BetMGM reported first‑quarter 2026 net revenue of $696 million, a 6% year‑over‑year increase that still falls short of the $767 million consensus estimate. The shortfall reflects a slower than expected growth in the online sports segment and a decline in average monthly active users, which dropped 9% to 597,000 from 654,000 a year earlier.
Revenue was driven by a 9% rise in iGaming sales to $481 million, while online sports revenue grew only 4% to $203 million. The modest sports growth is a deceleration from the 68% increase seen in Q1 2025 and is accompanied by a 3% rise in the $4.2 billion handle. Market‑share data show BetMGM holds 13% of the gross‑gaming‑revenue market, with 20% in iGaming and 7% in online sports betting. Retail and other revenue fell from $20 million in Q1 2025 to $11 million in Q1 2026.
Adjusted EBITDA reached $25 million, up 11% from $22 million a year earlier, but it missed the $34 million consensus estimate. The miss is largely attributable to a lower mix of high‑margin iGaming revenue and increased promotional spend in the online sports business, which compressed overall profitability. Despite the shortfall, the company’s cost‑control program and focus on higher‑value customers helped maintain margin expansion relative to the prior year.
BetMGM’s full‑year guidance remains unchanged: net revenue is now projected at $2.9 billion to $3.1 billion, down from the previous $3.1 billion to $3.2 billion range, while adjusted EBITDA guidance stays at $300 million to $350 million, with a 2027 target of $500 million. The company also announced a $3 million parent fee payment to Entain and MGM Resorts, underscoring its transition to a cash‑generating joint venture.
"Although it has been a steady start to the year, BetMGM is delivering on our strategic plan, carrying forward the initiatives that drove our transformation in 2025. We are generating sustainable, profitable growth and paying cash to our parent companies. Our iGaming business is growing at scale, and our Online Sports business continues to strengthen despite a challenging market in Q1," said CEO Adam Greenblatt. "As we look to the rest of the year, we will continue to focus on our areas of strength, particularly in iGaming, multi‑product states, omnichannel in Nevada, and servicing our premium mass sports players. These give us confidence that we will deliver on our updated 2026 guidance as well as continue on the path to $500 million of Adjusted EBITDA in 2027."
BetMGM faces intensified competition in the U.S. online sports betting market, with rivals such as DraftKings and Caesars posting faster growth rates. The company’s strategic pivot toward higher‑value customers and disciplined player management has helped offset the decline in average monthly active users, but the slower sports growth signals a headwind that could pressure future top‑line expansion. The continued strength of iGaming, however, remains a key tailwind, supporting the company’s profitability and its ability to meet the 2027 EBITDA target.
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