BetMGM CEO Adam Greenblatt suggested on Monday that the company will only look to participate in offering event contracts “if required” as the legality of prediction markets continues to be cloaked in uncertainty.
Asked during the Q&A section of the company’s Q1 2025 earnings call, Greenblatt noted that prediction markets “live at the inersection between state rights and who has the jurisdiction to regulate gaming at a state level” and will be determined by the courts.
“Whether it represents a risk or an opportunity, things are elements of both, actually,” he suggested. “But in our existing online sports betting states, it represents a degree of small risk, only because the markets that prediction markets serve would be lower-margin for operators. There would be no impediment to sports betting operators participating in that market so we wouldn’t lose that business in time, it would just come into less revenue for the operator.”
Greenblatt also opined that international markets suggest that exchange-type sports betting is a relatively niche product that does not stand up to the breadth and depth offered by sportsbooks.
“Things like the excitement of same-game parlay, the features of a rich sports betting experience that sports betting operators provide, would not be available,” he added. “There isn’t an equivalent in that type of offering. So, while it certainly is something we are monitoring … we will participate if required. Otherwise, we’re focusing on just being the best sports betting operator in the current regulatory environment.”
High-value players drive BetMGM’s sports betting growth
On that note, Greenblatt said that BetMGM leadership are pleased and encouraged by the way the brand’s sportsbook withstood customer-friendly results in March Madness.
In the men’s NCAA championship tournament, all four No. 1 seeds advanced to the Final Four for only the second time ever. Florida, one of the early favorites, won the tournament, while UConn did the same in the women’s championship. Greenblatt suggested that the outcomes delivered a $30 million hit to net revenue during the quarter.
Still, in its Q1 earnings report, BetMGM posted year-over-year net revenue growth from $489 million to $657 million. Online sports betting climbed from $116 million to $194 million (up 67%), while the primary revenue driver of online casino rose from $348 million to $443 million (up 27%). Greenblatt noted that company is seeing improved cross-sell between iGaming and sports betting.
Greenblatt stressed that BetMGM’s work on capturing, retaining and catering to “high-value players” was a key factor in the growth. Online sports betting handle was up 29%, handle per active user rose 27%, and parlay wagering was up nearly 5%.
“2025 is the year we turn the corner to sustainable and growing profitability,” Greenblatt told investors. “The business is as healthy as it’s ever been.”
Greenblatt not worried about tax hikes
Amid a legislative session that has seen potential tax increases mooted in several states, Greenblatt insisted BetMGM is not concerned about a “contagion” spreading across the U.S.
“While there are instances of tax rates rising, we think this is not a this is not a contagion way that we’re seeing,” he opined. “Rather, it reflects specific politics at a state level. And while we do see perhaps some moderate increases of tax in select states this year, we don’t believe that that would be sufficient to undermine either the business model or our current year guidance.”
As for the wider macroeconomic climate, amid tariff uncertainty and stocks dipping, Greenblatt said BetMGM has yet to see any significant effects. He went as far as to suggest that the economic concern could be a good thing in the long term for the online gambling industry as, “if the objective is maximizing tax dollars, then the best way to do that is through legalization, regulation and taxing of iGaming.”
No M&A plans
Greenblatt was also asked whether BetMGM has any intention to explore acquisitions in the foreseeable future.
“There isn’t something we are actively pursuing at the moment,” he said. “It’s really ‘are there gaps?’ And I don’t believe that there are. We’re always monitoring for what might supercharge our core business, but winning in sports and iGaming is our primary focus.
“I don’t think we’re missing out on anything. One of the advantages of being a 50% owned entity of Entain is that the the entire suite of entained technology and product is available to BetMGM.”
