iGaming Weekly Recap (May 5–11, 2025): Earnings Season
The past week was especially intriguing for financial reports and earnings calls from major players in the U.S. iGaming industry. Naturally, there were comments on prediction markets. On top of that, HG Vora is suing PENN Entertainment, hopes for sports betting legalization in Oklahoma have fizzled out, and Florida failed to ban sweepstakes casinos. In today’s Weekly Recap, we dive deeper into the results of several key companies.
No major surprises here: FanDuel expressed interest in prediction markets during its Q1 2025 earnings call. The company can leverage the expertise of its parent, Flutter, particularly from Betfair. CEO Peter Jackson and CFO Rob Coldrake noted that FanDuel has the internal know-how to evaluate this opportunity. While unsure if prediction markets will spark significant demand in current legal sports betting states, FanDuel is exploring various entry strategies and sees potential in new, unregulated markets. They stressed that parlays remain the core offering, and prediction markets won’t alter their pricing strategy.
The attempt to legalize sports betting in Oklahoma in 2025 has failed. The Senate adjourned without voting on bills approved by the House. Divisions among lawmakers, Native American tribes, and Governor Stitt, who threatened a veto, blocked agreement on the market’s structure. Various bills, from those favoring tribal exclusivity to hybrid and free-market models, lacked sufficient support, leaving Oklahoma without legal sports betting.
Colorado House Bill 1311 (HB1311), aimed at changing sports betting taxation by eliminating deductions for free bets from taxable revenue, passed the Senate with amendments but stalled due to the legislative session’s adjournment, awaiting House approval of the changes. The bill’s primary goal is to boost tax revenue from sports betting, earmarked largely for funding water resource projects, potentially adding millions to state coffers annually. The legislative process sparked mixed reactions, with betting operators wary of impacts on promotional tools, while supporters stress the need for better funding of critical public projects.
HG Vora Capital Management has filed a lawsuit against Penn Entertainment, accusing the company of manipulating the number of board seats available for election at the upcoming annual shareholder meeting. The plaintiff claims this move is a tactic to block its own board nominations and preserve Penn’s current board composition. HG Vora, holding a significant stake, argues that Penn’s actions violate shareholder rights and fiduciary duties, taken in response to dissatisfaction with Penn’s financial performance, particularly tied to the ESPN Bet venture. The lawsuit seeks to restore a higher number of electable board seats.
Two Florida legislative proposals aimed at banning sweepstakes (SB 1404 and HB 1467) failed to pass during the session. This marks another major victory for such platforms this year. The bills sought to outlaw promotional lottery casinos and restrict online sports betting beyond the Seminole Tribe’s Hard Rock platform. Their failure was welcomed by industry associations and aligns with a broader national trend where similar measures have also stalled in other states, though Montana has a pending bill on the issue.
Bonus: Earnings Season and Much More
Before diving into the numbers shared by the industry’s biggest players this week, let’s review a few other events from the past week that also deserve attention. First and foremost, the CFTC dropped its lawsuit against Kalshi over election betting, and the matter is now fully resolved. It was only a matter of time, but we now have confirmation that the last line of dispute, initiated by the CFTC under the Biden administration, has been closed. That said, we wouldn’t read too deeply into this for broader prediction market implications.
Last week’s Guardian bombshell about a potential bet365 sale is gaining traction. Media outlets have started speculating about possible buyers. Names in the mix include private equity giants like Apollo and Blackstone, as well as U.S. sports betting operators such as DraftKings and MGM Resorts.
Other noteworthy news: Play’n GO officially confirmed it will not supply products to sweepstakes casinos or unregulated platforms. In Rhode Island, discussions continue over a bill that would end IGT’s monopoly in the state. Meanwhile, Stake.US faces a lawsuit in Alabama while opening a new office in Washington, D.C. On the personnel front, Bill Hornbuckle will stay on as CEO, extending his contract with MGM Resorts through 2028, and Relax Gaming secured a valuable addition with Angela van den Berg as General Counsel.
Now, let’s get to the numbers…
Genius Sports kicked off 2025 with a strong performance. Group revenue rose 20% year-over-year to $144 million. The company slashed its net loss by 68% to $8.2 million, while adjusted EBITDA soared 188% to $19.8 million. The betting technology, content, and services segment drove growth, with a 44% revenue increase, fueled largely by price hikes during contract renewals with existing clients.
