BetMGM Lowers Full-Year Guidance, Cites Pressure From Prediction Markets

BetMGM on Tuesday lowered its annual financial outlook for the second time this year and postponed a key profitability milestone, signaling that intensifying competition from prediction market platforms is weighing on its performance.

Revised Outlook

The company, a joint venture between MGM Resorts and Entain, announced it now expects full-year results to fall toward the lower end of its previously issued guidance. According to the statement, the revised expectations are:

• Net Revenue: Towards the low end of the $2.9 billion to $3.1 billion range.
• Adjusted Core Profit: Towards the low end of the $300 million to $350 million range.

Furthermore, BetMGM has pushed back its long-term profitability goals. The operator said it no longer expects to achieve its target of $500 million in adjusted core profit by 2027, citing a more challenging operating environment.

Competitive Headwinds

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BetMGM attributed the downgrade to growing pressure from prediction market platforms like Kalshi. These platforms represent a new competitive threat to traditional licensed sportsbook operators.

The company noted that major rivals, including FanDuel, DraftKings, and Fanatics, have also launched similar products. This trend is increasing customer acquisition costs and threatening to erode market share in the core sports betting industry. BetMGM also pointed to "regulatory complexity" as a contributing factor to its revised forecast.

Market Impact

Following the announcement, shares in BetMGM's co-owner Entain, the UK-based owner of Ladbrokes, traded marginally lower. The revised guidance underscores the increasingly crowded and competitive landscape for U.S. online gambling, where operators are facing new challenges to sustaining growth and achieving profitability targets.