BetMGM has said it is targeting EBITDA of approximately US$500m in 2026.
In a briefing ahead of a call to investors and analysts on Monday, the operator, jointly owned by Entain and MGM Resorts International, added that it expects to reach the upper end of its guidance of between $1.8bn and $2bn in revenue this year.
Entain and MGM said BetMGM expects to be EBITDA profitable in the second half of the year.
As reported by Casino.org, MGM CEO Adam Greenblatt said in the investor call that the financial forecasts are “putting us in a position to be self-funded from here on.”
MGM CFO Gary Deutsch added: “While discussions of hold percents and win margins often focus on sports, we’ve also seen expansion of our NGR margin in igaming.
“This is also driven by bonus optimisation across our casino players as well as an increase in recreational players that we’ve acquired in the igaming states.
“Recreational players tend to prefer slots to table games. Slots are higher margin.”
Monday’s BetMGM update was crucial for both Entain and MGM amid fresh debate over the future of the operator and its two jointly-owning groups.
As reported by the Financial Times last week, Entain CEO Jette Nygaard-Andersen is under pressure from activist investors amid the group having to pay out £585m to settle bribery allegations surrounding its legacy Turkish business.
Entain has also faced criticism from some investors over its recent acquisition spree, including for its £750m deal to take over Polish operator STS this summer.
MGM, meanwhile, reportedly wants complete control of BetMGM and is prepared to wait until Entain is potentially sold before making its move.
