BetMGM released its Q3 figures this week, followed by a conference call led by CEO Adam Greenblatt, and CFO Gary Deutsch.
The online operator, 50% owned by Entain and 50% owned by MGM Resorts International, saw a 23% increase in net revenue to $667m. When broken down, this was comprised of iGaming growing 21% to $454m and online sports increasing 36% to $202m. BetMGM, unlike FanDuel and DraftKings, is very online casino-heavy in terms of revenue.
Greenblatt explained that this growth came from improvements to marketing, player management, products and platforms - in particular, app speeds and performance.
One of the most popular new features was the recently updated integrated Rewards Store that allowed players to track progress and redeem prizes through the interface.
Greenblatt also explained that, at the moment, BetMGM has an unrestricted cash balance of $300m, and that the brand would distribute at least $200m to its parent companies before the end of 2025. Going forward, BetMGM hopes to keep distributing any excess cash above the $100m line each quarter.
BetMGM released the omnichannel product Rakin' Bacon in both land-based and online platforms, which has become a top 5% product since launch.
The brand also focused on cross-selling opportunities, such as developing NFL-themed casino games that subtly promote the sports betting side of the business.
The final update regarding content is that the operator is currently collaborating with The Price is Right and "all signs are showing early success".
BetMGM will launch in Missouri on 1 December 2025, which will be the first new jurisdiction since Carolina in early 2024.
However, perhaps the most interesting point of the conference call was Greenblatt's stance on prediction markets.
Rather than waiting for the topic to come up during the questions and answers segment, he took it head-on during his business analysis: "Our position is clear and is aligned with 40 state attorney generals and tribal partners. Prediction markets are, in essence, illegal sports betting."
He went on to explain that prediction markets not offer a suitable level of player protection, responsible gambling tools, do not uphold responsible principles, nor do they pay state taxes in the jurisdictions they operate in.
Greenblatt went on to explain that prediction markets are "not good for the integrity of sports" or the wider gambling industry in general.
Finally, one of the investors asked about the discrepancy between operators when it comes to prediction markets.
Last week, the Nevada Gaming Control Board when public in its fight against prediction markets, when it demanded to see all correspondence between Kalshi and the Commodity Futures Trading Commission (CFTC).
Greenblatt shed light on the fact that regulators have not been shy behind the scenes, either.
"We've received letters from a number of state regulators, where they have been really explicit on their perspective of prediction markets," Greenblatt said. "They have said that your license becomes questionable if you offer prediction markets in your state, and we will consider your license very carefully if you offer prediction markets anywhere."
So while it seems BetMGM is not looking to dive into the prediction market scene any time soon, it is seeing relative success with its online casino segment. But the lack of states with iGaming regulation to date is holding this back.
Although Greenblatt was vocal that his decision had been made in solidarity with state attorneys, regulators and Tribal operators, it might just not make sense for the brand to risk its reputation in the industry if two-thirds of its revenue comes from online casino players and not sports betting.
After all, both FanDuel and DraftKings are looking to launch prediction markets, but also primarily attract the latter.
It is also worth noting that Bill Hornbuckle, MGM Resorts International CEO, has also been vocal in his opposition to the product.
During his last conference call, Hornbuckle said that prediction markets were "not something that we endorse."
BetMGM released positive Q3 figures, followed by a conference call led by Adam Greenblatt, CEO and Gary Deutsch, CFO
