BetMGM said its third-quarter performance kept the sports betting and iGaming operator on track to meet its full-year 2026 financial targets, citing a strong summer, solid early-season football engagement and continued emphasis on higher-value customers.
The company, which is backed by Entain (LON:ENT) and MGM Resorts, reported third-quarter net revenue of $710 million, up 7% from a year earlier, and adjusted EBITDA of $86 million. Management said it continues to expect full-year revenue of $2.9 billion to $3.1 billion and adjusted EBITDA of $300 million to $350 million, with both results expected toward the lower end of those ranges.
iGaming Growth Supported by Content and Alberta Launch
iGaming generated $483 million in third-quarter net revenue, an increase of 6% year over year. Net gaming revenue per active player rose 4%, while active players increased 2%.
Management said iGaming accounts for about 70% of BetMGM’s business and remains a key area of focus. The company pointed to its exclusive content strategy, including the U.S. launch of its Game of Thrones franchise, which it called its most successful game launch across its markets. BetMGM also introduced its SideBet Jackpot feature in Michigan and West Virginia and plans to roll it out across all gaming markets by year-end.
In Alberta, BetMGM said customer returns and per-player metrics have been attractive, with several indicators exceeding the performance seen after the Ontario launch. CFO Gary Deutsch said Alberta had a negligible effect on sports revenue in its first quarter of operation but contributed about two percentage points to iGaming growth. About 20% of players acquired during the quarter came from Alberta, he said.
The company also said its Borgata brand relaunch has gained traction. Average daily active users in New Jersey and Pennsylvania, where the refreshed app is available, were up 28% from a February pre-launch benchmark.
Sports Revenue Rises Despite Fewer Active Players
Online sports betting revenue rose 7% year over year to $216 million, while retail sports revenue increased 5% to $11 million. Online sports handle rose 3%, although year-over-year comparisons were affected by the inclusion of the World Cup in July and one fewer weekend of NFL and college football activity in September.
BetMGM said its strategy of prioritizing player value over total player count continued to lift customer metrics. Handle per active player increased 13%, while net gaming revenue per active player rose 18%. Average monthly active users declined 9%, a result management said reflected its deliberate reduction in investment in lower-return online-sports-only markets.
The company cited improvements to sportsbook speed, stability, cash-out functions, bet tracking, customizable bets and rewards features. It said September produced strong reactivations among higher-value customers. In Nevada, where BetMGM operates an omnichannel offering, online sports betting handle increased 8% during the quarter.
Management said competition remains intense, particularly from unregulated and illegal sports betting operators, and expects those conditions to persist at least through mid-2027. BetMGM also discussed prediction-market competitors, saying their marketing activity remains elevated but that its own customer acquisition costs and expected payback periods have improved since the latter stages of the World Cup.
Cash Returns to Parent Companies
BetMGM began paying fees to its parent companies earlier in 2026 for licenses and services. The company recorded $18 million in parent fees during the third quarter and made an additional $50 million cash distribution, resulting in total cash returned to Entain and MGM Resorts of $68 million.
Deutsch said the company’s strong EBITDA flow-through this year has primarily reflected lower marketing costs compared with the prior year. He added that payment-processing efficiencies and other operating improvements also contributed, while data, content and tax costs remain areas where expenses can be difficult to reduce.
BetMGM said it will continue to allocate capital toward profitable customer acquisition and retention, particularly in multi-product markets, iGaming, Nevada and premium online sports customers, as it enters the heart of the NFL season.
About Entain (LON:ENT)
Entain plc (LSE: ENT) is a FTSE100 company and is one of the world’s largest sports betting and gaming groups, operating both online and in the retail sector. The Group owns a comprehensive portfolio of established brands; Sports brands include BetCity, bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds, Sportingbet, Sports Interaction, STS, SuperSport and TAB NZ; Gaming brands include Foxy Bingo, Gala, GiocoDigitale, Ninja Casino, Optibet, Partypoker and PartyCasino. The Group owns proprietary technology across all its core product verticals and in addition to its B2C operations provides services to a number of third-party customers on a B2B basis.
The Group has a 50/50 joint venture, BetMGM, a leader in sports betting and iGaming in the US.
