BetMGM Reduces Projected 2026 Revenue Due To Poor Sports Betting Performance

BetMGM has trimmed 2026 revenue projections after the first quarter exposed weaker performance from its sports betting arm. The operator reported net revenue of $696 million for the three months to 31 March, representing a 6% increase year-on-year.

Growth came largely from online casino activity, where revenue climbed 9%. For sports betting, revenue rose at a slower pace by 4%.

Player-friendly outcomes and competition compress sportsbook returns

The company pointed to “player-friendly” sports results as a key factor behind its lower revenue. When bettors win at higher rates, operators pay out more, reducing margins even if wagering volumes are intact.

Average monthly active users also declined 9% year-on-year, suggesting that growth is no longer being driven by expansion alone.

Despite these pressures, adjusted EBITDA for the quarter rose 11% to $25 million supported by operational efficiencies and steady growth in iGaming verticals with higher margins.

Full-year outlook adjusted as focus shifts to disciplined growth

BetMGM expects full-year net revenue between $2.9 billion and $3.1 billion, down from its earlier projection of $3.1 billion to $3.2 billion. The company maintained its adjusted EBITDA guidance of $300 million to $350 million, though results are likely to land toward the lower end of this range.

Chief executive Adam Greenblatt said the company remains focused on “sustainable, profitable growth”, with emphasis placed on iGaming, multi-product markets and its Nevada base. He added, “Our iGaming business is growing at scale, and our Online Sports business continues to strengthen despite a challenging market in Q1.”

BetMGM stated that its reduced growth projections for 2026 are based on current trading conditions and investment discipline. But future performance will be supported by expansion into new jurisdictions, major global events such as the FIFA World Cup, and development of its omnichannel offerings. Its longer-term target is to reach $500 million in adjusted EBITDA by 2027.

iGaming strength and strategic shifts shape the operating model

Recent performance data reinforces iGaming’s integral role within the business. In Q3 of 2025, BetMGM generated $667 million in revenue, up 23% year-on-year. The company increased its full year financial forecast to $2.75 billion and $200 million in EBITDA by the end of 2025. 

Online gambling remained BetMGM’s biggest source of income, generating $454 million in net gaming revenue. This figure represents a 21% rise from the prior year and accounts for roughly two-thirds of overall revenue. Therefore, iGaming is dominating US markets with strict regulations. 

At the same time, the company is gradually phasing out credit card deposits across its US platforms. An official statement reiterated that customers can no longer add new credit cards to their accounts from 31 March 2026.

Due to an unprecedented poor performance in the sports betting division, BetMGM has lowered its revenue expectations for 2026. It will be interesting to see if the company’s revenue exceeds its new estimate for FY26.