REG - Entain PLC - BetMGM Q1 2026 Update

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RNS Number : 3980A  Entain PLC  14 April 2026

April 14, 2026

 

BETMGM Q1 2026 BUSINESS UPDATE

 

Q1 profitable growth reflects continuing execution of strategy

 

BetMGM LLC ("BetMGM"), a leading sports betting and iGaming operator across
North America, jointly owned by Entain plc (LSE: ENT) ("Entain") and MGM
Resorts International (NYSE: MGM) ("MGM Resorts"), is today providing an
update on its Q1 2026 performance.

 

·   Q1 performance reflects continued successful execution of refined
player management strategy, delivering robust iGaming growth alongside softer
Online Sports growth including player friendly sports results

o  Net Revenue of $696 million, +6% YoY

o  iGaming Net Revenue +9% YoY and Online Sports Net Revenue +4% YoY

o  Adjusted EBITDA of $25 million, +11% YoY

·  FY 2026 guidance: BetMGM maintains focus on its areas of strength and
delivering profitable and sustainable growth with guidance updated to reflect
year-to-date performance and revised outlook expectations

o  Continue to expect FY 2026 Adjusted EBITDA between $300-$350 million,
albeit towards lower end of the range, while Net Revenue now expected to be
between $2.9-$3.1 billion

 

Adam Greenblatt, Chief Executive Officer of BetMGM, commented:

"Although it has been a steady start to the year, BetMGM is delivering on our
strategic plan, carrying forward the initiatives that drove our transformation
in 2025. We are generating sustainable, profitable growth and paying cash to
our parent companies. Our iGaming business is growing at scale, and our Online
Sports business continues to strengthen despite a challenging market in Q1. As
we look to the rest of the year, we will continue to focus on our areas of
strength, particularly in iGaming, multi‑product states, omnichannel in
Nevada, and servicing our premium mass sports players. These give us
confidence that we will deliver on our updated 2026 guidance as well as
continue on the path to $500 million of Adjusted EBITDA in 2027."

 

Q1 2026 Key Financial Highlights

                                         Three months ended March 31, 2026(1,2,3)
 $ millions, unless otherwise noted      2026            2025            YoY Change
 Net Revenue
 iGaming                                 $481            $443            +9%
 Online Sports                           $203            $194            +4%
 Handle(4)                               $4,218          $4,088          +3%
 GGR Hold %                              8.8%            8.2%            +60bps
 NGR Hold %                              4.8%            4.8%            +5bps
 Retail / Other                          $11             $20             (43%)
 Total Net Revenue                       $696            $657            +6%
 Contribution                            $116            $116            --

 Adjusted EBITDA                         $25             $22             +11%
 Capital Expenditures                    $3              $4              ($1)
 Parent Fees                             $3              --              +$3

 Average Monthly Actives (thousands)(5)  975             1,067           (9%)

 

 

Financial Highlights(1)

·   Q1 Net Revenue of $696 million, +6% YoY

o  iGaming Net Revenue +9% YoY with player engagement momentum underpinned by
the strength of our product offering

o  Online Sports Net Revenue +4% YoY, impacted by player friendly sports
outcomes and increased promotional generosity aligned with heightened
competitive environment

o  Average Monthly Actives -9% YoY(5), as expected, reflecting disciplined
acquisition and ongoing player management

·   Q1 Adjusted EBITDA of $25 million (+11% YoY), with both iGaming and
Online Sports delivering positive Contribution

o  First payment of Parent Fees of $3 million to Entain and MGM Resorts
accrued in Q1(10)

·   Podium position with 13% GGR market share in active markets, including
iGaming (20%) and Online Sports (7%)(6,7)

 

Operational Highlights

·      Market-leading iGaming offering

o  Leading iGaming offering supported by ongoing refinement of player
management delivering consistent growth in engagement metrics

(§) Q1 NGR per Active +12% YoY(8)

(§) Q1 Average Monthly Actives -3% YoY(5)

o  Continued focus on best-in-class and exclusive content providing players
with exciting and differentiated experiences

(§) Exclusive access to all Gold Blitz titles before launching to the wider
market with new Games Global partnership

