BetMGM Slashes Outlook Again, Delays $500M Profit Target to Beyond 2027
MGM sits 59% above its 52-week low of $29.185.
Summary
BetMGM, the joint venture between MGM Resorts and Entain, cut its full-year guidance for the second time this year, now expecting revenue and EBITDA at the low end of $2.9B-$3.1B and $300M-$350M ranges. The company also abandoned its 2027 $500M EBITDA target, citing intensifying competition from prediction market platforms like Kalshi and new offerings from FanDuel and DraftKings. This directly pressures MGM's digital growth narrative and comes amid the ongoing buyout evaluation by People Inc. at $48.30 per share. The outlook downgrade raises questions about the valuation assumptions in that deal and the standalone earnings power of MGM's online segment. With MGM shares at $46.40, the market is already pricing in deal uncertainty; further erosion in BetMGM's competitive position could weaken MGM's negotiating stance or long-term value if the buyout falls through.
At the time of this announcement, MGM was trading at $46.40 on NYSE in the Trade & Services sector, with a market capitalization of approximately $11.8B. The 52-week trading range was $29.19 to $51.59. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.