Why BetMGM is Banking On Players Returning From the Unlicensed Ecosystem

(AsiaGameHub) –   BetMGM Chief Executive Officer Adam Greenblatt has reinforced his belief that players acquired by unlicensed operators will naturally return to regulated operators simply because the experience offered is superior. 

By specifically noting the prevalence and rising competition in prediction markets, Greenblatt confirmed his view that the company is stronger because it maintains much higher margins than any single player in the prediction market sector.

In a briefing to investors, he cautioned that ‘if you are a professional bettor, a market maker, or a high school student, unfortunately, there isn’t a better option for you than prediction markets – but these are not our target players’. 

He suggested that the long-term sustainability of prediction markets is gloomy, considering the specific player base they are attracting. 

Greenblatt acknowledged that the iGaming sector is undergoing a natural evolution and growing more intense; however, he emphasized that its momentum is being driven by its omnichannel strategy. 

The BetMGM CEO stated: “We are utilizing the skills and experience of MGM Resorts and their entertainment strengths in multiple areas. We have seen another part of our strategy prove extremely successful; our players have enjoyed using our engagement tools. We are seeing engagement from our entire player base on average many days a week.”

Retention has continued to improve as the company relies more on rewards and live experiences, seeking to distinguish its product from prediction markets. 

Moreover, the group has also profited from a series of strong game releases, including the Wizard of Oz and Wheel of Fortune titles, which help it to stand out in a competitive industry.  

Confidence regarding 2027

BetMGM has voiced its confidence in hitting its $500m EBITDA goal for 2027, even as it reported that its adjusted EBITDA for this year might come in at the lower end of its guidance.

The operator reported year-over-year revenue growth in both iGaming and online sports betting in its Q1 FY26 financial results, but the announcement that it will likely land near the bottom of its $300m-$350m EBITDA guidance range is attracting attention.

During BetMGM’s Q1 earnings call, CEO Adam Greenblatt was asked by investors what supports the operator’s confidence that it can still meet its $500m EBITDA target by 2027, despite the expectation of lower-end guidance figures for the current year.

Greenblatt replied: “The foundation is that we have a very healthy business. On the gaming side, we are approaching $2bn in revenue, and we have many exciting offerings in the pipeline for our players. 

“As I noted in my opening remarks, the best game on the retail floor, Gold Blitz and its franchise, is now exclusive to BetMGM for the initial period when it is most appealing to serious gamers. 

“We are seeing player values rise, and NGR per player is increasing. We are deriving more value from Nevada and our omnichannel approach, with many exciting developments ahead. While the World Cup is a one-off event this year, it acts as a growth stimulus. Most notably for this year, we have the Alberta launch, now confirmed for July 13. 

“Additionally, our ‘sleeping giant’ casino brand, Borgata, is highly relevant in the Northeast. We are refreshing and repositioning that brand for a different audience and demographic to expand our appeal to more gamers beyond the core BetMGM brand, and we see no limit to the number of premium players. 

“Combine all of this with the potential for a new iGaming state next year in Virginia, and the possibility of a more rational sports marketing or CPA environment, and you can clearly see a path forward. Are there risks? Of course. But do we remain confident that this is achievable? Yes, and that is the balance.”