(§) New and exclusive titles from leading franchises, including Survivor,
celebrating the show's 50th anniversary season

(§) Enhancing cross-sell initiatives with sports-branded games and increased
showcasing of promotions in our multi-product states

 

·      Focused approach to Sports, including in Nevada, continues

o  Disciplined acquisition and player management strategy in Online Sports
focused on premium mass player audience supports healthy underlying KPIs

(§) Q1 Handle per Active +23% YoY(8)

(§) Q1 NGR per Active +25% YoY(8)

(§) Q1 Average Monthly Actives -16% YoY(5)

o  Q1 Handle +11% YoY(9) in Nevada, demonstrating continued execution of
strategic and competitive advantage

 

Outlook

·    Reflecting year-to-date performance and revised outlook expectations
for the remainder of 2026, BetMGM now expects FY 2026 Net Revenue of $2.9-$3.1
billion (previously $3.1-$3.2 billion) while maintaining existing Adjusted
EBITDA guidance albeit towards the lower end of $300-$350 million range

o Updated guidance reflects moderated top line growth expectations,
continuing operational efficiencies and disciplined strategic investment
focused on its areas of strength, to support growth in outer years

o Exciting opportunities ahead include leaning further into iGaming,
multi-product states, winning in Nevada, World Cup activations, launching in
Alberta, and servicing our premium mass sports players

·    As previously stated, total cash to parents in 2026 will comprise
Parent Fees(10) and excess cash above BetMGM's minimum unrestricted cash
requirement of $100-$125 million(11). Adjusted EBITDA less CapEx is a
reasonable proxy for total cash to parents

·      BetMGM remains on its pathway to delivering $500 million of
Adjusted EBITDA in FY 2027

 

 

Q1 2026 Results Audio Webcast and Q&A

·   An audio webcast call will be held today, Tuesday, April 14, 2026 at
9:00am EST (2:00pm UK), with participants able to join via webcast

o  Live audio webcast registration link: BetMGM Q1 2026 Audio Webcast
(https://events.q4inc.com/attendee/950545257)

·      After the opening remarks, there will be a 30 minute Q&A
session for analysts and investors

o  Those wishing to ask a question should use the dial ins below and register
via the following link: Investor Registration for Q&A
(https://registrations.events/direct/Q4I337863)

 

US Toll free         + 1 888 500 3691

US                          + 1 646 307 1951

UK Toll free       +44 800 358 0970

UK                          +44 20 3433 3846

International dial-in numbers
(https://registrations.events/directory/enhanced/global/qe01_p/)

 

 Contacts:

 Entain plc
 Investor Relations

 investors@entaingroup.com (mailto:investors@entaingroup.com)

 Media

        media@entaingroup.com

 MGM Resorts International
 Investment Community

Sarah Rogers - Senior Vice President, Corporate Finance and Treasurer
 srogers@mgmresorts.com (mailto:srogers@mgmresorts.com)

 Howard Wang - Vice President, Investor Relations

       hwang (mailto:hwang@mgmresorts.com) @mgmresorts.com
media@mgmresorts.com (mailto:media@mgmresorts.com)
 (mailto:hwang@mgmresorts.com)

 News Media

 Brian Ahern - Executive Director, Communications

 

 BetMGM
 Nitish Basandra - Director, Corporate Development & IR
          nitish.basandra@betmgm.com (mailto:nitish.basandra@betmgm.com)

 Jennifer Arapoff - Director, Public Relations
                            jennifer.arapoff@betmgm.com
 (mailto:jennifer.arapoff@betmgm.com)

 

Notes:

 

1: Net Revenue, Contribution, and Adjusted EBITDA are based on how management
analyzes the performance of the business, which are not prepared in accordance
with GAAP. Adjusted EBITDA reflects the impact of employee long-term incentive
compensation programs and represents EBITDA prior to deducting Parent Fees.
Refer to "Non-GAAP Financial Information" section below for additional
detail.

