BetMGM revenue up in igaming, flat in sports betting in second quarter

David McKee

28 July 2026 at 1:56pm UTC-4

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The second quarter brought in US$711 million of net revenue to BetMGM, up 3% year-over-year.

BetMGM experienced an 8% spike in igaming revenues, according to figures released on 28 July. However, online sports betting was flat for the quarter. Igaming brought in US$483 million, compared to OSB’s US$228 million. Cash flow was US$74 million.

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Although BetMGM stood by previous earnings guidance, it cautioned investors that it was likely to come in at the lower end of stated ranges for revenue and cash flow.

The second quarter saw modest increases in handle and hold percentage. That latter went to 10.3%, up from 9.8% last year. Handle burgeoned to almost US$3.5 billion, from US$3.4 billion. But the retail contribution went from US$16 million to nothing reportable, a 97% decrease. Average monthly users declined 3% to 875,000.

Cash flow narrowed 15%, down from US$86 million in 2025. Operating costs also were lower, going from US$21 million to US$18 million. The company paid US$15 million in parent fees to MGM Resorts International and Entain, co-owners of BetMGM.

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CEO Adam Greenblatt waxed optimistic, saying, “BetMGM has started 2026 well and continues to execute with discipline. Our underlying player fundamentals remain healthy, and we are generating positive cash flow. While our industry faces regulatory complexity and an increasingly competitive environment, we remain agile and committed to our strategy that is delivering sustainable and profitable growth.

“Looking ahead, we will continue to prioritize our areas of strength, in particular leveraging our market leading igaming offering across multi-product states, our omnichannel advantage in Nevada, and serving our higher-value customers,” the CEO concluded. “These strengths, combined with our disciplined strategic execution, underpin our confidence in the long-term outlook of our business.”

David McKee is an award-winning journalist who has three decades of experience covering the gaming industry.

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The Backstory

Igaming carries the quarter as sports betting matures

BetMGM’s second-quarter results fit a broader pattern in U.S. online gambling: casino-style products are increasingly doing more of the work, while sports betting growth is becoming harder to sustain at the same pace. The company reported US$711 million in net revenue, up 3% from a year earlier, with igaming rising 8% to US$483 million. Online sports betting was flat at US$228 million, despite modest gains in handle and hold.

That split matters because BetMGM was built as a joint venture between MGM Resorts International and Entain to compete in both channels. In the early years after the U.S. Supreme Court cleared the way for expanded sports wagering, operators spent heavily to acquire customers, often measuring progress by handle and market share. The current phase is different. Investors are focused on cash flow, tax exposure, product depth and the ability to convert sportsbook customers into higher-margin casino players where state law allows.

BetMGM’s comments reflected that shift. Management pointed to profitable growth, its strength in multistate igaming and the value of MGM’s land-based casino network. But the company also warned it may finish near the low end of prior guidance for revenue and cash flow, a signal that the market remains competitive even for one of the sector’s best-known brands.

Rivals show the same casino tilt

The broader earnings season underscored how much of the sector’s momentum is now tied to online casino. FanDuel parent Flutter Entertainment reported that U.S. igaming revenue jumped 42% in the second quarter, while sports betting winnings rose 11%. The company also raised its full-year guidance, helped by strong U.S. performance and international acquisitions, even as reported profit was reduced by a non-cash charge. The results from FanDuel parent Flutter showed that scale can still translate into strong cash generation when customer volume, product mix and sports results align.

DraftKings also delivered record second-quarter revenue, net income and adjusted EBITDA, highlighting the advantages held by the largest digital operators. Its US$1.51 billion in revenue represented a 37% increase from the prior year, giving the company more room to absorb taxes, promotional discipline and technology investments. At the same time, the company’s investor call showed that management is watching adjacent products and regulatory openings carefully. DraftKings Chief Executive Jason Robins said the company is monitoring prediction markets but is mindful of state regulators, tribes and other stakeholders, according to DraftKings’ discussion of prediction markets.

Penn Entertainment offered another version of the same theme. Its Interactive segment reported a 35.9% year-over-year revenue increase to US$316.1 million, driven by online sports betting and online casino growth. The company also pointed to product enhancements and its omnichannel ecosystem, while still reporting an Interactive adjusted EBITDAR loss. The Penn Interactive earnings update illustrated the central trade-off in the market: digital revenue can grow quickly, but profitability depends on marketing costs, platform efficiency and the pace at which customers mature.

Profitability is replacing pure expansion

BetMGM’s positive cash flow of US$74 million was an important marker, even though it was down from US$86 million a year earlier. Operators have spent the past several years moving away from the subsidy-heavy launch model that defined early legalization. In mature states, the fight is no longer only about signing up users. It is about keeping the right users, improving hold, reducing payment and technology costs and limiting promotions that do not produce long-term value.

That pressure is visible in BetMGM’s average monthly users, which declined 3% to 875,000. A smaller or flat user base is not automatically negative if the remaining customers are higher value, but it places more weight on product quality and cross-sell. BetMGM’s hold percentage increased to 10.3% from 9.8%, helping offset a relatively small increase in handle to almost US$3.5 billion. Still, sports betting was flat, indicating that stronger margin alone was not enough to create meaningful growth.

For Boyd Gaming, the story was more defensive. The casino and hospitality company reported total second-quarter revenue of just over US$1.03 billion, nearly unchanged from a year earlier, while online revenue fell to US$31.8 million from US$39.1 million. Boyd said the online segment still reflected growth from online casino and market access agreements, but the decline showed that not every company is benefiting equally from the digital shift. Its flat second-quarter revenue despite a drop in online operations also reinforced the value of diversified land-based, managed and digital businesses when one channel weakens.

Suppliers and product depth shape the next phase

Casino growth is not only an operator story. It depends on suppliers that can deliver live dealer products, slots, localized content and reliable studios in regulated markets. Evolution, one of the largest live casino and slot suppliers, reported second-quarter net revenue of US$607.4 million, up 3.1% year over year. North American revenue rose nearly 23%, a sign that live casino continues to gain traction with U.S. operators and players.

The supplier’s expansion also points to where operators may seek differentiation. Evolution opened a studio in São Paulo, Brazil, entered Rhode Island through Bally’s and launched a live casino studio in the Philippines, its first in Asia. Its planned acquisition of Galaxy Gaming would add table-game content to an already broad portfolio. The Evolution second-quarter revenue report showed how supplier investments can support operator growth by widening the content funnel.

For BetMGM, that matters because online casino success often turns on breadth, user experience and trusted branding rather than only odds or promotions. Sportsbook customers may engage around seasonal events, but casino players can generate more frequent sessions. In states where both products are legal, the ability to move a customer between sports betting and casino products is a strategic advantage. BetMGM’s emphasis on “multi-product states” reflects that reality.

Regulatory costs are becoming a larger swing factor

The earnings backdrop also shows why companies are more cautious about guidance. State tax policy, licensing requirements and advertising rules can quickly change the economics of online betting. Illinois’ per-bet tax, which charges operators US$0.25 on the first 20 million bets and US$0.50 thereafter, has become a reference point for the industry’s concern that governments may keep raising the cost of access once markets mature.

DraftKings’ comments on seeking savings through older partner agreements and payment optimization highlight the operational response. Operators are looking for efficiencies that do not depend on more legalization or better sports outcomes. BetMGM’s lower operating costs, down to US$18 million from US$21 million, fit the same pattern, as did its payment of US$15 million in parent fees to MGM Resorts and Entain.

The regulatory issue is especially important for BetMGM because its ownership structure gives it advantages and constraints. MGM’s casino footprint offers brand recognition, loyalty integration and a path to high-value customers, particularly in Nevada. Entain brings technology and international betting experience. But a joint venture also must balance parent expectations, fees and strategic priorities while competing against larger publicly traded digital rivals with massive scale.

Stakes for BetMGM and the market

BetMGM’s quarter was not weak, but it was restrained. Revenue grew, igaming performed well and cash flow stayed positive. Yet flat sports betting, lower average monthly users, weaker retail contribution and guidance caution all point to a market in which easy gains are harder to find.

The stakes are significant. If more states legalize online casino, BetMGM is well positioned because that is already its strongest segment. If legalization stalls and tax pressure rises, operators will need to extract more value from existing states while defending margins. The companies showing the best balance of scale, content, customer data and cost discipline are likely to separate from the rest.

That is why BetMGM’s second quarter should be read less as a standalone update and more as part of the industry’s transition. Online gambling is moving from land grab to operating test. Growth still matters, but investors are now asking which operators can turn regulated digital gaming into durable earnings. BetMGM’s answer is increasingly clear: lean into igaming, use MGM’s omnichannel reach and protect profitability in a tougher sports betting market.