BetMGM has pushed back its target of $500 million in annual adjusted EBITDA, dropping the fiscal 2027 deadline it had named and now pointing to 'the coming years'. Regulatory uncertainty around prediction markets and tougher competition are behind the change.
Second-quarter revenue rose 3% year over year, but adjusted EBITDA fell 15% to $74 million from $86 million. Across the first half the measure was down 9%. Online sportsbook revenue was flat at $228 million while iGaming added 8%. Guidance for 2026 stands at net revenue of $2.9–3.1 billion and adjusted EBITDA of $300–350 million, though the company now expects to land at the low end of both ranges.
'Competition is tough, it's not easy right now,' CEO Adam Greenblatt said on the quarterly call. He named prediction markets as the main external challenge for the online sportsbook, adding that gas prices and consumer disposable income also weigh, and that separating those effects is difficult.
iGaming and Nevada
iGaming brings in close to 70% of revenue, Greenblatt said. BetMGM is counting on MGM Resorts' land-based network to recruit high-value customers, particularly in Nevada, where thousands of players sign up weekly at MGM properties. Nevada's move to geoblock event contracts on prediction markets is seen as positive for traditional online sportsbooks. More than 60% of sportsbook customers also buy gaming products.
The route to $500 million in EBITDA runs through gaming growth, cost control and a historical flow-through of 40–45%. Alberta's new regulated market, product improvements and expansion of the Borgata brand are named as drivers.
BetMGM is also hiring two executives for an AI transformation: an SVP of Business Transformation and AI Strategy at $269,925–371,000 and a Director of AI Platform and Portfolio Delivery at $176,240–230,000. 'AI, I think, will over time become a fundamental disruptor,' Greenblatt said.