2: BetMGM's independent registered public accounting firm has not audited,
reviewed or performed any procedures with respect to these estimates. During
the course of the preparation of BetMGM's audited financial statements, BetMGM
and its auditors may identify items that would require material adjustments to
these estimates. As a result, these estimates constitute forward-looking
statements and, therefore, investors are cautioned that they are subject to
risks and uncertainties, including possible adjustments.

3: Totals may not sum due to rounding.

4: Handle reflects the total Online Sports handle (cash + bonus bets) taken in
the period.

5: Average Monthly Actives are equal to the average of unique monthly actives
over the period, regardless of product played; monthly actives include players
that place 1+ bets within the month.

6: BetMGM operates iGaming and Online Sports Betting in five markets and
Sports Betting only (combined online and retail) in 25 markets.

7: Gross Gaming Revenue (GGR) market share consists of trailing three months
March 2026, February 2026, and January 2026 as latest reported for U.S. sports
betting markets where BetMGM was active (online and retail), February 2026 for
U.S. iGaming markets where BetMGM was active, and February 2026 for the
Ontario market. Internal estimates used where operator-specific results are
unavailable.

8: Handle and NGR per Active are equal to each respective metric over the
period divided by the sum of the total monthly actives during the same period.

9: Includes both Online Sports and Retail handle for Nevada.

10: Parent Fees is the operating expense to BetMGM for the provision of
certain licenses and services by affiliates of MGM and Entain. Parent Fees are
governed by agreements entered into at the time of formation of the venture,
and became effective upon BetMGM achieving long-term profitability. Reference
to parents throughout includes our MGM and Entain parent entities and their
MGM and Entain affiliates.

11: Minimum unrestricted cash balance of $100-125 million may be adjusted as
the business continues to scale and drives increased working capital needs.

 

Supplementary financial disclosures

BetMGM has updated its financial disclosure practices, aiming to provide
investors with more comprehensive and transparent information regarding its
financial position and operations. These enhanced disclosures will include a
more granular breakdown across different segments to provide greater insight
into performance drivers.

 

Forward-looking statements

This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, which involve
substantial risks and/or uncertainties, including those described in the MGM
Resorts International public filings with the Securities and Exchange
Commission. BetMGM has based forward-looking statements on management's
current expectations, assumptions and projections about future events and
trends. Examples of these statements include, but are not limited to, BetMGM's
expectations regarding its financial outlook (including forecasted net
revenues from operations, EBITDA, and expected distributions to Entain and MGM
Resorts), projected market share position, its expected growth in new and
existing jurisdictions, product capabilities, and achievement of key
milestones. These forward-looking statements are not guarantees of future
performance, conditions or results, and involve a number of known and unknown
risks, uncertainties, assumptions and other important factors, that could
cause actual results or outcomes to differ materially from those discussed in
the forward-looking statements. Included among the important factors that
could cause actual results to differ materially from those indicated in such
forward-looking statements are: the significant competition within the gaming
and entertainment industry; BetMGM's ability to execute on its business plan;
changes in applicable laws or regulations, particularly with respect to
iGaming and online sports betting; BetMGM's ability to manage growth and
access the capital needed to support its growth plans; and BetMGM's ability to
obtain the required licenses, permits and other approvals necessary to grow in
existing and new jurisdictions. In providing forward-looking statements,
BetMGM is not undertaking any duty or obligation to update these statements
publicly as a result of new information, future events or otherwise, except as
required by law. If BetMGM updates one or more forward-looking statements, no
inference should be drawn that it will make additional updates with respect to
those other forward-looking statements.

 

