In the second quarter of 2026, BetMGM revealed minimal revenue growth year-over-year, which has prompted concerns about its long-term profitability. The company's revenue increased by just 3%, yet its adjusted EBITDA dropped 15%, falling to $74 million from $86 million in the same quarter of 2025. In the first half of this year, adjusted EBITDA decreased by 9% compared to the previous year.
Given these results, BetMGM has adjusted its forecast for achieving its $500 million adjusted EBITDA target by 2027, indicating that this goal is unlikely to be met in the near term. Management attributed the setbacks to challenging market conditions, particularly the rising impact of prediction markets and ongoing regulatory uncertainties. Consequently, the company expects its 2026 net revenue and adjusted EBITDA to fall within the lower end of its previously projected range of $2.9 to $3.1 billion and $300 to $350 million, respectively.
CEO Adam Greenblatt commented on the tough competitive landscape, stating, “Competition is fierce, it’s tough out there. On the OSB side, the primary macro impacts are prediction markets, but then of course, gas prices don’t help, and consumer discretionary income is a factor. Trying to parse out those impacts is very difficult. Anyone who’s been to Vegas, you just have to land to understand the strength of the brand in Vegas. We benefit from that impact; in terms of BetMGM directly, we recruit thousands of players weekly in MGM properties.”
Looking ahead, BetMGM plans to focus on growth through product enhancements, expanding its Borgata brand, and leveraging early momentum in Alberta's newly regulated online gaming market.
