BetMGM doubles down on iGaming, retreats from non-iGaming states amid prediction market pressures

BetMGM announced a strategic pullback from U.S. states that offer sports betting without online casinos as it reallocates investment toward iGaming markets and higher-staking customers. CEO Adam Greenblatt outlined the shift during a third-quarter update for the MGM Resorts International and Entain joint venture on 13 October 2026, reporting $710m in third-quarter revenue and $86m in adjusted EBITDA.

BetMGM iGaming focus and the Q3 financial picture

BetMGM reported total third-quarter revenue of $710m, up 7% year-over-year, and adjusted EBITDA of $86m, an increase of 112% year-over-year. iGaming now represents roughly 70% of BetMGM’s business, with net iGaming revenue rising 6% to $483m and active iGaming players up 2% in the quarter. The Borgata brand relaunch in June drove average daily actives in New Jersey and Pennsylvania to 28% above a February benchmark.

Greenblatt framed those results as the rationale for a more targeted market footprint: reduced investment where sports betting exists without accompanying online casino products, and increased allocation to states with iGaming and to Nevada.

Why prediction markets changed BetMGM’s approach to markets without iGaming

BetMGM has emphasised value over volume since early 2025, but Greenblatt said the emergence and marketing budgets of prediction markets have amplified the need for selectivity. He described regulatory and competitive dynamics that compressed returns in single-product sports markets and noted he expects those pressures to persist "at least into mid-2027" as the U.S. Supreme Court is likely to consider the regulatory jurisdiction of prediction markets in its 2026–27 term.

Greenblatt characterised recent Commodity Futures Trading Commission rules that distinguish sports betting from sports event swaps as largely cosmetic. He warned that if prediction markets survive, casino-like products could reappear in new forms.

"To the extent prediction markets survive, I think it is just a matter of time before the casino-like products reemerge in some other incarnation or some other form," said Adam Greenblatt.

Rather than match sizable prediction market marketing spend in states where only sports betting is legal, BetMGM is reallocating marketing and acquisition investment into casino-enabled states and Nevada, where prediction market contracts are blocked.

States and territories where BetMGM will reduce investment

BetMGM continues to operate sports betting in a range of states and territories where it does not offer iGaming, but the company is cutting marketing investment in those jurisdictions. The list named by Greenblatt includes:

• Arizona

• Colorado

• Iowa

• Illinois

• Kansas

• Kentucky

• Indiana

• Louisiana

• Maryland

• Massachusetts

• Missouri

• New York

• North Carolina

• Ohio

• Puerto Rico

• Tennessee

• Virginia

• Washington, DC

• Wyoming

BetMGM will shift promotional and acquisition spend away from these single-product markets and toward jurisdictions with online casinos and Nevada.

Customer mix: fewer active bettors, higher value per customer

BetMGM’s monthly online sports active users fell 9% year-over-year in Q3 as the operator prioritised customer quality over volume. Remaining customers wagered more: handle per active user rose 13% and net revenue per active user rose 18%.

Operational sport metrics for the quarter were:

• Total online sports handle: $3.24bn, up 3%

• Online sports net revenue: $216m, up 7%

• Gross hold: 10.7%, up from 10.1% a year earlier

Greenblatt said decreased player counts were intentional and reflected lower customer acquisition and marketing investment. He pointed to September reactivations among high-value customers and stronger-than-expected first-time depositor performance. An increased share of parlays and same-game parlays also helped lift margins. He added that cost per acquisition has fallen meaningfully since the end of the FIFA World Cup.

Market-specific performance and international expansion

Nevada showed a notable lift: online sports handle in Nevada rose 8% in the quarter, a market where prediction market sports event contracts are blocked. BetMGM also flagged optimism about its launch into Alberta’s newly regulated iGaming market, naming regional iGaming expansion as a constructive outlet for capital and marketing spend.

Guidance and the path to higher profitability

Greenblatt reiterated full-year guidance of $2.9bn to $3.1bn in net revenue and $300m to $350m in adjusted EBITDA, noting both ranges are being tracked toward the lower end. Adjusted EBITDA through nine months stood at $185m, leaving roughly $115m required in the fourth quarter to hit the low end of the range.

He said reaching guidance places weight on the NFL season and on the premium players BetMGM is prioritising. The company now sees a path to $500m in adjusted EBITDA "sometime beyond 2027."

What operators and partners should expect next

Platform providers, marketing partners and investor stakeholders should anticipate continued reallocation of spend toward iGaming markets, tighter customer acquisition funnels, and promotional programmes aimed at high-value players. For regulators and market observers the move highlights the commercial trade-off operators face between chasing volume in single-product sports markets and protecting margins where iGaming contributes the majority of revenue.

For further context on regulatory shifts affecting cross-product competition, see analysis on prediction markets. BetMGM’s emphasis on casino-enabled states also underscores demand for integrated sportsbook and online casino product execution among U.S. operators.