Non-GAAP Financial Information

In this press release we provide certain financial measures, including Net
Revenue from operations, Contribution, EBITDA and Adjusted EBITDA, which have
not been prepared in accordance with GAAP. BetMGM believes these measures,
which it uses for its own analysis of operations, are useful to supplement the
results presented in accordance with GAAP. These non-GAAP financial measures,
which may not be comparable to other similarly titled measures presented by
other companies, should not be considered a substitute for, or superior to,
the financial information prepared in accordance with GAAP. BetMGM defines Net
Revenue from operations as revenue, adjusted to reflect revenue related to
certain operations on a gross basis, primarily related to the Company's Nevada
digital and retail sports betting operations. If BetMGM presented Net Revenue
from operations in accordance with GAAP, then BetMGM would present the
revenues associated with its Nevada digital and retail sports betting
operations differently, until such time as BetMGM is licensed as a Nevada
gaming operator. Currently under GAAP, its calculation of Net Revenue would be
on a basis net of operating costs, such that the GAAP reported Net Revenue
would be lower than the Net Revenue reported herein, with net income remaining
the same. We define EBITDA as net income (loss) before the impact of interest
income or expense (net), income tax provision or benefit, and depreciation and
amortization and Adjusted EBITDA is further adjusted to add back the Parent
Fees. We define Contribution as Net Revenue, less cost of revenue (exclusive
of depreciation and amortization) and marketing acquisition spend.

 

About BetMGM

BetMGM is a market leading sports betting and gaming entertainment company,
pioneering the online gaming industry. Born out of a partnership between MGM
Resorts International (NYSE: MGM) and Entain Plc (LSE: ENT), BetMGM has
exclusive access to all of MGM Resorts' U.S. land-based and online sports
betting, major tournament poker, and online gaming businesses. Utilizing
Entain's U.S.-licensed, state-of-the-art technology, BetMGM offers sports
betting and online gaming via market-leading brands including BetMGM, Borgata
Casino, Party Casino and Party Poker. Founded in 2018, BetMGM is headquartered
in New Jersey. For more information, visit www.betmgminc.com

 

About Entain plc

Entain plc (LSE: ENT) is a FTSE100 company and is one of the world's largest
sports betting and gaming groups, operating both online and in the retail
sector. The Group owns a comprehensive portfolio of established brands; Sports
brands include BetCity, bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds,
Sportingbet, Sports Interaction, STS and SuperSport; Gaming brands include
Foxy Bingo, Gala, GiocoDigitale, Ninja Casino, Optibet, Partypoker and
PartyCasino. The Group operates the TAB NZ brand as part of a long-term
strategic partnership with TAB New Zealand. The Group owns proprietary
technology across all its core product verticals and in addition to its B2C
operations, provides services to a number of third-party customers on a B2B
basis.

The Group has a 50/50 joint venture, BetMGM, a leader in sports betting and
iGaming in the US. Entain provides the technology and capabilities which power
BetMGM as well as exclusive games and products, specially developed at its
in-house gaming studios.

The Group is tax resident in the UK and is the only global operator to
exclusively operate in domestically regulated or regulating markets operating
in over 30 territories.

Entain is a leader in ESG, being AAA rated by MSCI, and a member of the
S&P Global Sustainability Yearbook and the FTSE4Good. For more information
see the Group's website: www.entaingroup.com (http://www.entaingroup.com)

LEI: 213800GNI3K45LQR8L28

 

About MGM Resorts International

MGM Resorts International (NYSE: MGM) is an S&P 500® global gaming and
entertainment company with national and international destinations featuring
best-in-class hotels and casinos, state-of-the-art meetings and conference
spaces, incredible live and theatrical entertainment experiences, and an
extensive array of restaurant, nightlife and retail offerings. MGM Resorts
creates immersive, iconic experiences through its suite of Las Vegas-inspired
brands. The MGM Resorts portfolio encompasses 31 unique hotel and gaming
destinations globally, including some of the most recognizable resort brands
in the industry. The Company's 50/50 venture, BetMGM LLC, offers sports
betting and online gaming in North America through market-leading brands,
including BetMGM and partypoker, and the Company's subsidiary, LV Lion Holding
Limited, offers sports betting and online gaming through market-leading brands
in several jurisdictions throughout Europe and Brazil. The Company is
currently pursuing targeted expansion in Asia through an integrated resort
development in Japan. Through its Focused on What Matters philosophy, MGM
Resorts commits to creating a more sustainable future, while striving to make
a bigger difference in the lives of its employees, guests and in the
communities where it operates. The global employees of MGM Resorts are proud
of their company for being recognized as one of FORTUNE® Magazine's World's
Most Admired Companies®. For more information, please visit us at
www.mgmresorts.com. Please also connect with us @MGMResortsIntl on X as well
as Facebook and Instagram.

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