BetMGM showcased the viability of its online casino business despite failing to meet Wall Street expectations in the release of its latest business update for the fiscal year.
The MGM Resorts and Entain joint venture lowered its full-year revenue guidance for 2026, amid player-friendly results for sports wagering and a decline in market share.
BetMGM generated $696m in net revenue in Q1 2026, a 6% increase year-over-year. However, the results were lower than the $767m estimated by Citizens Bank.
The operator lowered its 2026 revenue guidance to between $2.8bn and $3.1bn amid the slower-than-expected results. BetMGM previously projected full-year revenue to be between $3.1bn and $3.2bn. Its adjusted EBITDA in 2026 is poised to remain in line with previous guidance of between $300m and $350m. Citizens Bank projects $305m.
BetMGM online casino drives revenue growth
Despite the adjustments to revenue guidance, the company’s online casino business spearheaded growth in Q1 2026 behind $481m in net revenue. The results for iGaming revenue during the period were a 9% uptick compared to Q1 2025. By comparison, sports revenue was $203m, up from $194m for the same period last year.
“iGaming is reflecting that we haven’t seen a new state since 2022 and the market is competitive,” said BetMGM Chief Executive Officer Adam Greenblatt during the company’s Q1 update call. “We’ve seen pockets of new competition in certain states”.
BetMGM’s newest competition is Hard Rock Bet, which entered Michigan’s online casino market in December through a market-access deal with the Hannahville Indian Community, the owner and operator of Harris, Michigan’s Island Resort & Casino.
BetMGM is in competition with new entrants in certain markets as the company plans to invest in its core online casino brands, particularly Borgata Online Casino. The company’s online casino brand is available to players in both New Jersey and Pennsylvania.
“What I believe to be our sleeping giant of a casino brand, the Borgata, is particularly relevant in the Northeast,” Greenblatt said. “We’re refreshing that brand and repositioning that for a different audience, a different demographic, to seek to expand our relevance to even more gamers”.
BetMGM believes its investment in the Borgata online wagering product, along with the potential for a new state-level online casino market to emerge, can help the operator push towards its goal of generating $2bn or more in gaming revenue annually.
BetMGM sets sights on potential Virginia iGaming launch
BetMGM is expecting America’s online casino market to welcome a new jurisdiction in 2027 with the potential launch of the vertical in Virginia.
“You put that all together, combined with the potential for another new iGaming state next year in Virginia, combined with the potential, not certainty, of course, the potential for a more rational sports marketing environment or CPA environment, you can quite easily see a pathway. Now, are there risks? Sure, but we do remain confident that that is achievable,” Greenblatt said.
Earlier this year, lawmakers in the House and Senate considered two separate pieces of legislation that aimed to bring online casino gaming to the state. House Bill 161 and Senate Bill 118 garnered support in their respective chambers before disagreements over amendments caused the measures to die.
Both bills proposed allowing the state’s retail casinos to partner with an iGaming platform. The measures both imposed a $2m platform fee and an initial $500,000 licensing fee, with licensed online casino operators taxed at a 20% rate on adjusted gross gaming revenue.
Under the bills, the Virginia Lottery Board would provide regulatory oversight over iGaming.
The willingness of House and Senate members to support an online casino bill provides key stakeholders in iGaming with hope that Virginia could cross the finish line in 2027. Virginia would add to Maine as the latest U.S. markets to authorize online casinos.
Earlier this year, Maine Gov. Janet Mills decided not to veto a bill that provides state tribes with the exclusive right to offer iGaming. Maine is expected to launch the vertical by 2027.
“I feel pretty positive about the likelihood of us enabling legislation in 2027 in Virginia,” Greenblatt said.
“Having more states adopting our games is a good thing. I remain positive that this is going to see momentum pickup, but the reality is that every state is a different set of political considerations”.
