BetMGM Q1 Earnings Offer Mixed Bag, Fall Short Of Expectations

Apr 14th, 2026 12:13 PM EDT

BetMGM’s first-quarter 2026 results offered a familiar split: steady growth in iGaming and land-based adjacencies, but a slower, more competitive online sportsbook environment that dragged on overall performance.

MGM Resorts International and Entain reported $696 million in BetMGM Q1 Earnings on Tuesday, up 6% year-over-year but below Wall Street expectations of roughly $767 million.

The miss on BetMGM Q1 Earnings — and a lowered full-year outlook — underscores the increasingly tight race in U.S. online sports betting, where BetMGM continues to lose ground to faster-growing rivals.

MGM Resorts once again saw the benefit of a diversified operational strategy, delivering Consolidated Adjusted EBITDA growth of 20% in the fourth quarter despite headwinds in Las Vegas. As we enter 2026, we are full of optimism for the future driven by the solid base of group and convention business and the completion of the MGM Grand renovations in Las Vegas, continued solid and unwavering results in our Regional Operations, premium mass leadership position at MGM China, double digit revenue growth in BetMGM North America Venture, and an international pipeline of long-term growth with MGM Osaka.
- President and CEO of MGM Resorts International Bill Hornbuckle

Online Sports Betting Growth Trails Peers

BetMGM’s online sportsbook business generated $203 million in revenue in the first quarter of 2026, up just 4% year-over-year. Handle rose 3%, with much of that growth driven by New York, where wagering increased 23% and continues to be a key pillar of the company’s volume.

Outside New York, however, growth was largely flat.

That slowdown stands in contrast to competitors. Analysts note projected quarter growth of 17% for DraftKings, 26% for Rush Street Interactive, and 18% for Caesars Entertainment’s digital division — highlighting BetMGM’s relative underperformance in the sportsbook arms race.

Market share trends reinforce that narrative. BetMGM’s total U.S. gross gaming revenue share slipped to 13%, including just 7% in sports betting, both down about 100 basis points quarter-over-quarter.

Promotional pressure also ticked up and sportsbook promo spend increased modestly year-over-year, with BetMGM citing “reactionary” spending as competitors leaned aggressively into bonuses and comps.

Breaking Down The Numbers Growth Continues In IGaming

If sportsbook is the concern, iGaming continues to be the stabilizer.

BetMGM reported $481 million in iGaming revenue, up 9% year-over-year, accounting for the bulk of its digital business. The segment continues to benefit from strong engagement in established online casino states and remains a higher-margin product compared to sports betting.

That strength ties directly into BetMGM’s broader ecosystem, which includes its land-based casino footprint through MGM Resorts. The integration between retail casinos and online gaming — particularly in loyalty programs and cross-channel play — remains one of BetMGM’s core advantages even as pure-play digital operators push ahead in sportsbook growth, reports JPM Citizens analyst Jordan Bender.

Gaming margins improved slightly, rising to 8.8% from 8.2% a year ago, though still below prior structural levels.

Earnings Miss Shows In Q1 Numbers

Adjusted EBITDA came in at $25 million, up 11% year-over-year but below analyst expectations of $34 million.

BetMGM also continued returning capital to its parents, distributing $3 million in the quarter. That follows a $270 million distribution initiated last quarter as the business transitions into a more mature, cash-generating phase.

For 2026, analysts project roughly $305 million in EBITDA and about $252 million in total cash distributions, split evenly between MGM and Entain.

Guidance Lowered Moving Forward In 2026

The company lowered its full-year 2026 revenue guidance to $2.9 billion to $3.1 billion, down from $3.1 billion to $3.2 billion previously. That implies about 7% growth at the midpoint — a notable step down from earlier expectations and from the broader sector’s growth trajectory.

EBITDA guidance was maintained at $300 million to $350 million, though BetMGM said results are likely to land at the lower end of that range.

Monthly active users declined 9% to 597,000, reflecting what the company described as a more disciplined approach to customer acquisition — a shift away from the heavy promotional spend that defined earlier years of the U.S. sports betting boom.

In addition, the growth of prediction markets such as Kalshi continues to eat away at online sports book play.

The Bottom Line

BetMGM’s first quarter reinforces its current positioning in the U.S. market: a profitable, casino-driven operator with strong iGaming fundamentals and valuable land-based integration — but one that is still searching for momentum in online sports betting, Bender writes.

As competition intensifies and promotional pressure persists, the company’s ability to close the gap in sportsbook — without sacrificing profitability — will be central to whether it can return to double-digit growth alongside its peers.