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- BetMGM is shifting marketing spend away from sports betting-only states to focus on higher-value iGaming markets and Nevada.
- CEO Adam Greenblatt identified prediction markets and unregulated illegal operators as ongoing competitive risks to sportsbook economics.
BetMGM is pulling back spending in states without legal online casino gaming and redirecting more of that investment to iGaming markets and Nevada, as CEO Adam Greenblatt said prediction markets and illegal competition are pressuring sportsbook economics.
The strategy update came with BetMGM’s third-quarter results, which showed the operator growing revenue and profitability even as average monthly online sports activity fell. For readers tracking election betting markets and broader prediction market competition, the key takeaway is that a major U.S. sportsbook is explicitly changing where it spends to acquire and retain customers.
BetMGM leans harder into iGaming markets
Greenblatt said BetMGM is now focused on “higher-value, higher-staking players” and is reducing investment in lower-return jurisdictions where sports betting is the only legal online product.
“We are hyper-focused on making sure that we look after our premium players in both sports and gaming,” Greenblatt said. He added that “the more targeted approach is working.”
In the third quarter, BetMGM reported $710 million in revenue, up 7% year over year, while adjusted EBITDA rose 112% to $86 million. The company said iGaming now makes up roughly 70% of its business.
Net iGaming revenue increased 6% to $483 million, with active players up 2%. BetMGM also pointed to the June relaunch of the Borgata brand, saying average daily actives in New Jersey and Pennsylvania ran 28% above the February benchmark after the refresh.
The company also said it is bullish on its launch into Alberta’s iGaming market.
Sports betting metrics show the shift in customer strategy
BetMGM’s online sports business still grew, but the mix changed. Total online sports handle rose 3% to $3.24 billion, and online sports net revenue increased 7% to $216 million. Gross hold improved to 10.7%, up from 10.1% a year earlier.
But average monthly online sports active users fell 9% year over year. Greenblatt said that decline was intentional and tied to customer acquisition and marketing decisions.
“Our lower player count is entirely as expected and reflects our intentional decisions around customer acquisition and marketing investment,” he said.
BetMGM said handle per active user rose 13% and net revenue per active user increased 18%. In Nevada, online sports handle was up 8% in the quarter.
Prediction market fight remains a business and regulatory risk
Greenblatt said competitive pressure remains intense because of “significant investments” by unregulated and illegal operators offering sports betting, and he said that environment is likely to continue at least into mid-2027.
On prediction markets, Greenblatt said he expects the U.S. Supreme Court to side with states and tribes on regulatory jurisdiction during the 2026-27 term. He described recent Commodity Futures Trading Commission rules distinguishing sports bets from sports event swaps as temporary, calling them “cosmetics in the pursuit of survival.”
He also warned that even if the current products are challenged successfully, similar offerings could return. “To the extent prediction markets survive, I think it is just a matter of time before the casino-like products reemerge in some other incarnation or some other form,” Greenblatt said.
BetMGM reaffirmed full-year guidance of $2.9 billion to $3.1 billion in net revenue and $300 million to $350 million in adjusted EBITDA, both toward the lower end. Through nine months, adjusted EBITDA reached $185 million. The company said it now sees a path to $500 million in adjusted EBITDA sometime beyond 2027.
Source: As reported by sbcamericas.com.
