U.S. sports betting platform BetMGM said on Monday that its losses for the year would be bigger than previously expected as it invests heavily in marketing amid intense competition in the industry.
The joint venture between MGM Resorts tab and Entain reported a core loss of $123 million for the first half of the year, and said it expects losses in the second half to be similar to those levels.
Analysts at JP Morgan said the second-half forecast implied an annual core loss of about $250 million, compared with a JPM estimate of about $93 million in losses.
Shares in Entain dropped nearly 10% to their lowest since April 2020, when COVID lockdowns hit. MGM was down 1% in U.S. premarket trading.
