BetMGM has reported a slow start to 2026, with rising competition and new market pressures impacting growth and forcing the operator to guide towards the lower end of its full-year outlook.
On the iGaming Daily podcast, host Charlie Horner and SBC Americas News Editor Tom Nightingale reviewed the Q1 update, pointing to mixed performance. Net revenue rose 6% year-on-year to $696m, while adjusted EBITDA increased 11% to $25m. Both figures missed analyst expectations.
“I imagine there will be some internal disappointment at the sort of single-digit revenue growth,” Nightingale said, adding that performance is slightly below what the company had targeted.
The sportsbook segment remains under pressure, generating around $200m in revenue. In contrast, online casino delivered close to $500m despite operating in fewer states. The gap is pushing BetMGM to focus more on iGaming.
The operator is expanding its portfolio of branded casino content, launching titles linked to major entertainment IP such as Survivor, Friends and The Wizard of Oz. The strategy is aimed at attracting casual players and reducing reliance on sports betting performance.
BetMGM also highlighted future growth opportunities in Alberta and Virginia, where regulation is progressing.
At the same time, prediction markets are emerging as a serious competitor. Platforms such as Kalshi and Polymarket are increasing marketing spend and driving up customer acquisition costs.
BetMGM CEO Adam Greenblatt said these platforms are already competing aggressively for users. While they currently appeal to more experienced bettors, their influence is expected to grow.
BetMGM cannot currently enter the prediction market space due to regulatory constraints tied to co-owner MGM Resorts. This leaves it at a disadvantage compared to competitors like DraftKings and FanDuel, which are exploring the vertical.
Despite the challenges, MGM Resorts and Entain remain supportive of the joint venture, particularly as it has started to return dividends. However, limited flexibility around new products could restrict future growth.
