BetMGM prioritizing igaming business, MGM Digital continuing towards profitability despite Brazil shutdown
The management of BetMGM is planning to “continue to prioritize resources” towards its igaming business, with MGM Resorts International CEO Bill Hornbuckle noting, “we see the most compelling growth opportunities” from the segment.
The comments came during the earnings call following the results announcement for MGM Resorts on Wednesday, while BetMGM had previously released its third quarter results on 13 October.
Management reiterated the 7% revenue increase to US$710 million seen during the quarter, with a 112% increase in EBITDA to US$86 million for the quarter.
As spoken about by BetMGM CEO Adam Greenbalatt during the prior earnings call, Hornbuckle also delved into the topic of prediction markets, highlighting a 9th Circuit ruling that “prediction market sports event contracts are not federally regulated swaps. They are sports bets.” Hornbuckle praised the judge’s decision, noting “we could not agree more and are hopeful that the Supreme Court will review the case sooner rather than later.”
Amongst a growing number of disputes between gaming operators, prediction market operators, state authorities, tribal groups, attorneys general and the Commodity Futures Trading Commission (CFTC), the final issue of whether sports contracts on prediction markets should be overseen by gambling regulators or the CFTC has now been elevated to the Supreme Court.
MGM Resorts International CEO Jonathan Halkyard noted during the call that, regarding BetMGM, “igaming drives nearly 70% of our net revenue from operations and remains our primary growth engine. Coupled with our dominant Nevada presence, these resilient channels generate the majority of our total revenue, insulating our performance from broader prediction market trends and concerns.”
The executive furthered that “Our best in class iGaming segment grew 8% in the quarter and continues to scale. Player values continue to improve driven by our emphasis on acquiring premium customers with high predicted returns. We are also focusing on multiproduct states in Nevada and the high flow through in 3Q is evidence the strategy is working.”
MGM Digital and the Brazil quandary
While BetMGM, a 50% joint venture with Entain, covers the group’s North American igaming (including Canada) and online sports betting (OBS), MGM Digital handles the group’s international online gaming, sports betting and igaming, operating in Europe, the UK and Brazil.
In the earnings call, management revealed that MGM Digital saw a 6% increase in revenue yearly to US$184 million, with a loss narrowing from US$23 million in the same quarter of the previous year to US$4 million in 3Q26.
Speaking of Brazil, Hornbuckle noted that “the market is shut down and we continue to monitor the situation with our co-investor, Grupo Global.”
Gary Fritz, President of MGM Digital, noted that, following the provisional measure banning betting in the nation “we certainly began the contingency plan in Brazil,” allowing the group to “reduce some of our fixed costs in Brazil accordingly.”
The executive furthered that the group has contingencies planned “for a variety of scenarios” and that they are “watching what the Brazilian Congress is going to do, what the Brazilian courts are going to do.”
MGM International CEO Bill Hornbuckle sought to reassure investors, noting “MGM Digital will continue its path to profitability regardless of the outcome in Brazil.”
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The Backstory
Digital moved from side bet to central strategy
MGM Resorts International’s latest emphasis on BetMGM’s igaming business is the result of a strategic shift that has been building through 2025 and into 2026. The company has increasingly framed digital gaming not as an adjacent growth option but as a core driver of earnings, investor value and geographic expansion.
That pivot was made explicit earlier this year when MGM Resorts CEO Bill Hornbuckle told investors that the company’s biggest focus in 2025 was its online presence. At a J.P. Morgan forum in Las Vegas, he described BetMGM as a roughly $2.5 billion business and said MGM’s broader interactive unit could move toward a half-billion dollars with Brazil in view. His comments, reported in MGM Resorts’ 2025 digital strategy update, placed online casino and sports betting ahead of Las Vegas, New York, Japan and other major development projects in management’s priority stack.
The latest earnings commentary extends that argument. MGM is telling investors that igaming, more than online sports betting, is the part of BetMGM with the clearest path to durable returns. The segment’s higher margins, more predictable customer behavior and cross-sell potential have become more important as sports betting faces tougher taxes, costly promotions and competition from lightly regulated event-contract platforms.
BetMGM spent 2024 rebuilding its economics
The confidence around igaming follows a difficult period in which BetMGM had to prove that scale could translate into profitability. In early 2025, executives acknowledged that 2024 losses widened to $291 million from $97 million a year earlier, even as revenue reached $2.1 billion. The message then was that the company had absorbed the cost of repositioning and would shift from broad acquisition toward higher-value customers.
BetMGM CEO Adam Greenblatt used that investor call to call the company an “igaming juggernaut” and said management had refined marketing spending, product investments and customer targeting. As detailed in BetMGM’s February investor update, the company was emphasizing “premium” players, omnichannel customers and improved retention rather than chasing volume in markets where it had weaker positions.
That approach helps explain the latest numbers. BetMGM’s third-quarter revenue rose 7% to $710 million, while EBITDA more than doubled to $86 million. The improvement is not simply a function of market growth. It reflects a deliberate pullback from less efficient marketing, more focus on product depth and better use of MGM’s land-based rewards ecosystem. Management has repeatedly pointed to the combination of MGM Rewards, casino databases and online wallets as a way to raise player lifetime value without matching the promotional spending of rivals.
