The Takeaway: MGM, Entain Stock Up On Positive BetMGM Report
BetMGM returned $270 million to parent companies for the fiscal year, and sports betting is up. Roundup: Betting on margin is coming to prediction markets; Sporttrade applies to become CFTC-regulated.
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The Takeaway is a weekly commentary on trends and news in the gambling industry.
People who have been declaring the death of regulated online gambling companies in the US because of the rise of prediction markets probably want to look away.
BetMGM reported a stellar fiscal year on Wednesday morning that “exceeded expectations,” including $270 million returned to parent companies MGM Resorts and Entain.
Both companies had a good day on the stock market as a result:
Also from today’s report:
Net Revenue of $2.8 billion, up +33% YoY
iGaming Net Revenue up +24% YoY and Online Sports Net Revenue up +63% YoY
EBITDA of $220 million, up +$464 million YoY
Ongoing successful execution of BetMGM’s refined player engagement strategy supported by enhanced product and user experiences driving continued growth in player activity and retention
Expect FY 2026 Net Revenue between $3.1 - $3.2 billion and Adjusted EBITDA $300 - $350 million
Confidence in pathway to achieving $500 million Adjusted EBITDA in FY 2027
You can see the full report here.
Adam Greenblatt, Chief Executive Officer of BetMGM, commented:
“2025 was a record year for BetMGM, outperforming expectations with the execution of our refined strategy coming together at scale. Q4 2025 saw record performances, completing a year where both iGaming and Online Sports achieved step change results, reflecting robust engagement, improved player economics, sharper player management, and continued platform and product enhancements. BetMGM’s meaningfully improved profitability and material EBITDA generation now sees us returning cash to our parent companies and marks a clear inflection in our growth trajectory. Looking ahead to 2026 and beyond, the strong underlying metrics and health of the business continue to reinforce our confidence in our outlook as we enter the next phase of growth. As the industry continues to evolve, we will continue to focus on winning the BetMGM way.
More on BetMGM’s report from Bloomberg (paywall). BetMGM had raised guidance for the fiscal year back in October.
All of those results come as some have argued prediction markets pose an existential threat to traditional gaming operators. On Wednesday, Greenblatt signaled that prediction markets had no noticeable impact on BetMGM’s business.
The BetMGM report comes ahead of earnings calls for some of the biggest companies with US exposure to online gambling, including FanDuel parent company Flutter and DraftKings.
Play with a Plan
FanDuel has launched its rebranded Responsible Gaming platform: “Play with a Plan.” This approach is guided by behavioral research and is designed to promote existing responsible gaming tools in a manner that encourages introspective decision-making and proactive gaming management rather than restrictive messaging.
The goal of “Play with a Plan” is to help empower customers to evaluate their gaming habits proactively, providing actionable guidance and reinforcing FanDuel’s focus on making Responsible Gaming more intuitive and inviting for customers. As part of this effort, FanDuel has released a new Responsible Gaming spot:
Before we get to the roundup, I wanted to highlight some data Paysafe just put out ahead of the Super Bowl. Highlights below from a press release:
Half of Super Bowl fans to bet in regulated North American markets
In the countdown to this Sunday’s Super Bowl LX in Santa Clara, California, 51% of fans who’ll follow the football game in U.S. states and Canadian provinces with regulated sports-betting plan to bet online, according to research issued today by leading payments platform Paysafe (NYSE: PSFE). The company’s All the Ways Players Pay: Super Bowl report also indicates strong interest in legal betting from fans in this year’s host state, if California were to regulate sports-betting, as well as in Texas and Canada’s Alberta.
Appetite to legally wager in California, Texas, and Alberta – with the Canadian province expected to launch its jurisdiction before year-end – rivals the regulated market, with 52% of fans keen to wager on future Super Bowls. Across these currently unregulated jurisdictions and regulated sports-betting markets alike, fans consider payments crucial for online sports betting.
Surveying fans intending to bet in the regulated markets of Florida, Massachusetts, New Jersey, New York, Ohio, Pennsylvania, and Canada’s Ontario, the report reveals that 59% of them plan to place bets on game-day and 27% expect to wager more than usual.
