BetMGM reported higher third-quarter revenue and a sharp increase in operating earnings Tuesday as its focus on customer value over customer growth continued to take shape.
The joint venture between MGM Resorts and Entain generated $86 million in adjusted EBITDA, up 112% year-over-year, on revenue of $710 million, a 7% increase, according to its Q3 business update. BetMGM maintained its 2026 guidance of $2.9 billion to $3.1 billion in revenue and $300 million to $350 million in adjusted EBITDA, although it expects results toward the lower end of both ranges.
CEO Adam Greenblatt said during Tuesday’s investor call that customer-acquisition costs have fallen meaningfully since the World Cup, with projected payback periods reaching their most favorable levels since late last year. BetMGM has spent much of the year cutting sportsbook marketing expenses, particularly in states without legal online casinos.
Entain shares rose 4.7% Tuesday in London, while MGM Resorts shares were little changed in afternoon trading.
BetMGM maintains market share
The shift has coincided with fewer active players but more revenue per customer. Average monthly active players across sports betting and online casino fell 3%, while online sports betting handle per active player rose 13% and net gaming revenue per active player increased 18%.
Greenblatt said BetMGM has increasingly directed spending toward retaining premium customers while seeking new acquisition opportunities less affected by prediction market competition. The company maintained an 8% sports betting market share and 20% iGaming share in its active markets, the company estimates.
BetMGM is also adjusting its marketing investment based on how quickly it expects to recover acquisition costs, with management saying they are prepared to increase spending where projected returns justify it.
“You have to remember we’ve been at this for seven-eight years now, we’ve figured out the tools and the methods that make marketing more efficient so some of the reduction is just from our wisdom over time,” CFO Gary Deutsch added.
Sportsbook revenue outpaces handle
BetMGM’s total contribution, which reflects revenue after certain operating costs and acquisition marketing expenses, rose 32% to $175 million. Its online sportsbook generated a positive contribution, while iGaming contributed more than $135 million.
Sports betting revenue rose 7% to $216 million, outpacing 3% handle growth. Gross sportsbook hold climbed to 10.7% from 10.1% a year earlier, helped in part by a greater share of parlays and same-game parlays in the bet mix.
Greenblatt said handle has increased modestly through the opening weeks of the NFL season, even as favorable sportsbook results have left bettors with less money to wager again.
Online casino revenue rose 6% to $483 million, accounting for roughly 68% of quarterly revenue. While overall active player counts declined, iGaming monthly active players rose 2%, and net gaming revenue per active player increased 4%. Greenblatt said 55% to 60% of BetMGM’s sportsbook customers also play online casino games during a typical week.
