BetMGM revenue rises as earnings fall and target slips

BetMGM, the Entain and MGM Resorts joint venture, reported second-quarter net revenue of $711m, up 3% year-on-year, while adjusted EBITDA fell 15% to $74m. The operator now expects full-year results toward the lower end of guidance and said its $500m adjusted EBITDA target will likely land beyond 2027 amid prediction-market pressure.

Key Takeaways

• Q2 net revenue hit $711m (+3%), with iGaming up 8% to $483m and online sports flat at $228m.
• Adjusted EBITDA dropped 15% to $74m; first-half revenue rose 4% to $1.41bn as EBITDA fell 9% to $99m.
• Average monthly active users fell 3% to 875,000 as BetMGM took a more disciplined approach to customer acquisition.
• Full-year guidance is intact but toward the low end: $2.9bn–$3.1bn revenue and $300m–$350m adjusted EBITDA.
• The $500m adjusted EBITDA goal is now expected beyond 2027, citing prediction-market complexity.

What drove BetMGM's second-quarter results?

According to Sharecast, Entain and MGM Resorts' BetMGM posted $711m in Q2 net revenue, up from $692m a year earlier. An 8% rise in iGaming revenue to $483m offset flat online sports revenue of $228m.

Online sports handle was buoyed by tentpole events including the World Cup and NBA Playoffs, but higher player generosity kept sports revenue in line with last year. CEO Adam Greenblatt called it "another quarter of focused execution," though one that "came in a little lighter."

Greenblatt said he was pleased with World Cup engagement, noting "a massive increase in fandom" that he expects will drive handle growth over the longer term. For more market and wealth coverage, see BlasterPost's Net Worth & Wealth section.

Why did earnings fall if revenue rose?

Adjusted EBITDA declined 15% year-on-year to $74m from $86m, even as top-line growth held. First-half net revenue rose 4% to $1.41bn, while adjusted EBITDA slipped 9% to $99m. Parent fees were $15m in the quarter and $18m in the half.

Average monthly active users fell 3% in Q2 to 875,000 from 901,000, reflecting a more disciplined approach to customer acquisition and management. BetMGM still cited a 13% gross gambling revenue market share in active markets, including 20% for iGaming and 8% for online sports.

When will BetMGM hit $500m adjusted EBITDA?

BetMGM said it remains on track for FY 2026 guidance but toward the lower end of existing ranges—net revenue of $2.9bn to $3.1bn and adjusted EBITDA of $300m to $350m. Support cited includes Borgata's brand refresh, World Cup momentum, and Alberta's commercially regulated iGaming launch.

The group also said its target of $500m in adjusted EBITDA is now likely beyond the previous 2027 expectation. Management pointed to the current US market environment and regulatory complexity surrounding prediction markets, with Greenblatt referring to competitive pressure "from unregulated operators."

Still, Greenblatt said BetMGM is "well positioned to deliver profitable, sustainable growth and generate over $500m of adjusted EBITDA in the coming years," and argued that future iGaming legislation or prediction-market restrictions would represent further upside. At 1546 BST on the update day, Entain shares were up 0.17% at 575.4p.