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BetMGM has delayed its goal of generating $500 million in annual adjusted EBITDA after prediction markets added new competition to the US online sports betting sector. Q2 revenue increased, but lower profitability and flat sportsbook revenue left the operator expecting 2026 results near the bottom of its guidance.
Good to Know
- Q2 net revenue increased 3% to $711 million.
- Adjusted EBITDA fell 15% to $74 million.
- iGaming supplied $483 million, or about 68% of quarterly revenue.
Prediction Markets Delay BetMGM Profit Goal
BetMGM no longer expects to reach $500 million in adjusted EBITDA during 2027. The operator now places that goal within the coming years, citing competition and regulatory complexity linked to sports prediction markets.
CEO Adam Greenblatt described prediction markets as the main outside challenge for the BetMGM sportsbook. Platforms such as Kalshi can offer sports event contracts under federal oversight, including in states where regular online sportsbooks cannot operate.
Traditional operators must obtain state licences, pay state betting taxes and follow local advertising rules. That difference has created an uneven competitive setup while courts and regulators decide whether sports event contracts fall under federal commodities law or state gambling law.
Nevada action against sports prediction contracts provided BetMGM with a more helpful regulatory example. The state has required restricted contracts to be blocked, supporting the argument that sports products should remain under state gaming oversight.
BetMGM still expects full-year net revenue of $2.9 billion to $3.1 billion and adjusted EBITDA of $300 million to $350 million. However, management now expects both figures near the lower end of those ranges.
Online Casino Revenue Carries Q2 Performance
Online sports betting revenue remained flat at $228 million during Q2. By contrast, iGaming revenue increased 8% to $483 million and accounted for nearly 70% of total revenue.
Greenblatt said: “our underlying player fundamentals remain healthy.”
He also expressed “confidence in the long-term outlook of our business.”
The revenue split gives BetMGM more protection than sportsbook operators with limited online casino exposure. Regulated iGaming remains available in far fewer US states than sports betting, but casino customers generally play more often and offer steadier margins across the year.
BetMGM said more than 60% of sportsbook customers also use gaming products in states where both services are legal. The operator plans to direct further investment toward those combined markets.
MGM Resorts properties provide another customer channel. BetMGM recruits thousands of players each week at MGM casinos, with Nevada serving as a major source of higher value accounts.
Additional growth plans include the regulated Alberta online gambling market, further Borgata development and product upgrades. BetMGM operates as a joint venture between MGM Resorts and Entain.
BetMGM Builds AI Leadership Team
BetMGM is also recruiting senior leaders to oversee wider use of artificial intelligence.
A Senior Vice President of Business Transformation and AI Strategy will guide projects across product, data, technology, finance, risk, operations and commercial teams. A Director of AI Platform and Portfolio Delivery will manage delivery and supporting systems.
The senior vice president role lists annual pay of $269,925 to $371,000, while the director position lists $176,240 to $230,000.
BetMGM expects AI to support faster decisions, operating efficiency and product development. However, management has not yet provided financial targets tied to the program.
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