As BETMGM-Q1-2026-BUSINESS-UPDATE”>reported by BetMGM on April 14, the company generated Q1 net revenue of $696 million, which grew by 6% compared to last year. At the same time, adjusted EBITDA rose by 11%, reaching $25 million.
These figures may seem modest on the surface, but there was one very significant detail hiding behind the numbers. Casino once again carried much of the quarter, while softer sports performance contributed to a lower full-year revenue outlook.
iGaming Continued to Do the Heavy Work
The quarterly net revenue for iGaming was $481 million, marking an increase of 9% over the same period last year. Even though there was a decline of 3% in the number of average monthly active users in this category, the revenue per active user rose 12%. According to the company, its share of gross gaming revenue in its active iGaming markets stood at 20%.
It indicates that the casino business is getting more efficient, irrespective of widespread growth in the user base for BetMGM. From an operational perspective, it seems that the operator is deriving more benefits from a smaller pool of players rather than pursuing bigger numbers at any cost. It further justifies why management tied the reduced number of active users to selective acquisitions and player management.
Sports Revenue Grew, but the Quarter Still Disappointed
Net revenue from online sports came in at $203 million, representing a 4% increase, while the handle climbed 3% to reach $4.2 billion. These figures were far from being catastrophic, but they failed to prevent the downgrade in the annual revenue outlook. BetMGM cited player-friendly results and more aggressive promotional spending as factors that dented quarterly performance. Monthly active users on the online sports platform fell 16%, despite improvements in handle and NGR per monthly active user.
That’s why the quarter reads weaker than what the headline numbers suggest. Sports did not collapse. But it once again highlighted how easily margins can become squeezed when results are favorable to bettors while operators have to incur additional costs to maintain their position. Reuters highlighted this as the key factor behind why BetMGM lowered its 2026 revenue forecasts.
Guidance Was the Real News
BetMGM is now forecasting net revenue for 2026 at $2.9 billion-$3.1 billion, which represents a slight reduction compared to the company’s earlier guidance for $3.1 billion-$3.2 billion. Its goal for Adjusted EBITDA remains $300 million-$350 million, although the company now expects to hit closer to the bottom end of the range. Management maintained its target of $500 million in Adjusted EBITDA in 2027. The quarter also marked BetMGM’s first accrued Parent Fees payment of $3 million to MGM Resorts and Entain.
It’s not that BetMGM just had a poor quarter. The larger story is that BetMGM’s financials are looking clearer. Casino is becoming the more stable core of the business. Sports still offers scale, but it remains more exposed to promotional pressure, player-friendly outcomes, and volatility.
