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BetMGM has revised its financial expectations for 2026 after a first quarter shaped by strong bettor performance and intensifying competition in the U.S. online gambling market. The operator, jointly owned by Entain and MGM Resorts, reported modest growth in early 2026 but acknowledged pressures affecting its sports betting segment.
The company now projects annual revenue between $2.9 billion and $3.1 billion, lower than its previous estimate of $3.1 billion to $3.2 billion. While the forecast for adjusted core profit remains unchanged at $300 million to $350 million, expectations have shifted toward the lower end of that range.
First-Quarter Performance Reflects Competitive Pressures
During the first three months of 2026, BetMGM generated $696 million in net revenue, marking a 6% increase compared to the same period last year. Growth came from both iGaming and online sports betting, though gains were relatively modest.
Online casino operations delivered stronger results, with revenue rising 9% to $481 million. Sports betting revenue reached $203 million, reflecting a 4% increase. Overall betting activity also ticked up, with total handle climbing 3% to $4.2 billion, supported by major events such as the Super Bowl, March Madness, and the Olympics.
Despite these gains, bettor-friendly outcomes significantly impacted profitability. When players win more frequently, operators face higher payout obligations, reducing margins. BetMGM also increased promotional spending as competition intensified across the sector.
According to Reuters, CEO Adam Greenblatt acknowledged the mixed performance, stating: “Although it has been a steady start to the year, BetMGM is delivering on our strategic plan, carrying forward the initiatives that drove our transformation in 2025.”
He added: “We are generating sustainable, profitable growth and paying cash to our parent companies. Our iGaming business is growing at scale, and our online sports business continues to strengthen despite a challenging market in Q1.”
Adjusted EBITDA rose to $25 million from $22 million a year earlier, reflecting an 11% increase. However, average monthly active users declined by 9%, a change the company attributed to a more selective approach to customer acquisition and retention.
Marketing Strategy Shifts Amid Rising Costs
BetMGM is adjusting how it allocates marketing resources as customer acquisition becomes more expensive. The expansion of prediction markets has contributed to higher advertising costs and longer timelines to recover those investments.
Greenblatt explained that these market dynamics influenced first-quarter results, saying they were “slightly below expectations due to a combination of player friendly sports results and marketplace conditions, including intensifying competitive dynamics.”
To manage spending, the company is directing more marketing investment toward states where online casino gaming is available, rather than focusing solely on sports betting markets. This approach reflects stronger margins and more stable growth in iGaming.
Greenblatt also highlighted ongoing legal uncertainty around prediction markets, stating: “We look forward to an expedient outcome of the almost inevitable hearing of the pro states rights, pro tribal rights, and anti prediction markets case by [the U.S. Supreme Court]. In the meantime, we’re refining our approach to OSB marketing for the rest of the year under the assumption that current media conditions persist.”
At the same time, BetMGM has been refining its customer base strategy. The company has reduced promotional incentives for lower-value recreational players while concentrating on higher-value customers. This shift has resulted in fewer active users but increased revenue per player. In sports betting, active users dropped 16%, while both handle and revenue per active user rose significantly.
Greenblatt emphasized the resilience of this segment, stating: “We’re actually seeing the more premium parts of our database incredibly resilient,” adding, “… Actually, I think the impact of our strategy is proving to be correct, or appropriate, or resilient in these more turbulent times.”
Outlook Hinges on iGaming Growth and Market Expansion
Looking ahead, BetMGM continues to rely on its online casino business as a primary growth driver. The company reported a 13% gross gaming revenue market share across its 23 sports betting states and four iGaming jurisdictions, with online casino operations accounting for a larger portion of that share.
The operator is also preparing for potential expansion opportunities, including a planned launch in Alberta and increased activity tied to major global sporting events. It is also investing in product development, including live casino offerings and branded slot games.
Greenblatt expressed confidence in long-term targets despite near-term challenges. “Our underlying fundamentals are healthy and growing, and we’ve built the business to ensure that we are nimble and rational allocators of capital between our iGaming and sports businesses,” he said.
He further noted the company’s positioning within the industry: “And, as an iGaming-first operator who’s approaching $2 billion of annual iGaming revenue, we are better positioned than most, if not all others, from the ever-escalating noise of prediction markets present in the market.”
BetMGM continues to aim for $500 million in adjusted EBITDA by 2027, supported by expansion, product innovation, and a shift toward higher-value customers. Greenblatt acknowledged potential risks but maintained optimism: “Now, are there risks? Sure. But do we remain confident that that is achievable? Yes.”
The company’s updated outlook reflects both the rapid growth of the U.S. betting market and the challenges that come with increased competition, regulatory pressure, and evolving consumer behavior.