Their top criteria when choosing an online sportsbook are brand trust (prioritized by 43%) and streamlined payouts (37%). Cashing out a Super Bowl bet seamlessly is considered more important than every other non-payment factor, including good odds (30%), UX (22%), promos (21%), and sports events (14%).
Zak Cutler, President of Global Gaming at Paysafe, commented: “Super Bowl LX is expected to generate a record $1.71bn in legal wagers from the U.S. market alone, with an unprecedented betting volume also likely in Canada’s Ontario. The game represents a massive growth opportunity for North American online sportsbooks, and our research indicates that operators that are laser-focused on their cashiers and streamlining the payment experience will give themselves an edge in a highly competitive market.”
Ifrah Law has been at the center of advancing iGaming in the U.S., shaping groundbreaking legislation, leading precedent-setting cases, and guiding clients that span the iGaming ecosystem through every phase of their business journey. Learn more at IfrahLaw.com.
Gambling news roundup
Sporttrade Submits for Federal Exchange and Clearing Registration (press release): Sporttrade, a Philadelphia-based financial technology company, today announced submission of Designated Contract Market (“DCM”) and Derivatives Clearing Organization (“DCO”) applications with the Commodities Futures Trading Commission (“CFTC”).
“Today marks the opening of an incredibly exciting chapter of the Sporttrade journey.” said Alex Kane, Founder and CEO. “The CFTC’s market-based regulatory framework enables Sporttrade to provide market participants an elevated level of efficiency, transparency, and consumer protection relative to what we’ve been able to offer to date.”
Since 2022, Sporttrade has been regulated as a state-licensed sports betting operator in five states; New Jersey, Colorado, Iowa, Arizona, and Virginia. Customers on the existing Sporttrade platform have come to expect quality service and tight spreads on an award winning platform.
“We had originally our technology under the assumption that the sports trading vertical would follow the trajectory of most other electronic markets, one towards efficiency and transparency powered by intermediation and institutional participation.” noted Kane. “Federal registration will thus allow us to finally unlock the full potential of our natively-built exchange, clearing, and broker technology in our pursuit to always put the customer first.”
The latest from me on prediction markets… What a time to be alive:
On the ground for all of that: People Waited Five Hours For Dystopia And Free Groceries From Kalshi (InGame)
Also, here’s an important follow-up on Crypto.com launching a standalone prediction market… Crypto.com To Allow Users To Bet On Margin (InGame): “OG also plans to provide access to CDNA’s margin prediction contracts offering through Crypto.com’s federally licensed futures commission merchant,” the press release said. “This will be the first prediction markets platform to offer margin trading.”
“Brokers are generally required to make sure that traders understand the risks involved before they start trading with margin. While margin trading is common in the financial world, it is virtually unheard of in regulated sports betting, largely due to the potential risks of allowing a bettor to lose more than they deposit.”
“The use of borrowed funds to fund traditional sportsbook accounts is heavily restricted in many legal sports betting states, and there is no state where regulated sportsbooks can offer direct margin trades in the way that financial institutions do.”
CFTC Withdraws Proposal Banning Prediction Market Sports Betting (Bloomberg, paywall): “The head of the Commodity Futures Trading Commission said the agency has withdrawn a Biden-era proposal that called for prohibiting sports and politics-related wagers on prediction markets.”
“The 2024 event contracts proposal reflected the prior administration’s frolic into merit regulation with an outright prohibition on political contracts ahead of the 2024 presidential election,” CFTC Chairman Michael Selig said in a statement.
Chris Christie: Prediction markets need to be regulated carefully (Morning Joe, video): “Former Gov. and American Gaming Association strategic consultant, Chris Christie, discusses the AGA’s stance on prediction markets being used as sports bettors.”
Kalshi Claims ‘Extortion,’ Then Recants in Feud Over User Losses (Bloomberg, paywall): “It began innocuously enough. A stock analyst pulled data on betting results to argue that users of booming prediction markets were losing money faster than on traditional gambling apps. Then it spiraled. Kalshi Inc., the biggest US prediction market, told Bloomberg the analysis wasn’t just wrong. It was part of an “extortion” plot by the startup behind the data.
The founder of Juice Reel, the small data outfit, stood by the numbers and said Kalshi’s allegations were a “complete fabrication.” It was Kalshi that had tried to pressure him to say the data was inaccurate, he said. Kalshi changed its tone hours later and said that while it continued to dispute the findings, “after further review, we don’t believe the intention was extortion.” Kalshi denied it pressured Juice Reel to repudiate the data.
