BetMGM Sports Betting Revenue Jumps in Q1, Yet EBITDA Outlook Dims
BetMGM sports betting delivered strong first-quarter results in 2026, yet the operator simultaneously reduced its full-year revenue projections. The company reported Q1 net revenue of $696 million, marking a 6% year-over-year increase, while adjusted EBITDA reached $25 million. iGaming revenue climbed to $481 million, reflecting a 9% rise, and mobile sports betting generated $203 million, up 4%. Despite these gains, BetMGM trimmed its 2026 revenue outlook to $2.9 billion to $3.1 billion while maintaining adjusted EBITDA guidance of $300 million to $350 million.
BetMGM Reports Q1 Revenue Growth Amid Mixed Results
The joint venture between MGM Resorts International and Entain posted Q1 net revenue of GBP 552.74 million, representing a 6% increase from GBP 521.76 million in the prior year period. iGaming operations drove the majority of growth, generating GBP 381.99 million in net revenue with a 9% year-over-year gain. Online sports betting contributed GBP 161.21 million, reflecting a more modest 4% increase.
Adjusted EBITDA reached GBP 19.85 million during the quarter, marking an 11% improvement from GBP 17.47 million in Q1 2025. Sports betting handle climbed 3% to GBP 3.34 billion, while BetMGM sports betting maintained a podium position with 13% gross gaming revenue market share across active markets. The operator held 20% of the iGaming market and 7% of online sports.
Average monthly active users declined 9% year-over-year to 975,000, which BetMGM attributed to disciplined customer acquisition and refined player management strategies. The company cited player-friendly sports results and increased promotional activity in a competitive market environment as factors softening online sports growth.
Retail and other operations generated GBP 8.74 million, down 43% from GBP 15.88 million in the previous year.
What Caused BetMGM to Lower Its 2026 Revenue Guidance?
BetMGM revised its full-year 2026 net revenue guidance to GBP 2.30 billion to GBP 2.46 billion, down from the previous range of GBP 2.46 billion to GBP 2.54 billion. The company maintained its adjusted EBITDA guidance of GBP 238.25 million to GBP 277.96 million but expects results toward the lower end of that range.
CFO Gary Deutsch indicated the factors behind the revenue guidance reduction were distributed between the first quarter and the remainder of the year, noting that sports performance in Q1 was driven by poor results for the house. BetMGM sports betting faced player-friendly outcomes that squeezed margins by driving up payouts for punters.
In addition, CEO Adam Greenblatt pointed to a significant increase in customer acquisition costs for sports betting. Companies describing themselves as prediction markets have been purchasing sports betting keywords and sports media advertising, consequently bidding up acquisition costs and extending payback periods.
BetMGM plans to protect EBITDA guidance by reducing marketing in broader online sports betting-only states and reallocating spend toward areas with better returns. Greenblatt added the company will prune the least efficient pockets of spend and reallocate capital to where paybacks are strongest. Handle per active player rose 23% and net gaming revenue per active increased 25% versus last year, reflecting a shift toward higher-value players.
How Does BetMGM Plan to Reach $500M EBITDA by 2027?
Strategic focus areas underpin BetMGM’s pathway to achieving GBP 397.08 million adjusted EBITDA in fiscal 2027. The operator identified iGaming, multi-product states, omnichannel capabilities in Nevada, and servicing premium mass sports players as core pillars[38].
Alberta represents a significant expansion opportunity, with BetMGM confirmed to launch iGaming and online sports betting on July 13, 2026. This marks the operator’s first new iGaming jurisdiction since 2022. Virginia’s potential iGaming legalization offers additional upside, though CEO Adam Greenblatt noted the process from legislation to market launch typically spans nine months, limiting 2026 financial impact.
Nevada’s omnichannel position provides substantial growth potential. Greenblatt indicated the digital business in Nevada could double in size. The state delivered 5% of overall net revenue in 2025 despite being sports-only, with combined digital and retail handle growing 26% year-over-year and net revenue climbing 65%.
BetMGM partnered with Enteractive to enhance customer reactivation efforts, targeting non-funded registrations and lapsed accounts through personalized engagement strategies. The operator is refreshing its Borgata casino brand to appeal to different demographics in the Northeast market.
Exclusive content partnerships, including access to Gold Blitz titles through Games Global and franchises like Survivor, support player retention. Cross-sell initiatives drove approximately 60% of online sports players to engage with casino offerings during the NFL season.
