BetMGM Shifts Focus To Higher-Value US Markets Amid Rising Competition

BetMGM is directing more investment towards higher-value customers and markets as competition intensifies across the US sports betting sector.

Chief executive Adam Greenblatt said the operator is becoming more selective about where it deploys capital, prioritising markets and customer segments that offer stronger returns. The strategy involves a stronger focus on iGaming, multi-product states, Nevada and Alberta, plus higher-staking sportsbook customers.

BetMGM Prioritises IGaming, Multi-Product States And Higher-Staking Players

BetMGM is reducing investment in lower-return online sportsbook-only markets while concentrating on areas where it can generate stronger customer value. The operator held approximately 8% of the US sports betting market and 20% of gaming, giving it an overall 14% share across its active markets.

“Consistent with our strategy, we’ve remained nimble and disciplined, leaning into better MGM strengths and where we can achieve the most attractive returns,” Greenblatt said. “This has seen us increase our focus on iGaming, multi-product states, Nevada, and most recently Alberta, as well as higher value, higher staking players, particularly in online sports betting (OSB), while also reducing investment in certain lower return OSB-only markets.”

Greenblatt noted that the approach had helped BetMGM maintain its market position despite lower marketing expenditure.

Lower Acquisition Costs Improve Marketing Efficiency And Payback

The operator’s more targeted approach has also improved customer-acquisition efficiency. Greenblatt said BetMGM had seen a meaningful reduction in acquisition costs in recent months.

“What’s been very good for us in recent weeks, since the back end of the World Cup, is the acquisition environment has improved a lot,” he said. “Our cost per acquisition has meaningfully reduced, and our predicted returns, as measured in months to payback; we haven’t seen returns this favourable since the beginning of the year and the back end of last year.”

Macquarie analysts said the operator was benefiting from better acquisition economics, lower customer-acquisition costs, payment-processing improvements and operating leverage. They also noted that returns were among the strongest seen in several quarters, despite reduced OSB marketing spend.

BetMGM’s strategy reflects a shift from market-share expansion towards profitable growth. Prioritising iGaming, multi-product states and higher-value customers can improve returns, but it may also reduce the operator’s visibility in lower-value markets. Stable market share despite reduced marketing spend suggests the approach is working.