The first quarter of 2025 saw revenues and profits jump considerably for igaming operators across the USA, with massive year-over-year (YoY) increases from Q1 in 2024.
While there is no surprise to the continued profitability of online casino gaming, the profitability of online sports betting was surprising considering the challenges to the industry with a March Madness and an NFL season that was unfavorable to books.
IGaming First Quarter Profits
BetMGM's first-quarter business update was the first book to show signs of a strong Q1 in the industry, with a 34% YoY increase in revenues thanks to huge jumps in iGaming and online sports gambling. iGaming's net revenues for Q1 jump 27% to $443 million while revenues for online sports gambling moved up 68% to hit $198 million.
The company highlights "cross-sell" engagement as a factor in Q1's success, meaning their sports gambling players use the company's top-rated BetMGM Casino.
Caesar's digital platform, which includes both igaming and online sports, saw net revenues move up 18.8% to hit $335 million in Q1 of 2025, which was a Q1 record.
Flutter, FanDuel's parent company, saw an 8% growth in net revenue YoY in Q1 to $3.6 billion. The leader in online sports gambling in the US saw its revenues increase thanks to a larger handle, a byproduct of poor results in March Madness and in the NFL that favored players.
Bad But Still Good NCAA And NFL
Bettors typically take favorites during the March Madness tournament, so books clean up when underdogs eventually win, but this time around, few dogs won. Favorites swept the board through the Sweet Sixteen and Elite Eight, going 21-0.
The same story happened in the NFL with favorites going 195-77 through the 2024 season. But still, books ended the quarter in the black thanks to the nature of sports betting.
Players took all those winnings and kept betting, recycling a good March Madness and NFL season into more bets. Flutter notes that its increased revenues are due to its handle increasing by 8% in Q1.
Outlook For The Rest Of 2025
Operators continue to be bullish on the 2025 financial year. Flutter still believes it can see an EBITDA above $1 billion for 2025 despite having to spend big to enter the latest US state to legalize sports gambling, Missouri, and enter the latest Canadian Province to legalize sports gambling, Alberta.
Flutter isn't the only operator with a bullish attitude to 2025; BetMGM mimics their sentiments, stating they believe EBTIDA will remain positive and see net revenues of at least $2.4 billion.
