BetMGM said second-quarter revenue rose 3% year over year to $711 million as growth in iGaming offset pressure in sports betting and retail operations. The company, jointly owned by MGM Resorts International and Entain (LON:ENT), reported adjusted EBITDA of $74 million for the quarter and $99 million for the first half of 2026.
Chief Executive Officer Adam Greenblatt said the quarter was “a little lighter than expected,” but characterized the results as continued progress toward profitable growth. First-half revenue totaled $1.4 billion, up 4% from a year earlier, while the company generated $77 million in adjusted EBITDA less capital expenditures, which it described as its best proxy for cash available to parents.
Guidance Maintained, With Results Expected Near Low End
The company cited heightened competition from both regulated operators and prediction-market platforms, as well as broader pressure on consumer discretionary spending. Greenblatt said the primary macro issue affecting online sports betting was prediction markets, though he also pointed to higher gas prices and challenges in separating the effects of different consumer pressures.
Despite those headwinds, BetMGM said it is preserving investment in its stronger markets while cutting back in lower-return sports-betting-only states. In particular, the company is focusing its marketing spending on multi-product states, where sports betting customers can be cross-sold into iGaming.
Greenblatt said more than 60% of sports bettors in those states cross-sell into gaming, and that BetMGM would continue to invest “full throttle” in both sports and gaming in those markets.
iGaming Growth Offsets Flat Online Sports Revenue
iGaming revenue rose 8% year over year to $483 million in the quarter, supported by player-management improvements and engagement. Net gaming revenue per active player increased 7%, while active-player levels remained stable despite new competitors entering some markets.
Nearly 70% of BetMGM’s revenue comes from iGaming, Greenblatt said. The company highlighted exclusive game releases, including Game of Thrones titles in Ontario, as well as additions to the Rakin’ Bacon, Buffalo Triple Power and Money Gong franchises. It also introduced Elvis Presley: Viva Las Records and Marilyn Monroe Slingo.
Management said the iGaming environment remains highly competitive. Greenblatt said BetMGM’s iGaming customer-acquisition costs were more than 15% higher than a year earlier, partly reflecting new entrants in established markets such as Michigan. He also cited new know-your-customer requirements in Pennsylvania that add friction to player onboarding.
BetMGM launched in Alberta during the quarter and said early performance was encouraging. Nearly 10% of new Alberta players had an existing relationship with MGM, according to Greenblatt. The company did not include potential upside from Alberta in its guidance.
Sports Betting Strategy Prioritizes Value Over Volume
Online sports betting revenue was flat year over year at $228 million. BetMGM reported that handle per active player grew 11% and net gaming revenue per active increased 9%, while average monthly active users declined as expected under the company’s more selective customer-acquisition strategy.
Greenblatt said BetMGM has reduced marketing spending in sports-only states and shifted resources toward customers and channels with more attractive returns. Promotions rose year over year, he said, because the company increased reinvestment in higher-value players during the World Cup while scaling back investment in less valuable portions of its customer base.
The World Cup generated three times as much betting handle as the 2022 tournament, according to Greenblatt. He said wagers on the United States-Belgium match exceeded those on any baseball or basketball playoff game and any World Series game. Management said it expects soccer to become a more significant betting category and believes the tournament helped sustain customer engagement through the summer ahead of football season.
Retail performance was weaker, however, as several high-stakes player wagers were successful at company-operated sportsbooks. Chief Financial Officer Gary Deutsch said retail generated “basically zero revenue net” during the second quarter, reflecting greater concentration among high-end VIP players as lower-staking customers migrate to digital channels. The company expects retail results to normalize over time.
Cost Measures Expected to Support Second-Half Profitability
Management expects more than 100% profit flow-through in the second half as marketing reductions, normalized tax comparisons and cost initiatives take effect. Deutsch said initiatives span staffing, vendors and other direct costs. For the full year, BetMGM expects EBITDA flow-through of 70% or more, above its longer-term normalized expectation of roughly 40% to 45%.
BetMGM said it sees a path to more than $500 million in adjusted EBITDA from its existing footprint, based on anticipated gaming growth, cost discipline and normalized flow-through rates. However, Greenblatt said the target would likely be reached after 2027.
Looking ahead, management identified Virginia, Washington, D.C., and Indiana as states where future iGaming legalization could create additional opportunities. It also said restrictions on prediction-market activity could benefit licensed online sports-betting operators, with any benefit likely tied broadly to market share in affected states.
About Entain (LON:ENT)
Entain plc (LSE: ENT) is a FTSE100 company and is one of the world’s largest sports betting and gaming groups, operating both online and in the retail sector. The Group owns a comprehensive portfolio of established brands; Sports brands include BetCity, bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds, Sportingbet, Sports Interaction, STS, SuperSport and TAB NZ; Gaming brands include Foxy Bingo, Gala, GiocoDigitale, Ninja Casino, Optibet, Partypoker and PartyCasino. The Group owns proprietary technology across all its core product verticals and in addition to its B2C operations provides services to a number of third-party customers on a B2B basis.
The Group has a 50/50 joint venture, BetMGM, a leader in sports betting and iGaming in the US.