Igaming has been the strongest proof point. BetMGM has expanded its casino content, invested in live-dealer products and leaned on recognizable brands and proprietary titles. That has made online casino a steadier contributor than sports betting, where margins can swing with results during NFL and college football seasons.
Profitability strengthened the case for staying the course
By the end of 2025, BetMGM’s story had changed materially. The joint venture produced its first profits and made its first distribution to MGM Resorts and Entain, validating management’s argument that prior spending had built a sustainable platform. In a year-end update, Greenblatt said the business had entered a new phase of growth, with igaming serving as the anchor and online sports betting contributing more meaningfully after product upgrades and marketing discipline.
The turnaround, outlined in BetMGM’s year-end earnings report, also showed why MGM is more comfortable prioritizing digital. BetMGM generated full-year igaming revenue of $1.8 billion, compared with $903 million from online sports betting and $66 million from retail wagering. Fourth-quarter figures followed the same pattern, with online casino far ahead of sports betting.
The result was important for both co-owners. BetMGM had long required substantial investment from MGM Resorts and Entain, which together had put in about $1.2 billion. Once the venture became self-funding and distributable, it shifted from a cash-consuming growth asset to a potential earnings engine. That transition is central to the current article’s framing: MGM is no longer asking investors to underwrite an uncertain digital opportunity. It is arguing that BetMGM already has scale, better unit economics and a plausible path for further margin expansion.
Guidance has remained sensitive to taxes, new-market costs and sports results. But the broader direction is clear. Management expects most revenue to come from customers already inside the BetMGM ecosystem, meaning growth is increasingly tied to retention, wallet share and igaming adoption rather than heavy customer acquisition.
Ownership questions put a spotlight on digital value
The importance of BetMGM was underscored when People Inc., formerly IAC, made and later withdrew a proposal to take MGM Resorts private. The offer raised immediate questions about whether any change in MGM ownership could lead to a transaction involving the BetMGM joint venture. Entain shares rose after the proposal surfaced, reflecting investor speculation that MGM’s 50% stake could become part of a broader strategic reshuffle.
When People Inc. dropped its bid, MGM said it would remain a standalone company. As reported in the account of People Inc.’s withdrawn MGM proposal, the BetMGM structure was left unchanged. But the episode clarified how central digital assets had become to MGM’s valuation. People Inc. cited MGM’s “exceptional digital growth opportunities” in its rationale, while MGM Chairman Paul Salem pointed to BetMGM’s momentum as part of the company’s standalone case.
That context matters because MGM’s latest earnings comments are also investor messaging. By emphasizing igaming’s share of revenue and BetMGM’s growing profitability, management is defending the value of keeping the joint venture intact and arguing that the market should credit MGM for its digital exposure. The company’s Nevada scale, regional properties and international pipeline remain important, but digital is increasingly the growth lever investors are being asked to underwrite.
Partnerships and product deepen the sports funnel
Although MGM is prioritizing igaming, sports remains a critical acquisition and engagement channel. The company and BetMGM renewed their Major League Baseball partnerships in 2026, extending BetMGM’s ability to market across MLB platforms in the United States and Canada while preserving MGM Resorts’ status as MLB’s exclusive integrated resort and casino partner.
The renewal, covered in BetMGM and MGM Resorts’ MLB partnership extension, gives the operator access to a data-rich sport with a long season and frequent betting opportunities. It also supports co-branded casino games, which connect sports fandom directly to igaming. That is important because BetMGM’s economics improve when sports bettors cross over into online casino, where margins tend to be stronger and customer engagement can be more consistent.
The MLB relationship also fits MGM’s broader omnichannel strategy. Las Vegas events, resort experiences, rewards points and digital wagering are being treated as parts of one customer funnel. This is why management continues to highlight Nevada despite its smaller share of BetMGM revenue. The state gives MGM a unique physical-digital connection through its Strip resorts, sportsbook presence and online sign-up improvements.
Brazil and prediction markets sharpen the risk calculus
The latest update also shows the limits of MGM’s digital optimism. Brazil, once framed as a major expansion opportunity for MGM Digital, has become a source of uncertainty after regulatory disruption and a provisional measure affecting betting. Management says MGM Digital has contingency plans and is reducing fixed costs while waiting for Congress and the courts to act.
That caution contrasts with earlier expectations that Brazil could help push MGM’s broader interactive business toward a much larger revenue base. Hornbuckle had previously said MGM would ultimately excel there, but the market now sits in a holding pattern. The stakes are significant: MGM Digital’s revenue rose 6% to $184 million in the latest quarter and its loss narrowed sharply, leaving management eager to preserve a path to profitability regardless of Brazil’s outcome.
Prediction markets are the other major risk. BetMGM has aligned itself with state regulators, attorneys general and tribal interests that argue sports event contracts should be regulated like sports bets. MGM executives now cite court rulings and potential Supreme Court review as central to the competitive landscape. The concern is not only legal. If prediction market operators can offer sports-like products under federal commodities oversight rather than state gaming rules, licensed sportsbooks could face a competitor with different tax, licensing and responsible-gaming obligations.
That is why MGM is stressing igaming resilience. Online casino already drives most BetMGM revenue and is less exposed to event-contract substitution. The company’s message is that, even as Brazil clouds international growth and prediction markets challenge sports betting, regulated igaming remains the most reliable engine in its digital portfolio.
