BetMGM scales back marketing in states lacking online casinos
BetMGM chief executive Adam Greenblatt says the operator is redirecting spend toward iGaming markets and premium bettors as prediction markets reshape the competitive landscape.
BetMGM is scaling back its marketing commitment in states where it offers sports betting but no online casino product, as chief executive Adam Greenblatt doubles down on a strategy built around premium customers rather than sheer player numbers.
Greenblatt set out the approach on Tuesday during a third-quarter update tied to the joint venture between MGM Resorts and Entain. Entain is due to publish its full quarterly results on Thursday, with MGM following on 28 October.
The operator posted quarterly revenue of $710m, up 7% year-on-year, while adjusted EBITDA climbed 112% to $86m. Greenblatt said BetMGM would keep prioritising what he called higher value, higher staking players, arguing the strategy is paying off.
"We are hyper-focused on making sure that we look after our premium players in both sports and gaming," he said, adding that "the more targeted approach is working."
iGaming now makes up around 70% of BetMGM's overall business, according to Greenblatt. Net iGaming revenue rose 6% to $483m in the quarter, with active players up 2%. The June relaunch of the Borgata brand pushed average daily actives in New Jersey and Pennsylvania 28% above their February levels, and the company said it is optimistic about its entry into Alberta's new iGaming market.
The retreat from sports-only states reflects intensifying competition from unregulated operators and from prediction market platforms offering sports event contracts, which Greenblatt said BetMGM does not intend to match dollar-for-dollar in states without a casino product attached. States where BetMGM runs sports betting without an accompanying iGaming licence include Arizona, Colorado, Iowa, Illinois, Kansas, Kentucky, Indiana, Louisiana, Maryland, Massachusetts, Missouri, New York, North Carolina, Ohio, Puerto Rico, Tennessee, Virginia, Washington DC and Wyoming.
Greenblatt expects that competitive pressure to persist until at least mid-2027, betting that the U.S. Supreme Court will back states and tribes on jurisdiction over prediction markets when the question reaches the court in its 2026-27 term. He dismissed the Commodity Futures Trading Commission's recent rules distinguishing sports bets from sports event swaps as "cosmetics in the pursuit of survival," and said that even if prediction markets are curtailed, "it is just a matter of time before the casino-like products reemerge in some other incarnation or some other form."
Nevada, where prediction market sports contracts are not permitted, saw BetMGM's online sports handle rise 8% in the quarter — a contrast the company is leaning on as it redirects spend toward that market and toward other iGaming states.
BetMGM's average monthly online sports active users generated 9% less revenue year-on-year in the third quarter, a decline Greenblatt attributed directly to the company's own marketing and acquisition choices rather than market pressure. Among the customers who remained, spending intensified: handle per active user rose 13% and net revenue per active user rose 18%. Total online sports handle grew 3% to $3.24bn, net revenue from sports rose 7% to $216m, and gross hold improved to 10.7% from 10.1% a year earlier.
"Our lower player count is entirely as expected and reflects our intentional decisions around customer acquisition and marketing investment," Greenblatt said. He pointed to strong September reactivations among high-value customers and first-time depositor numbers that beat internal expectations, alongside a rising share of parlays and same-game parlays that lifted margins. He added that cost per acquisition has fallen sharply since the end of the FIFA World Cup.
BetMGM reaffirmed full-year guidance of $2.9bn to $3.1bn in net revenue and $300m to $350m in adjusted EBITDA, though toward the lower end of both ranges. Adjusted EBITDA stands at $185m through nine months, meaning the company needs roughly $115m in the fourth quarter to reach the bottom of its target — a figure Greenblatt said rests heavily on NFL season performance and on the high-value bettors the company has chosen to prioritise. He said BetMGM sees a path to $500m in adjusted EBITDA "sometime beyond 2027."