BetMGM Shifts Focus: Why Sports Betting Spend Is Dropping

Dr. Annelies De Vos · 2026-10-14

BetMGM is pulling back on sports betting. Not because it's failing, but because the math just doesn't add up anymore. The company announced it's cutting investment in lower-return US sports betting markets, and honestly, it makes sense. Prediction platforms are eating into the margins, and operators are feeling the squeeze. So what's the plan? BetMGM is doubling down on online casino gaming and high-value customers. It's a strategic pivot that could reshape how we think about the gambling industry. Let's break it down. ### The Prediction Market Problem Prediction markets like Kalshi and Polymarket have exploded in popularity. They offer a similar thrill to sports betting but with a different regulatory framework. That means they can operate with lower costs and often better odds for users. For traditional sportsbooks like BetMGM, this is a direct threat. "Competition from prediction platforms puts additional pressure on operators," said CEO Adam Greenblatt during the company's October 13 business update. He explained that BetMGM has become more selective about customer acquisition and market spending. In other words, they're not chasing every bettor anymore. ### BetMGM's New Strategy: Quality Over Quantity Instead of burning cash on promotions and sign-up bonuses for casual bettors, BetMGM is focusing on two things: - **Online casino gaming** – Slots, table games, and live dealer options have higher margins and more consistent revenue. - **High-spending customers** – VIPs and whales who bet big and stay loyal. This shift comes after a third quarter that saw revenue growth despite a decline in active sportsbook users. So even though fewer people are betting on sports, those who do are spending more. And the casino side is picking up the slack. ### What This Means for the Industry BetMGM's move is a bellwether. Other operators like DraftKings and FanDuel are watching closely. If prediction markets continue to grow, we might see more sportsbooks pivot to casino and iGaming. But it's not all doom and gloom. The US sports betting market is still huge, and BetMGM isn't abandoning it entirely. They're just being smarter about where they put their money. > "We're not retreating from sports betting. We're reallocating resources to where we see the best returns," Greenblatt added. That's a quote you can take to the bank. It's a classic business move: cut the fat, invest in the meat. ### The Bottom Line BetMGM is adapting to a changing landscape. Prediction markets are here to stay, and operators need to evolve. By focusing on online casino gaming and high-value customers, BetMGM is positioning itself for long-term profitability. Will it work? Only time will tell. But one thing's for sure: the days of reckless spending on sports betting are over. It's a new era, and only the smartest players will survive. For now, keep an eye on BetMGM's next earnings report. If revenue keeps growing while sportsbook users decline, you'll know the strategy is working. And if it doesn't? Well, they might have to go back to the drawing board.