BetMGM pulls investment from non‑iGaming states and prioritises high‑value players

BetMGM is withdrawing investment from state markets that offer only online sports betting and refocusing on high‑value players, Adam Greenblatt said during the third‑quarter update of the joint venture between MGM Resorts International and Entain on 13 October 2026. The company attributes the move to pressure from prediction markets and competition from unregulated operators, and is reallocating resources toward states that allow iGaming and toward Nevada.

BetMGM and the focus on higher‑value players

Greenblatt said the company’s strategy keeps emphasis on “higher‑value, higher‑stakes players” as BetMGM reviews its overall approach in response to the emergence and impact of prediction markets. In the quarterly update he said the business is "hyper‑focused on taking care of our premium customers in sports and gaming" and that “the more targeted approach is working.”

"We are focusing on higher‑value players and on making sure we take care of them in sports and gaming," Adam Greenblatt said.

Third‑quarter results illustrate that bet: BetMGM’s total revenue reached $710m, up 7% year‑on‑year; adjusted EBITDA for the quarter was $86m, a 112% year‑on‑year increase.

iGaming: the backbone of BetMGM’s business

Greenblatt noted that iGaming now represents approximately 70% of BetMGM’s business. Net iGaming revenue rose 6% to $483m, while active players increased 2%.

The relaunch of the Borgata brand in June lifted average daily depositors in New Jersey and Pennsylvania by 28% above the February benchmark. The company also said it is optimistic about entering the new iGaming market in Alberta.

Why BetMGM is pulling back in non‑iGaming states

The company has prioritised value over volume since early 2025; Greenblatt said that priority is amplified because the competitive environment “remains intense,” particularly given significant investment by unregulated and illegal operators offering sports betting. He expects these pressures to last “at least into mid‑2027,” pending a US Supreme Court decision in 2026–27 on jurisdiction for regulation of prediction markets.

Greenblatt described recent rules from the Commodity Futures Trading Commission as “cosmetic in the pursuit of survival.” He added: “If prediction markets survive, I think it’s only a matter of time before casino‑type products reappear in another incarnation or form.”

Against that backdrop, BetMGM decided not to try to match prediction markets’ marketing budgets in states where only sports wagering is permitted. Instead, the company is redirecting spend to states that also allow online casinos and to Nevada.

States and territories where BetMGM operates sports betting only

BetMGM operates sports betting without iGaming in the following states and territories: Arizona, Colorado, Iowa, Illinois, Kansas, Kentucky, Indiana, Louisiana, Maryland, Massachusetts, Missouri, New York, North Carolina, Ohio, Puerto Rico, Tennessee, Virginia, Washington DC and Wyoming. In Nevada, where event‑contract markets for prediction are blocked, online wagering rose 8% in the quarter.

Fewer active customers but higher spend per user

BetMGM’s average monthly active online sports users fell 9% year‑on‑year in the third quarter. Those who remained wagered more: handle per active user rose 13%, and net revenue per active user increased 18%.

Other operational figures for the quarter include:

• Total online sports handle: $3.24bn, +3% year‑on‑year.

• Online sports net revenue: $216m, +7% year‑on‑year.

• Gross hold: moved to 10.7% from 10.1% a year earlier.

Greenblatt attributed the decline in the player base to intentional decisions on customer acquisition and marketing. He also highlighted strong reactivations among high‑value customers in September and said new‑customer deposits exceeded expectations. A larger share of parlays and same‑game parlays in the bet mix helped lift margins. He added the cost‑per‑acquisition has fallen materially since the end of the FIFA World Cup.

"Our smaller player count is entirely expected and reflects intentional acquisition and marketing decisions," Greenblatt said.

Guidance and financial outlook

Greenblatt reaffirmed BetMGM’s annual guidance: net revenue of $2.9bn to $3.1bn and adjusted EBITDA of $300m to $350m, with the company positioned toward the lower end of both ranges. Adjusted EBITDA reached $185m in the first nine months, so hitting even the low end requires roughly $115m in the fourth quarter.

The company pins much of that expectation on the start of the NFL regular season and on contributions from the high‑value bettors it has prioritised. Greenblatt said the company sees a path to reach $500m in adjusted EBITDA “at some point beyond 2027.”

Implications for operators and regulators

Shifting resources toward iGaming markets and Nevada recalibrates commercial priorities: higher return per customer versus user volume. For operators and suppliers this tactic underscores the importance of products and campaigns that attract high‑value customers and maximise margin per user. Regulators and policy makers will watch how product choices — including prediction markets and their regulation — continue to affect competition between regulated and unregulated operators.

For related reading, the regulatory context and prediction markets can be found in the regulation and b2b sections where applicable.