Is the Super Bowl sports-betting ad surge slowing down? (Marketing Brew): “This year’s game is set to include spots from DraftKings and Fanatics, with the latter making its Big Game debut. But as the sports-betting market matures in a year full of major sporting events, some past Super Bowl advertisers are adjusting their strategies around the game, with some pulling back to focus on other marketing moments. … FanDuel will technically sit out this year’s game after running ads in three consecutive Super Bowls, but anyone who tunes in before the game begins might encounter the brand, which is running a weeklong campaign culminating in a spot set to air just ahead of kickoff.”
Interesting data from Missouri:
Geoff Zochodne@GeoffZochodneNote from Jefferies says the Missouri sports betting launch looked like "one of the strongest new state launches in recent years." MO's $111 in handle per adult in Dec. was more than NC ($76), KY ($81), and MA ($98). Also, prediction market cannibalization looked minimal:
1:51 PM · Feb 3, 2026 · 35.8K Views2 Reposts · 20 LikesIllinois Lawmakers Again Exploring iGaming Legalization (Sports Betting Dime): “For the second year in a row an Illinois lawmaker is wading back into the iGaming landscape. Rep. Edgar González, Jr. (D-104) introduced HB 4797, a bill to legalize iGaming in the Prairie State. The Internet Gaming Act will allow legal Illinois online casino games and license holders to partner with up to three iGaming operators if signed into law.”
Louisiana Parishes That Nixed Sports Betting Could Vote Again With New Bill (Legal Sports Report): “There is legal mobile sports betting in Louisiana, but it is not statewide after some areas voted against bringing betting into their backyards. The nine parishes, or counties, that did not approve mobile sports betting would get another chance to allow sports betting under HB 72. The bill was assigned to the House Committee on Administration of Criminal Justice. Sports betting in Louisiana launched in January 2022 after 55 out of 64 parishes approved it at the ballots in 2020.”
Virginia Online Casino Bill Advances with Another Narrow Vote (Covers): “Virginia lawmakers again narrowly advanced a real-money online casino regulation bill, continuing a multi-year legalization push while underscoring continued, bipartisan opposition. The House of Delegates’ General Laws gaming subcommittee voted 5-4 to advance the bill. It now heads to the House Appropriations Committee, which will further debate the measure before potentially sending the bill to the full House floor.”
Casino bill likely dead; sports betting may head to South Carolina Legislative Committee (WSAV): “It doesn’t look like South Carolina is taking a gamble on casinos anytime soon; however, sports betting may be headed to committee. South Carolina House members sent a bill that could have allowed a casino to be built in the state back to the House Ways and Means Committee. That means the legislation most likely is dead for this year. It won’t get out of committee before it can get a vote on the House floor.”
More on legislation from Straight to the Point:
A bunch of stuff about underage gambling:
Super Bowl is betting bonanza. Behind the scenes apps are busting kids (USA Today): “What’s easier to measure: the amount of underage reports filed with state regulators, as required by most state laws. USA TODAY obtained the reports from 10 states, including some from Missouri, where sports wagering just went live Dec. 1.”
“In Iowa, 84 reports of underage betting were sent to the state’s Division of Criminal Investigation − but it’s unclear if any got charged.”
“In Tennessee, sportsbooks notified the state’s Sports Wagering Council of 105 underage account usages in 2024. Last year, that number more than quadrupled. The council refers more than half of the reports to local district attorneys, but most take no action.”
“In Massachusetts, the state’s gaming commission requires companies to present data on underage access quarterly in public meetings.
DraftKings reported more than 4,807 underage registration attempts stopped last year and suspended 243 accounts that had placed illegal wagers in the state. FanDuel reported 186 attempts stopped and 330 suspensions.”
Betting on Boys: Understanding Gambling Among Adolescent Boys (press release): “Ahead of the Super Bowl, Common Sense Media today released a new research report on boys and gambling. “Betting on Boys: Understanding Gambling Among Adolescent Boys” reveals that video games, social media algorithms, and peers are closely associated with boys’ gambling habits. The report, which surveyed more than 1,000 adolescent boys age 11 to 17 across the United States, reveals that gambling is a common behavior among adolescent boys. Thirty-six percent of boys gambled in the last year, with that number varying from nearly a third of 11-year-olds to nearly half of 17-year-olds.”
