By TheNuts - Jul 29, 2026
Due in part to heightened competition from
prediction markets, BetMGM no longer anticipates meeting its $500 million annual EBITDA target next year.
BetMGM maintained its 2026 guidance but now forecasts around the lower end of that range, according to the mixed findings released Tuesday morning by the joint venture of MGM Resorts and Entain. CEO Adam Greenblatt pointed out that both legal and uncontrolled competition, including prediction markets, are putting more pressure on businesses.
According to Greenblatt, BetMGM can eventually reach $500 million in annual EBITDA running as is, but that goal is no longer anticipated to be reached next year. This is different from Greenblatt's statement during the first quarter call that the $500 million objective was still in place for 2027.
According to Greenblatt, there is currently intense rivalry in both sports betting and online casinos, but prediction markets are the main cause of the decreased income projections.
He remarked, "It's hard out there." However, I believe that prediction markets are the main macro impacts, at least on the OSB side. Naturally, the current state of petrol prices and consumer discretionary income also doesn't help, but it is extremely difficult to distinguish between those influences. Prediction markets, in my opinion, are the main
The cost of acquiring new clients has increased by about 15% from the previous year due to new competitors, such as Hard Rock Bet's entry into Michigan and Ontario.
"As new players enter the market, their ability to compete and make an impact is very challenging, especially in established markets," stated Greenblatt. It's difficult. In order to establish a beachhead, we are witnessing some of the new entrants spending in expansion and in players in, to be honest, less commercially reasonable ways. In light of this, we are truly thrilled with our company's tenacity, the tenacity of our player base, and the business's ongoing growth.
After the World Cup, Greenblatt believes that soccer may be a real source of consumers and eventually handle. He said that bets on the U.S.-Belgium match exceeded those on any MLB or NBA playoff game, and BetMGM received three times as much activity this year as it did in 2022.
Greenblatt remarked, "I'm really, really happy with how this World Cup has gone." We observed a significant rise in fandom, which is fundamental for our category, as you are aware. That is the primary motivator for continued participation and wagering, and it will undoubtedly manage growth over time.
"The emergence of a new sport that could eventually rival the big three in the US is what we've seen and what we hoped for in anticipation of the World Cup."
Greenblatt then observed that Gary Deutsch, his American CFO, was making fun of him for stating that, pointing out that Greenblatt had forgotten about the NHL.
Greenblatt answered, "I think soccer's ahead now." "As we look to the future, soccer is a real sports category that is growing, and I think that's tremendously exciting as a feeder to our sector."
Although BetMGM's retail division is rarely discussed during conference calls, a goose egg in the revenue column for the second quarter necessitated an explanation.
These days, retail sports betting tends to favor VIPs and more affluent players, while lower-class consumers are still moving online. In contrast to $16 million in income for the same period last year, a number of sizable bets won during the second quarter, resulting in $0 in revenue.