During the BetMG Q3 earnings update, BetMGM CEO Adam Greenblatt reiterated that the joint venture between MGM Resorts and Entain remains aligned with what its brick and mortar parent’s CEO had to say about prediction markets.
BetMGM, MGM Resorts waiting on courts re: Kalshi
“Our position is clear and aligned with almost 40 state attorneys general, our regulators and our tribal partners. As the law stands today, sports prediction markets are, in essence, illegal sports betting. Prediction market operators have no requirements to protect consumers as licensed sports betting operators do. They do not uphold responsible gaming principles. They do not have self reporting obligations for compliance failings and do not have whistleblowing and information sharing obligations,” Greenblatt noted.
MGM Resorts CEO Bill Hornbuckle voiced similar concerns and skepticism around prediction markets during the Global Gaming Expo in Las Vegas last week. He said MGM is watching what happens in the nearly dozen court cases involving Kalshi and sports prediction markets. He also noted that with a growing number of state gamin regulators cautioning operators to avoid prediction markets, he feels the company has “no choice” but to stay on the sidelines.
The agreement is no surprise given that BetMGM CRO Matt Prevost confirmed to SBC Americas last week that the company was fully aligned with MGM Resorts on the issue.
“We will be guided by our regulatory partners, and we have no intention of launching into a world that’s opaque or vague. We want to have absolute clarity before we were to launch into that market, into anything. We’re regulated gaming, period,” Prevost said.
Like Robins, Greenblatt says sports contract value is in geography
Greenblatt also pushed back against the idea that firms such as Kalshi and Polymarket will supplant traditional sportsbooks.
“Just follow the data. If you look at handle trends through the summer and then into the season, you’ll see that there’s really been no degradation, no decay on handle growth in OSB,” Greenblatt noted. He added that an analysis of search queries around prediction markets, the traffic coming from states without legal sports betting is on the rise.
This tracks with what DraftKings CEO Jason Robins had to say about prediction markets, which is that the vertical largely functions as a sportsbook substitute in states with no regulated sports betting.
When asked about what prediction markets offer in comparison to sportsbooks during an onstage interview at Global Gaming Expo last week, he said geography was the key differentiator.
“I think that in a market and state that has legal sports betting, it is apples and oranges. I mean, the quality of the product and what it’s able to deliver for the consumer relative to the prediction markets, the [sportsbook] product is so much stronger,” he said. He said he “doesn’t see a world” where a state that offers legalized sports betting would ever see prediction markets over take them in popularity.
BetMGM upped yearly guidance and returning funds
BetMGM is thankfully in a financial spot where it can be picky about what it expands into. Greenblatt noted on the call that the company is sitting on $200 million in excess cash, which will go back to the parent companies. He also updated guidance for the year on EBITDA from $150 million to $200 million.
Much of that came from sports betting, with revenue up 36% YoY. He noted 21% revenue growth in online casino as well and also highlighted that, as the product ages, the new customers are proving to be even more promising, as the predicted value of players is higher than it was for acquisitions last year.
