BetMGM’s casino now carries 70% of its revenue while the sportsbook sits flat.
BetMGM reported Q2 on 28 July. Net revenue rose 3% to $711M, but adjusted profit fell 14% to $74M.
The split tells the story. iGaming grew 8% to $483M and is now about 70% of the business, while online sports was flat at $228M and gave back most of its retail margin to customer-friendly results.
The casino is the part that compounds. It runs on a house edge and a player database the operator owns, and it keeps paying whether or not a given weekend goes the book’s way.
The sportsbook is the part under attack. Prediction markets are taking volume, results went the players’ way, and BetMGM had to spend more to hold its customers. The durable value sits in the casino and the database, and the market is starting to price the two halves differently.
Expect BetMGM to lean harder on iGaming and its MGM Rewards database, and to keep pushing for online-casino bills in new states.
The tell to watch: whether the sportsbook can grow profit again without buying it back in promotions. If it cannot, the casino is the whole equity story.