BetMGM has pushed back its goal of reaching $500 million in annual adjusted EBITDA, citing regulatory uncertainty around prediction markets and a tougher competitive environment, after reporting weaker second-quarter profitability despite higher revenue.
BetMGM reported second-quarter revenue growth of 3% year over year, but adjusted EBITDA fell 15% to $74 million from $86 million a year earlier. First-half adjusted EBITDA declined 9% from the same period in 2025.
The operator had previously said it remained on track to deliver $500 million in adjusted EBITDA in fiscal 2027. It has now deferred that target to “the coming years,” attributing the delay to “the current market environment, including the impact of prediction market regulatory complexity.”
BetMGM maintained its full-year 2026 guidance of $2.9 billion to $3.1 billion in net revenue and $300 million to $350 million in adjusted EBITDA, but said it now expects results to come in at the lower end of those ranges.
Chief Executive Officer Adam Greenblatt said prediction markets remained the biggest external challenge for the company’s online sportsbook business.
“Competition is fierce; it’s tough out there. On the online sports betting 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,” Greenblatt said during the company’s earnings call.
Online sports betting revenue was unchanged at $228 million during the quarter, while iGaming revenue increased 8%.
Greenblatt said the company remained confident in its long-term prospects, noting that “our underlying player fundamentals remain healthy” and expressing “confidence in the long-term outlook of our business.”
He added that iGaming continues to underpin BetMGM’s performance. “As a reminder, nearly 70% of our revenue comes from iGaming,” Greenblatt said.
The company also reaffirmed its strategy of leveraging MGM Resorts’ land-based casino network to acquire high-value customers, particularly in Nevada.
“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,” Greenblatt said.
BetMGM said it viewed Nevada’s recent decision to geoblock prediction market event contracts as a positive regulatory development for traditional online sportsbooks.
Despite delaying its profitability target, Greenblatt said the company still sees a path to achieving $500 million in adjusted EBITDA through gaming growth, cost discipline and its historical flow-through rate of about 40% to 45%.
The company also said it would continue investing in states where it offers both online sports betting and iGaming, noting that more than 60% of sportsbook customers cross-sell into gaming products.
BetMGM also highlighted Alberta’s newly regulated market, product enhancements and expansion of its Borgata brand as additional drivers of future growth.
Separately, BetMGM is expanding its artificial intelligence strategy with two new senior leadership roles focused on AI transformation.
The company is recruiting a Senior Vice President of Business Transformation and AI Strategy, with a salary range of $269,925 to $371,000, and a Director of AI Platform and Portfolio Delivery, offering between $176,240 and $230,000.
According to the job posting, the Senior Vice President will lead the company’s AI roadmap, using AI as a “strategic lever to redesign how the business operates, makes decisions, and scales,” while overseeing AI initiatives across product, technology, data, risk, operations, finance, human resources, and commercial functions.
“AI, I believe, will be a fundamental disruptor over time, and we’ll talk about that more when our plans are more real,” Greenblatt said.
Original article: https://www.yogonet.com/international/news/2026/07/29/125625-betmgm-delays-500m-ebitda-target-as-prediction-markets-weigh-on-sportsbook-outlook
