BetMGM reported no growth in its sports betting segment in Q2 this year, as active monthly users dropped by 3%. The company said it expects a delay in reaching a targeted Adjusted EBITDA of $500 million, citing the impact of prediction markets on the business.
In its Q2 business update, BetMGM noted that overall revenue climbed 3% to $711 million. This was driven by an 8% increase in iGaming revenue, up from $449 million to $483 million.
Sports betting revenue remained at $228 million, with monthly active users dropping from 901,000 to 875,000. The operator said the drop was expected and reflected “discipline acquisition and player management.”
Despite revenue increasing, adjusted EBITDA fell 15%, down from $86 million to $74 million. For the first six months of the year, adjusted EBITDA was down 9%. The company maintained its guidance of $300 to $350 million for the year, but expects it to be at the lower end of that range.
Prediction Markets Blamed for Slow Sports Betting Growth
For the coming years, the company said it “remains confident” it can deliver Adjusted EBITDA of $500 million. However, it said that “the impact of prediction market regulatory complexity” means the timing of this will go beyond 2027 as targeted.
CEO Adam Greenblatt emphasized the company’s growth in iGaming on the earnings call, but admitted that prediction markets pose a risk.
“Competition is fierce, it’s tough out there,” said Greenblatt. “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.”
Prediction markets exploded in volume at the World Cup, and the upcoming NFL season will test just how many users are migrating from sportsbooks.
Entain Stock Price Drops
Following the release of the results, Entain, which holds a 50% share in BetMGM, saw its stock price fall by around 3%. The price is now down over 44% from this time last year, as UK taxes and a lack of growth at BetMGM weigh on the business.
MGM Resorts, which owns the other 50% of the online brand, saw its stock price remain steady as it nears the completion of a takeover from billionaire Barry Diller. If completed, it would result in the company being delisted from the stock exchange.
MGM Brand Can Grow Online Casino
Greenblatt said he was hopeful that the MGM brand in Vegas will continue to drive its online casino revenue.
“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,” said Greenblatt.
Vegas, however, continues to see declines in visitor numbers and gaming revenue. Last month, the Nevada Gaming Control Board reported an 81% year-on-year drop in net income for the strip’s casinos in 2025.
