April 14 (Reuters) – U.S. online gambling operator BetMGM cut its 2026 revenue outlook on Tuesday, citing a soft first quarter for its online sports betting business.
The company, a joint venture between Ladbrokes-owner Entain and U.S.-based MGM Resorts, said quarterly net revenue for the sports segment grew 4% from a year earlier, impacted by player-friendly results and increased promotional activity amid stiff competition.
Player-friendly outcomes squeeze bookmakers by driving up payouts for punters.
Sports betting in the U.S. has been rapidly expanding, driven by accelerating state-level legalization and heavy marketing by major operators, even as the sector faces intensifying regulatory scrutiny and increasing state-level taxation pressures.
Entain shares dropped sharply before recovering to trade 1% higher after BetMGM’s update. MGM Resorts shares were down 1% in premarket trading.
BetMGM now expects to report revenue of $2.9 billion to $3.1 billion for the year, down from the previously expected $3.1 billion to $3.2 billion.
It kept its annual adjusted core profit guidance unchanged at $300 million to $350 million, albeit with expectations at the lower end of the range.
(Reporting by Yamini Kalia in Bengaluru; Editing by Jonathan Ananda)
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