The start of 2026 found BetMGM still in the black, but a subtle shift had occurred. While the company reported $696 million in net revenue for the first quarter – a 6% increase year-over-year – the momentum of the previous year had noticeably softened.
Adjusted EBITDA climbed 11% to $25 million, demonstrating continued profitability. However, this represented a more measured pace compared to the robust performance of 2025, signaling a changing landscape for the company.
The slowdown was most apparent in sports betting, with online revenue reaching $203 million – a 4% increase. This starkly contrasted with the explosive growth experienced throughout 2025, where first-quarter gains reached 68%, followed by 56% and 36% in subsequent quarters.
iGaming continued to be a stronger performer, generating $481 million in revenue, a 9% increase. Even this growth, however, lagged behind the impressive 24% reported for the entirety of 2025.
Company leadership attributed the weaker sports performance to favorable outcomes for players and increased promotional spending. They also highlighted a deliberate strategy to refine player management, a move already reflected in user data.
Average monthly active users decreased by 9% to 975,000. The decline was particularly pronounced in online sports, where active users dropped by 16%. Simultaneously, betting activity per user and revenue per bettor both saw increases.
This revealed a clear trend: a smaller user base, but one that was demonstrably more valuable. BetMGM had been prioritizing returns from existing customers over aggressive user acquisition throughout 2025, and that strategy was now colliding with a more challenging revenue environment.
As a result, the company revised its 2026 revenue forecast downward, projecting between $2.9 billion and $3.1 billion, a reduction from the previously anticipated $3.1 billion to $3.2 billion. The Adjusted EBITDA target remained at $300 million to $350 million, but expectations shifted towards the lower end of that range.
This change in outlook was a significant departure from 2025, a year characterized by repeatedly raised expectations. BetMGM began the year with a revenue projection of $2.4 billion to $2.5 billion, consistently increasing it throughout the year to ultimately achieve $2.8 billion in revenue and $220 million in EBITDA.
Chief Executive Officer Adam Greenblatt acknowledged a “steady start” to the year, emphasizing that BetMGM was executing its strategic plan and building on the transformation initiated in 2025. The latest results confirmed this assessment.
The business remained stable, but the emphasis had shifted to preserving profitability as sustained growth became increasingly difficult to achieve. The era of rapid expansion appeared to be giving way to a new phase focused on maximizing value from a more focused customer base.