“This quarter demonstrates the strong execution of our strategic objectives, as we continue our technology distribution, product innovation, and commercial momentum,” said CEO Mark Locke.
Genius Sports also announced key strategic moves, including an exclusive NCAA data deal for March Madness and postseason tournaments through 2032 and the launch of BetVision for soccer. Despite these positive results and significant improvements, the company still recorded a net loss this quarter. Genius Sports reaffirmed its full-year 2025 financial outlook.
Flutter’s Q1 2025 financial results showed revenue of $3.67 billion, an 8% increase from $3.40 billion the previous year. Despite solid growth, the results fell short of analyst expectations, which forecasted revenue of $3.96 billion and an adjusted EPS (earnings per share) of $2.05, while Flutter achieved $1.59.
“I am pleased with the performance of the business during the first quarter, with the scaling of our US business driving a step change in the earnings profile of the Group,” said CEO Peter Jackson.
Net profit soared 289% to $335 million (compared to a $177 million loss a year earlier), and adjusted EBITDA rose 20% to $616 million. The U.S. operations (FanDuel) drove the most growth, with revenue up 18% to $1.666 billion and adjusted EBITDA skyrocketing 519% to $161 million, showcasing strong operational leverage.
The international segment saw stable revenue, though Brazil posted a notable decline. Cash flows dipped (net operating cash down 44% and free cash flow down 52%), which Flutter attributed mainly to settlement issues tied to player deposit timing.
In Q1 2025, Light & Wonder (L&W) reported revenue of $774 million, a 2% year-over-year increase, marking its 16th consecutive quarter of consolidated revenue growth. Consolidated AEBITDA rose 11% to $311 million, achieving a 40% margin. Cash flow from operating activities grew 8% to $185 million, and free cash flow increased 19% to $111 million.
“As we outlined in the previous earnings call, growth in 2025 is expected to progress and weigh towards the second half of the year,” said CEO Matt Wilson.
Despite these gains, the results fell short of Wall Street expectations; revenue missed forecasts by $32.04 million against an expected $806.04 million, and earnings per share (EPS) of $0.94 was below the anticipated $1.11. This shortfall led to a 2.52% drop in shares after hours. CEO Matt Wilson noted that growth in 2025 is expected to be more pronounced in the second half of the year.
PENN Entertainment reported a significant financial turnaround, swinging from a $114.9 million net loss in Q1 2024 to a $111.5 million net profit. Total company revenue reached $1.6725 billion, with adjusted EBITDA climbing to $173.3 million from $101.4 million. Adjusted EBITDAR also rose to $329.2 million from $256.2 million.
“PENN’s properties demonstrated strong resilience. Core business trends were stable, particularly in markets not impacted by new supply,” said CEO Jay Snowden
Diluted earnings per share hit $0.68, a sharp improvement from a $0.76 loss a year earlier. This progress was driven by a resilient retail segment, which showed strong momentum despite early weather disruptions, and the interactive segment, which saw substantial growth, particularly in iCasino, signaling a path to profitability. The interactive segment posted an $89 million adjusted EBITDA loss, but this was a $107 million improvement from Q1 2024. The retail segment generated $1.3018 billion in revenue and $457 million in adjusted EBITDAR, while the interactive segment contributed $290.1 million in revenue before tax adjustments.
DraftKings reported a 20% revenue increase to $1.41 billion (precisely $1.4088 billion) compared to $1.175 billion in Q1 2024. Adjusted EBITDA surged to $102.63 million from $22.39 million, and the net loss shrank to $33.86 million from $142.57 million.
“Recent product enhancements are driving outperformance,” said CEO Jason Robins
The Sportsbook segment generated $881.96 million in revenue (up 20.1%), while iGaming brought in $423.47 million (up 14.5%). The company also saw a 26% rise in monthly unique paying players (MUPs) to 4.3 million. Despite strong results, DraftKings lowered its full-year 2025 guidance due to unfavorable Sportsbook outcomes in the NCAA tournament.
What’s Worth Reading?
Beyond the flood of industry news and financial reports, US iGaming Hub published two standout articles this week.
- Together with Val C. Martinez, founder of Betting Ladies, we explored the topic of women bettors and the massive potential they represent for sports betting and online casino operators.
- Soft2Bet’s CPO Yoel Zuckerberg shared insights into the launch of ToonieBet in Ontario.
That wraps up this week’s Weekly Recap. For more industry news, numbers, and analysis, follow US iGaming Hub and be sure to keep up with our weekly newsletter!
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