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Popular US gambling platform BetMGM has informed investors it expects to generate less revenue in 2026 than originally predicted. Despite the adjustment, the operator posted modest year-over-year revenue growth across its sports betting and online casino operations during the period.
The company pointed to its first-quarter performance as a positive sign and expects continued growth throughout the year. In BetMGM’s view, the results suggest the business remains on a stable, sustainable growth path.
Analyzing BetMGM’s $696 Million first quarter
BetMGM, a joint venture between Entain and MGM Resorts, published its first-quarter 2026 business update on April 14. The report showed net revenue of $696 million for the first three months of 2026, a 6% increase from the first quarter of 2025.
Online casinos remained the company’s strongest segment, with net revenue rising 9% year over year to $481 million. Sports betting also posted growth, though at a slower pace, bringing in $203 million, up 4% from the same period in 2025.
The report also showed adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $25 million, an 11% increase from the same quarter in 2025. That total included the first $3 million parent fee paid to Entain.
Online sports betting handle climbed 3%, with total wagers topping $4 billion. The volume was anticipated during a quarter packed with major events, including March Madness, the Olympics, the NFL playoffs, and the Super Bowl.
Why sports betting revenue missed targets
While projected to offer larger revenue during the first quarter of 2026, BetMGM’s sports betting platform failed to meet expectations. Primarily, the sportsbook saw an increase in the number of winning tickets from January to March. Due to a high volume of “player-friendly” outcomes, the operator was required to pay out more to bettors.
Beyond the wins, BetMGM ramped up promotional activity to keep pace with stiff competition in the US betting industry. Sports betting has expanded rapidly across the country, largely driven by legalization in several new states.
Despite facing significant regulatory hurdles and increasing taxation, the industry continues to thrive. To maintain market share, gambling operators have expanded promotional spending. Both factors led BetMGM to record lower-than-anticipated net revenue in the first quarter.
2026 outlook: Revised EBITDA and revenue guidance
Given the tempered growth in sports betting, BetMGM has lowered its full-year revenue outlook. According to the report, the operator expects full-year 2026 adjusted EBITDA to land between $300 million and $350 million. However, the company now expects the result to fall toward the bottom of that range.
Revenue expectations have also been revised. Net revenue is now projected to be between $2.9 billion and $3.1 billion for the year, down from the previous forecast of $3.1 billion to $3.2 billion. Although this marks a slight drop, the operator remains optimistic about gaining momentum as the year progresses.
CEO Adam Greenblatt on scaling online casinos
Commenting on the financial report, BetMGM CEO Adam Greenblatt said the company is staying the course on a strategic plan that began with a business reshaping in 2025.
Greenblatt pointed to steady progress, noting the company is delivering sustainable, profitable growth and returning cash to its parent companies. According to Reuters news, he highlighted the online casino arm as a major bright spot, noting its ability to scale. He also addressed the sports betting segment, stating that despite a rough first quarter, it is still gaining ground.
Looking at the remainder of 2026, Greenblatt said BetMGM plans to lean into existing successes. This includes doubling down on iGaming and increasing its presence in multi-product states. The company also plans to expand its omnichannel play in Nevada and focus more closely on “premium mass” sports bettors.
If these priorities meet expectations, Greenblatt believes BetMGM will hit its revised 2026 guidance and remain on track toward its long-term goal of $500 million in adjusted EBITDA by 2027.
Key 2026 catalysts expanding the BetMGM ecosystem
BetMGM remains a major force in the US gambling industry, with several catalysts remaining to support its updated outlook. The FIFA World Cup this summer is expected to drive a surge in sports betting activity, and the scheduled Alberta market launch in July will open a new revenue stream.
Simultaneously, the company’s push to expand its online casino business and improve user experience aims to attract more players to the platform. Taken together, these efforts suggest BetMGM is still moving toward its fiscal 2027 goals.
