BetMGM CEO Adam Greenblatt and CFO Gary Deutsch fielded analyst questions April 28 in a brisk half-hour earnings call recapping the first quarter. The company exceeded Wall Street expectations and its own guidance, beating the latter by 17 percent. That guidance, however, wasn’t updated.
“At this stage, it behooves us to be rather cautious when commenting on the rest of the year,” Greenblatt explained. He did allow that he expected growth in handle to slow down.
BetMGM reported 68 percent growth in online sports betting net revenue, including a 29 percent increase in money wagered. Parlay wagering was up 4.8 percent and average users bet 27 percent more with the company. BetMGM also notched $133 million in igaming profit, along with a $154 million return on investment, to end the quarter $22 million in the black.
“The business is as healthy as it’s ever been,” began Greenblatt. “Both sides of the business experienced strong top-line growth.” He brushed off $30 million in poor hold, lost to BetMGM by adverse March Madness outcomes. “We’re focused on the value of our players, not just quantity. We had a very satisfactory start to the year. 2025 is the year we turn the corner. We see continued strong momentum. That said, we are only a quarter in.”
Greenblatt said BetMGM was feeling no impact from macroeconomic uncertainties. “What we’re seeing is really rude health.” As for the promotional environment, “We’re seeing [it is] pretty stable and we’re actually seeing those customer-acquisition costs moderate.”
“Promotions are a big inflator of handle,” Deutsch warned. Fewer promotions would mean less money wagered. “Players become accustomed to a certain level of promotional investment,” so moderation is required when cutting back on free play, he added.
Greenblatt continued that the sports betting strategy was to serve all customers “magnificently,” but to focus capital outlays on higher-value ones. By contrast, in igaming “we are an every-man and every-person company.”
The issue of prediction markets and their encroachment on sports betting reared its head. Greenblatt opined, “We’re at the intersection between states rights” and federal prerogatives, something that would be sorted out in the courts. He thought the Bradley Act, outlawing most sports betting, had been disposed of, but apparently not.
The CEO allowed “a degree of risk” from prediction markets in sports betting-enabled states. “We know from other international markets that [predictions] are a very niche market. We’ll participate if required.”
As for potential “tax creep,” as one stock analyst put it, Greenblatt said BetMGM was continuing to lobby for the most reasonable and appropriate rates possible. He didn’t see a broad wave of tax increases coming, but local political phenomena.
Greenblatt noted that it was helpful to his cause that there was increasingly greater data available on the size of the illegal market. He added that macroeconomic fears might redound to BetMGM’s benefit in the form of more legalized, taxed and regulated OSB and igaming. He did allow that there was “some risk” of tax boosts in New Jersey, Maryland and Colorado (where tax-free free bets are under legislative scrutiny).
On the plus side, Greenblatt expected Missouri to launch OSB by December 1, possibly sooner. And in Alberta, igaming and sports betting should be incepted by the first quarter of 2026. Greenblatt said BetMGM’s growing market share in Ontario boded well for Alberta.
“I don’t think we’re missing out on anything,” replied Greenblatt when asked about merger-and-acquisition activity. BetMGM, he said, has Entain’s entire slate of technology on tap.
Instead, he said, BetMGM would be working on more in-house games, live wagering, and improving speed and performance. “We want to give our players a really special, premium experience.”
