BetMGM Reports Q1 Growth but Lowers 2026 Revenue Outlook, Weighing on MGM Shares

BetMGM, the joint venture between MGM Resorts and Entain, reported a 6% increase in net revenue for the first quarter, alongside an 11% gain in EBITDA. Despite steady operational performance, the company lowered its 2026 revenue guidance to a range of $2.9 billion to $3.1 billion, triggering a slip in MGM Resorts' share price. Management highlighted increasing competition within the iGaming segment as a primary concern for future growth. Furthermore, the CEO described the landscape of prediction markets as potentially leading to 'shark-on-shark violence' due to the intensity of the competition. This adjustment suggests a more conservative outlook on market share capture amid a tightening industry environment. Investors remain focused on how the company will navigate these competitive pressures while maintaining its long-term strategic goals.