BetMGM is changing how it invests across the U.S. gambling market, putting more resources into states where it can offer online casinos alongside sports betting. CEO Adam Greenblatt outlined the strategy during the company’s October 13 business update, explaining that BetMGM is scaling back spending in states where sports betting is the only legal online gambling product.
Online casinos remain the focal point of BetMGM’s offerings. Greenblatt said iGaming now accounts for roughly 70% of the company’s business. Online casino revenue reached $483 million during Q3, more than double the $216 million generated by online sports betting.
Those numbers help explain why BetMGM is directing more resources toward states where both products are available. The operator is also placing greater emphasis on retaining higher-value customers instead of aggressively pursuing new recreational bettors.
That doesn’t mean BetMGM is abandoning states without legal online casinos. Instead, the company is reducing marketing spending in these areas since they don’t provide the same potential return on investment.
BetMGM’s decision highlights the major importance of online casino gaming to its overall business. Unlike sports betting, which sees major spikes in activity around events like the NFL season and March Madness, online casino gaming gives operators a more consistent source of revenue throughout the year.
Users can play slots, blackjack, and other casino games regardless of the sports calendar. That creates additional opportunities for BetMGM to generate revenue from its existing customer base.
For states that only permit sports betting, the lack of an online casino limits BetMGM’s ability to generate revenue. That makes markets allowing both products a lot more attractive, particularly as the operator focuses on profitability rather than growing its customer base at any cost.
The shift comes after BetMGM reported stronger financial results despite a decline in its active player base. The company generated $710 million in third-quarter revenue, a 7% increase from the previous year. Adjusted EBITDA also jumped 112% to $86 million.
BetMGM’s revenue increased despite fewer active players, reflecting the company’s growing emphasis on getting more value from its existing customers.
These results suggest that BetMGM doesn’t need to keep expanding its customer base to increase revenue. Instead, it can focus on markets and users that provide stronger returns.
BetMGM’s decision could have implications for several major states where sports betting is legal but online casinos remain prohibited. New York, Ohio, Massachusetts, and North Carolina all allow online sports betting without offering regulated online casino gaming.
These markets could see less aggressive spending from BetMGM as the company redirects resources toward states where it can offer both sports betting and online casino. That could mean fewer promotions for users in states without online casinos due to the reduced investment from BetMGM.