Common Sense Media Study On Gambling Lacks Common Sense (Casino Reports): “By the time I was a senior in high school, I was an avid sports bettor, fantasy player, and card player. I wasn’t alone. Virtually every dude I knew who liked sports bet on them in one form or another and poker was everywhere. Which is why I’m wildly unimpressed by the pearl-clutching study by Common Sense Media that showed a third of boys aged 11-17 have gambled in the last year. A third? That’s it? Um, wow?”
💡My take: My experience was pretty much identical to Jeff, who wrote that piece. My friends and I were gambling on everything in high school in the 1990s. Poker, horse races, sports, fantasy sports. It was all going on in my friend group well before the internet was ubiquitous. I even ran a fantasy baseball league over the winters where we played for real money based on simulations of historical players. I wish I were joking.
In any event, I am with Jeff… that number actually seems low, to me, if it’s accurate. The important part is educating young men about gambling, and getting them help if they need it. Lots of young men gamble, and I am sure they aren’t always prepared for the consequences.
Congress approves first federal military gambling addiction research funding (SBC Americas): “U.S. military service members and the gaming industry are on course to receive a major boost if the latest Defense Appropriations Act is signed by President Donald Trump. The Defense Appropriations Act for FY2026, a bill that provides $838.7 billion in total spending, would establish federal government funding for gambling addiction research for the very first time. It would provide funding for research into gambling addiction in both active and veteran military members through the Department of Defense’s Peer Reviewed Medical Research Program (PRMRP), which gives grants for medical research and treatments.”
“This is an important step forward,” said National Council on Problem Gambling (NCPG) Executive Director Heather Maurer. “For the first time, federal research funding is being made available to study gambling addiction. This development is especially critical for service members and veterans who face elevated risk and have historically been underserved by research.”
New York casino process enters a new phase as questions abound and influence spreads (iGB): “Approximately six weeks ago, the downstate New York casino process concluded with all three finalists — Bally’s Bronx, Resorts World NYC and Metropolitan Park — receiving full commercial licences. After several years of intense competition, the dust has settled, but now several more years of hard work lie ahead. Resorts World plans a $5.5 billion expansion and renovation of its existing Queens facility; Metropolitan Park is an $8 billion mixed-use complex adjacent to Citi Field, also in Queens; and Bally’s will build a $4 billion integrated resort at its Bronx golf course.”
Betfred Deepens Technology Partnership With Sportradar To Ensure A Long-Term And Sustainable Retail Betting Offering (press release): Betfred has extended and expanded its longstanding agreement with Sportradar. As part of the agreement, Sportradar will upgrade the retail platform technology underpinning the operations of Betfred’s 1,300 retail outlets nationwide, ensuring a sustainable and engaging betting offering is available on the UK high street.
The additional multi-year scope of work further strengthens a partnership built over the past decade.
Under the terms of the agreement, Sportradar will oversee continuous improvements to the Betfred retail platform to ensure ongoing operational excellence and adherence to local regulation and compliance. Furthermore, the technical framework allows Betfred to integrate a multitude of Sportradar’s next generation products and services to deliver a contemporary in-shop experience.
Duncan McDonald, Head of Corporate and Retail Support, Betfred said: “This agreement re-affirms our joint commitment to one another, to develop new products and features that enhance our customer offerings. It future proofs our retail business and secures our partnership with Betfred’s in house technology team and Sportradar for years to come.”
Paolo Personeni, EVP, Managed Betting Services, Sportradar said: “In today’s hyper-competitive marketplace Sportradar is well positioned to help Betfred achieve its long-term growth objectives. With high street operations closely watched, the technological capabilities powering the Sportradar Retail Platform will allow Betfred to deliver a sustainable and long-term retail offering that engages today’s demanding sports bettors.”
The Handle
The Closing Line has launched The Handle, which provides granular, rolling data about the sports betting industry, along with monthly in-depth looks at online casinos and prediction markets.
To access The Handle content, you must have a free trial (just reply to this email and ask!) or become a paid subscriber of The Handle ($2,000 annually).
Here are some recent posts on December numbers:
