World Cup engagement buoys BetMGM in second quarter
BetMGM CEO Adam Greenblatt called the second quarter “another quarter of focused execution,” albeit one that “came in a little lighter.” He made the remarks during the company’s 28 July earnings call.
Greenblatt also took a jab at prediction markets, referring in his prepared remarks to competitive pressure “from unregulated operators.” In igaming, Greenblatt reported “good growth in player engagement and value.” Meanwhile, online sports betting had been spurred by the World Cup and the NBA playoffs.
The CEO professed himself euphoric over the World Cup, saying, “I’m so pleased with how this has played out. What we saw was a massive increase in fandom,” one which would drive handle growth in the long term. What we saw was the emergence of a new sport which could, over time, grow to rival the Big Three … and that’s tremendously exciting.”
Greenblatt said that handle for the World Cup was triple that of 2022, with the turnover on the United States/Belgium match greater than for any football or baseball game ever. “We’ve been able to engage our players through the quieter days of summer.”
Significant player wins, however, wiped out BetMGM’s retail division, which plunged 97% in the quarter. Greenblatt disclosed that BetMGM also was scaling back its marketing spending in online-only states, which he referred to as “lower-return OSB markets,” although “underlying player fundamentals remain healthy.”
The CEO said early going in Alberta was encouraging and that he was excited about “significant product enhancements.” He said he also was heartened that 10% of the players garnered in the first two weeks in Alberta already had ties to MGM.
Lower cross-spending between igaming and online sports betting during the quarter was cited as a headwind. Potential tailwinds included new Game of Thrones-branded igaming products available in Ontario, if not yet in the US, “We remain optimistic about the long-term outlook,” Greenblatt summarized.
He described the market as resilient, despite online sports betting adversities and the effect of prediction markets. “We continue to prioritize value over volume,” Greenblatt said. “We are confident in the durability of these high-end players.” Also, MGM’s terrestrial casinos “continue to remain fertile ground” for new-player signups.
Cost efficiency, Greenblatt said, was “an area of high focus at the moment.” The company’s largest costs were enumerated, in descending order at taxes, marketing, payments and people. “We’re focused on marketing efficiency on the areas where we have an advantage,” the CEO said, adding that he expected second-half profits to be driven by that.
Chief Financial Officer Gary Deutsch interjected that first-half results reflected tax changes and one-time events, expecting a more-normalized third and fourth quarter.
Greenblatt resumed that BetMGM was not going too invest less in players per se, just “in the right players,” putting more “into players that we are committed to keeping.” The company would spend less on lower-end punters, “who don’t really add value to BetMGM.”
The CEO said Nevada was “central to BetMGM strategy. The competitive landscape is different and favorable. We benefit from that power. We recruit thousands of players on a weekly basis from MGM properties” in the Silver State.
Greenblatt said the tracked value of those new players was “in the tens of millions of dollars. In and of itself, Nevada is critically important. We punch above our weight.” Now, the CEO said, BetMGM was delving into the Las Vegas locals market and making progress.
Deutsch added that MGM’s casinos were integral to BetMGM’s branding, company experience and value proposition. The two would not, however, discuss Nevada market share.
Asked to explain a pessimistic shading of reiterated earnings guidance, Greenblatt replied, “Competition is fierce. It’s tough out there! It doesn’t help that gas prices are where they are.”
As for the possibility of new markets opening, Greenblatt identified the top three prospects as Virginia, Indiana and Washington, D.C. But, he cautioned, “the reality is every state is different.” Although he anticipated a wave of legislation in 2027, “with all of these, risks are attendant.”
On the subject of artificial intelligence, Greenblatt said, “I’m very passionate about this” but was reluctant to delve into specifics. He said it was being deployed for compliance tasks and also for responsible-gambling ones. However, “The opportunity for AI is much more fundamental … in terms of how the business is managed. AI will be a disruptor.”
David McKee is an award-winning journalist who has three decades of experience covering the gaming industry.
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The Backstory
World Cup strategy met a profit test
BetMGM’s second-quarter update landed at the intersection of two forces shaping the U.S. online gambling market: the promotional power of a global sports event and the pressure to turn engagement into durable profit. The company’s leadership framed the World Cup as more than a temporary spike in betting activity, arguing that soccer can pull customers through slower summer months and expand the long-term sports betting calendar in the United States.
That view followed a quarter in which BetMGM reported higher customer engagement around the World Cup and NBA playoffs, but also acknowledged that results came in lighter than hoped. The company’s message to investors was disciplined growth rather than unchecked spending. That emphasis has been building across recent updates, as operators have moved away from acquisition at almost any cost and toward higher-value customers, cross-sell opportunities and markets where brands have structural advantages.
For BetMGM, the World Cup offered a chance to test that model. The company had spent months tying soccer to loyalty, promotions and retail events, seeking to convert a rare U.S.-centered tournament into a broader customer relationship. The stakes were clear: If World Cup engagement translates into repeat play, it supports the case that online sports betting can become more profitable without relying on football season alone. If not, the tournament becomes another expensive acquisition window in a sector already wrestling with tax pressure, competitive pricing and regulatory uncertainty.
A promotional buildup before kickoff
BetMGM’s second-quarter commentary followed a series of World Cup initiatives designed to keep customers active before and during the tournament. In one promotion, the operator created a $500,000 bonus-bet pool for each goal scored by the U.S. men’s national team, giving eligible customers a share if they placed a qualifying pre-match wager. The campaign also preserved BetMGM’s 2-Up Early Payout soccer offer and promised more than 300 betting markets for each match, as well as watch parties and retail sportsbook events. The company positioned the package as a broader soccer engagement strategy, not a one-off bonus campaign, according to BetMGM’s U.S. goals-linked World Cup promotion.
The operator also tried to connect sports betting with travel and hospitality. A separate campaign with Marriott Bonvoy offered eligible BetMGM users the chance to win New York trips tied to a World Cup event, along with loyalty points for entrants who linked their accounts and placed qualifying wagers. That sweepstakes, detailed in BetMGM and Marriott Bonvoy’s World Cup sweepstakes launch, reflected a core BetMGM advantage: the ability to pair online betting with rewards, hotels and live experiences connected to MGM Resorts International and partners.
Those campaigns help explain why management later highlighted the tournament as a fan-development event. The World Cup gave BetMGM a product around which it could layer markets, bonuses, social viewing, celebrity-led games and loyalty rewards. In a business where many betting apps look similar, operators are increasingly trying to differentiate through ecosystems rather than odds alone.
Revenue mix underscored casino strength
The second-quarter numbers showed why BetMGM’s focus on higher-value customers and multi-product states matters. In a July 28 results release, the company reported $711 million in net revenue, up 3% from a year earlier. Igaming revenue increased 8% to $483 million, while online sports betting revenue was flat at $228 million. The figures, reported in BetMGM’s second-quarter revenue update, reinforced the growing importance of online casino to the company’s earnings profile.
Sports betting handle rose modestly to almost $3.5 billion and hold improved to 10.3% from 9.8%. But those gains were not enough to produce meaningful growth in online sports betting revenue. Average monthly users declined 3% to 875,000, while cash flow narrowed to $74 million from $86 million. Retail contribution nearly disappeared, falling 97% after significant player wins.
The divergence between igaming and sports betting helps explain the company’s strategy. Online casino offers steadier engagement and stronger economics in states where it is legal, while sports betting remains more volatile and expensive. BetMGM has repeatedly emphasized its “omnichannel” position, particularly in Nevada, where MGM’s Las Vegas properties help recruit customers and reinforce the brand. That pipeline is difficult for online-only competitors to replicate, giving BetMGM a reason to prioritize markets and players where it can use casino relationships, loyalty programs and in-person experiences to lower acquisition costs over time.
Operators weighed World Cup upside differently
BetMGM was not alone in viewing the World Cup as a major customer-acquisition moment, though operators differed in how much they expected it to change long-term growth. Betsson, which has a larger Latin American exposure than many U.S. peers, reported all-time-high revenue in the second quarter and credited part of its momentum to World Cup-focused marketing. The company launched a dedicated advertising campaign, a talk show and a World Cup podcast, while also rolling out a new betting app in Argentina. Its monthly active users rose 32% in the quarter, according to Betsson’s second-quarter earnings commentary.
Betsson’s management said major tournaments are useful for acquisition, but cautioned against assuming an outsized long-term effect. That more measured view highlights the question now facing BetMGM: whether the U.S. market is at a different point in soccer adoption. A World Cup co-hosted by the United States gives domestic operators a rare chance to reach casual fans at scale. BetMGM’s leadership suggested handle for the tournament far exceeded 2022 levels and that certain matches rivaled or surpassed traditional U.S. sports events for betting activity.
The comparison matters because the U.S. sports betting market still depends heavily on football and basketball. Soccer can fill parts of the summer calendar, broaden betting interest and create more frequent touchpoints with customers. But the opportunity requires product depth, education and promotions that bring casual viewers into markets they understand. BetMGM’s second-quarter comments indicate it sees soccer as a structural addition to the betting calendar rather than a short-term event boost.
Cost discipline became the industry backdrop
Even with higher engagement, BetMGM’s tone reflected a market where scale alone is no longer enough. The company said it would reduce marketing in lower-return online sports betting markets and focus spending on customers it expects to retain. That shift mirrors a broader industry move toward profitability after years of aggressive promotional spending following U.S. legalization.
Costs are rising in other ways as well. Tax changes, payment expenses, compliance obligations and product investment continue to pressure margins. BetMGM identified taxes, marketing, payments and personnel among its largest cost categories. It also pointed to regulatory complexity and competition from prediction markets, which executives described as unregulated pressure. Prediction markets have become a point of concern for U.S. sportsbook operators because they can offer event contracts that resemble sports wagers while operating under a different regulatory framework.
Technology suppliers are also shaping the competitive landscape. Evolution’s second-quarter results showed North American revenue rising nearly 23%, driven by demand for live casino and related products, while the company expanded studios in Brazil and Asia. The supplier’s growth, covered in Evolution’s second-quarter revenue report, points to continued investment in casino content, a category that supports operators such as BetMGM in states where igaming is legal.
For BetMGM, the path from World Cup excitement to stronger earnings depends on whether it can convert tournament-driven activity into recurring online casino play, loyalty engagement and profitable sports betting customers. The company’s latest update suggested progress, but also made clear that the industry’s next phase will reward precision more than volume.
