Entain expects a more subdued performance from the North America-facing BetMGM joint venture, amid a rocky trading period for the London Stock Exchange-listed group’s share price.

A Q1 trading update revealed that Entain, and by extension its JV partner MGM Resorts, expects BetMGM’s net FY2026 revenue to be between $2.9bn-$3.1bn (£2.1bn-£2.2bn). This would mark continued growth against the $2.8bn recorded last year.

However, Entain added that it expects BetMGM’s adjusted EBITDA to be in the ‘lower end’ of the projected range of between $300m-$350m. This is despite adjusted EBITDA increasing 11% to $25m (Q1 2025: $22m) during the first three months of the year.

Segment-by-segment, iGaming continued to outpace sportsbook income, with the former coming in at $481m and the latter at $203m. This represented respective growth of 9% and 4% from $443m and $194m the year prior.

Overall net revenue for BetMGM stood at $696m, up 6% year-over-year from $657m in Q1 2025. The company has been steadfast in its ambition to reach $500m adjusted EBITDA in FY2027.

Entain has stressed the significance of BetMGM’s iGaming product during the quarter, citing player engagement momentum, while the more subdued growth for sports betting revenue was attributed to player friendly sports results and ‘increased promotional generosity’.

“Although it has been a steady start to the year, BetMGM is delivering on our strategic plan, carrying forward the initiatives that drove our transformation in 2025,” said Adam Greenblatt, Chief Executive Officer of BetMGM.

“We are generating sustainable, profitable growth and paying cash to our parent companies. Our iGaming business is growing at scale, and our Online Sports business continues to strengthen despite a challenging market in Q1. 

“As we look to the rest of the year, we will continue to focus on our areas of strength, particularly in iGaming, multi‑product states, omnichannel in Nevada, and servicing our premium mass sports players. 

“These give us confidence that we will deliver on our updated 2026 guidance as well as continue on the path to $500m of Adjusted EBITDA in 2027.”

No respite for Entain shares after BetMGM update

Entain shares plummeted to a 12-month-low immediately after the announcement, dropping from 559.4p to 526.6p in the five minutes between 12:00-12:05pm GMT. This price of 526.6p is significant, as it resembles the lowest point at which Entain shares have traded since the beginning of April 2025.

Shares have since somewhat recovered however, with the company boasting a share price of 544.4p at the time of writing – just 25 minutes later at 12:30pm.

The London-headquartered, Isle of Man-domiciled operator is flirting with danger on the LSE’s FTSE 100 though, currently ranking in 98th on the index with a dwindling market cap of £3.48bn. 

It will have to take further hits to fall off London’s most prestigious list of public companies in the FTSE Russell quarterly review this June, but oil and gas production firm and FTSE 250 constituent Harbour Energy now has a higher market cap (£4.47bn) than the Stella David-led firm. 

Other FTSE 250 constituents with higher market caps than Entain include Ithaca Energy (£4.25bn), Investec (£4.03bn), Balfour Beatty (£3.96bn) and Aberdeen Group (£3.70bn).

Another key elephant in the room for Entain investors and analysts is of course the UK tax situation. Remote Gaming Duty (RGD) went up from 21% to 40% earlier this month, and the heavier tax burden is expected to lead to a major restructuring of the British market – a key one for Entain as operator of the Ladbrokes Coral high-street and online brands.

Investors will also be keeping a close watch on the New York Stock Exchange in a couple of hours time when trading opens, to check the activity of MGM Resorts International’s share price. 

Its stock has been an anomaly in the iGaming space in the past 12 months, proving popular with the market and up by over 24% to $36.75 in that time. It remains to be seen how the market will react to today’s update, though.