremely concerned around the potential impact of Prediction Markets on regulated online sports betting. Although BetMGM is weighted to iCasino, our conversation with the company indicated that it expects a relatively even balance between sports and iCasino growth in 2026. This should reassure a very nervous market.