Key Highlights
- BetMGM has revised its 2026 annual forecast downward for the second consecutive time, targeting the lower end of its $2.9B–$3.1B revenue projection
- Second quarter net revenue reached $711 million, representing a 3% year-over-year increase, with iGaming contributing 8% growth
- The company’s $500 million adjusted EBITDA milestone has been deferred beyond the original 2027 timeline
- Rising competition from prediction market operators such as Kalshi is driving up customer acquisition expenses
- Shares of Entain (ENT) declined 1.61% after the announcement
BetMGM has revised its annual projections downward for the second time in 2026, attributing the adjustment primarily to intensifying competition from emerging prediction market platforms.
The gaming operator now anticipates full-year net revenue and adjusted EBITDA will settle toward the bottom of its previously stated guidance—between $2.9 billion and $3.1 billion for revenue, and $300 million to $350 million for EBITDA.
Second quarter net revenue totaled $711 million, marking a 3% increase compared to the same period last year. The iGaming segment drove performance with 8% growth, while online sports betting revenue remained stagnant. The quarter’s adjusted EBITDA stood at $74 million.
For the first six months of 2026, net revenue increased 4% to $1.4 billion. Adjusted EBITDA reached $99 million, accompanied by positive cash flow generation.
However, these results failed to prevent management from lowering forward-looking expectations.
Profit Milestone Postponed Indefinitely
BetMGM had initially set a goal of achieving $500 million in adjusted EBITDA by 2027. This objective has now been deferred beyond that deadline, with the company pointing to regulatory challenges and intensified market competition as contributing factors.
Prediction market platforms such as Kalshi have been capturing significant market share in the United States, while established players including FanDuel, DraftKings, and Fanatics have rolled out comparable prediction market offerings. This dynamic is elevating customer acquisition expenses industry-wide.
BetMGM maintains a 13% gross gaming revenue share in markets where it operates, securing a top-three position for now. The operator is concentrating on expanding its iGaming portfolio, leveraging its omnichannel presence in Nevada, and attracting premium customers.
The joint venture operates under equal ownership by Entain and MGM Resorts. Following the announcement, Entain (ENT) stock decreased 1.61%.
Technical Headwinds for Entain
Entain’s chart performance is adding to investor concerns. According to TipRanks’ AI-driven analysis, ENT registers as a “Strong Sell” based on technical indicators, showing a bearish MACD signal and trading below critical long-term moving averages.
The stock does offer approximately 3.6% dividend yield, and its latest analyst coverage assigns a Buy rating with a £1,000 price objective. However, with negative earnings multiples and erratic profitability, the fundamental valuation remains questionable.
MGM Resorts (MGM) stock climbed 1.67% during the same session, though this movement appeared disconnected from the BetMGM developments.
MGM Resorts International, MGM
BetMGM’s current market capitalization stands at £3.54 billion via Entain’s publicly traded shares.
The second quarter performance and reduced annual guidance represent further evidence that the expansion of prediction markets is compelling regulated sportsbook operators to recalibrate their growth expectations.
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