In the second quarter of this year, BetMGM reported no growth in its sports betting sector, with a 3% decline in active monthly users. The company anticipates a delay in achieving its goal of an Adjusted EBITDA of $500 million, attributing this setback to the impact of prediction markets on its operations.
During its Q2 business update, BetMGM announced that its overall revenue increased by 3% to $711 million, primarily driven by a robust 8% growth in iGaming revenue, which rose from $449 million to $483 million.
However, sports betting revenue stagnated at $228 million, with the number of monthly active users declining from 901,000 to 875,000. This decrease was anticipated and was described by the operator as a result of "discipline acquisition and player management."
While revenue was on the rise, adjusted EBITDA fell by 15%, decreasing from $86 million to $74 million. Over the first half of the year, adjusted EBITDA saw a decline of 9%. Although BetMGM continues to forecast an annual adjusted EBITDA between $300 million and $350 million, they now expect to fall towards the lower end of that range.
The company expressed its continued optimism about reaching an Adjusted EBITDA of $500 million in the future, though it acknowledged that "the impact of prediction market regulatory complexity" would delay this until beyond the original target of 2027.
CEO Adam Greenblatt pointed to the company’s success in iGaming during the earnings call but recognized that prediction markets represent a significant challenge. "Competition is fierce, it’s tough out there," Greenblatt remarked. He elaborated, noting that alongside the regulatory hurdles posed by prediction markets, rising gas prices and shifts in consumer discretionary spending further complicate the landscape.
The surge of prediction markets during the World Cup and the upcoming NFL season will be crucial in determining how many users are transferring from traditional sportsbooks.
In reaction to these quarterly results, Entain, which holds a 50% ownership stake in BetMGM, experienced a 3% drop in its stock price. It has now seen a plunge of over 44% compared to its value one year ago, influenced by UK tax changes and the stagnant growth at BetMGM.
MGM Resorts, owning the other half of the BetMGM brand, managed to keep its stock price stable, despite nearing the completion of a takeover by billionaire Barry Diller, which could lead to its delisting from public stock markets.
Greenblatt remains optimistic about the potential of the MGM brand in Las Vegas to enhance online casino revenue. "Anyone who’s been to Vegas understands the strength of the brand there. We benefit from that impact. In terms of BetMGM, we recruit thousands of players weekly at MGM properties," he said.
Despite this optimism, Las Vegas is currently facing a decline in visitor numbers and gaming revenue. According to the Nevada Gaming Control Board, casinos on the strip reported an astounding 81% year-on-year drop in net income in 2025.
