BetMGM cuts outlook as prediction market competition grows
MGM•Market reaction
Entain shares were down marginally by 1120 GMT.
BetMGM lowers outlook again
U.S. online gambling operator BetMGM on Tuesday downgraded its annual outlook for the second time this year and pushed back its target of reaching $500 million in profit, as competition from prediction market platforms mounts.
Licensed sportsbook operators in the U.S. are facing growing pressure from prediction market platforms such as Kalshi, while FanDuel, DraftKings and Fanatics have launched similar products, raising customer acquisition costs and threatening sports betting market share.
Revenue and profit expectations move lower
The company, a joint venture between Ladbrokes-owner Entain and U.S.-based MGM Resorts, expects full-year net revenue and adjusted core profit to come in towards the lower end of its forecast ranges of $2.9 billion to $3.1 billion and $300 million to $350 million, respectively.
BetMGM also said it no longer expects to hit its $500 million adjusted core profit target by 2027, blaming a more competitive landscape and regulatory complexity stemming from the rise of prediction market platforms.
