TLDR
- BetMGM’s Q2 2026 net revenue grew just 3% to $711 million, missing estimates
- Adjusted EBITDA fell 14% year over year to $74 million
- Executives say prediction market operators are hurting customer acquisition
- Retail sportsbook revenue nearly disappeared, dropping 97% from last year
- The company pushed its $500 million EBITDA target past 2027
BetMGM released its second quarter 2026 results on July 28. The company is a joint venture between MGM Resorts International and Entain.
Net revenue came in at $711 million. That is a 3% increase from $692 million a year earlier.
Adjusted EBITDA dropped 14% to $74 million, down from $86 million in the same quarter last year. The results fell short of Entain’s own consensus estimate.
Growth has slowed sharply. In the second half of 2025, BetMGM’s revenue grew 31%. This quarter’s 3% growth shows a steep drop in momentum.
iGaming Keeps the Business Steady
Online casino games, known as iGaming, remain BetMGM’s strongest segment. Revenue there rose 8% to $483 million, making up close to 70% of total revenue.
The company credited new game releases for the growth. These included titles tied to Game of Thrones, Elvis Presley, and Marilyn Monroe.
Sports betting told a different story. Revenue stayed flat at $228 million even though total betting handle rose 2%.
The gap came from how much BetMGM paid out to winning customers. Net gaming revenue margin slipped slightly, meaning the company kept a smaller share of each dollar wagered.
Retail sportsbook revenue was hit hardest. It fell 97% compared to last year, landing at close to zero for the quarter.
Executives said high paying customers won big bets during the quarter. They also said many casual bettors have shifted to mobile apps instead of visiting physical locations.
Prediction Markets Add Pressure
CEO Adam Greenblatt told analysts that prediction markets are the main reason the company lowered its outlook earlier this year. He said rival companies are spending heavily to attract new bettors in ways he called financially unwise.
Average monthly active players fell 3% to 875,000 during the quarter. That follows a 9% drop in the first quarter of 2026.
Analyst Jordan Bender at Citizens wrote that prediction market companies appear to be slowing BetMGM’s ability to bring in new sports bettors. Greenblatt said the company has no plans to launch its own prediction markets product right now.
Costs to acquire new iGaming customers rose about 15% compared to last year. Greenblatt said BetMGM will keep spending on promotions but wants that money going to the right customers.
The company kept its full year guidance range the same. But it now expects results near the lower end of that range, which spans $2.9 billion to $3.1 billion in net revenue.
BetMGM had already cut this guidance once earlier in the year. The company also said its long term goal of $500 million in adjusted EBITDA will now take longer than the previously stated 2027 timeline.
MGM Resorts stock closed at $46.20 on July 28, down slightly from the prior day. The stock has limited room to move because of an $18 billion buyout offer already on the table.
Entain shares traded at 575.20p on July 29, up slightly from the previous close. MGM Resorts reports its full quarterly results after markets close on July 29.
