Entain MGM BetMGM 3Q26 Reiterating FY guidance after solid 3Q

Equity Research 13 October 2026 | 12:50PM BST

Entain / MGM: BetMGM 3Q26: Reiterating FY guidance after solid 3Q

BetMGM (a 50/50 JV between Entain and MGM) released its 3Q26 business update Ben Andrews, CFA | today (13th October). Goldman Sachs International

Revenue: 3Q26 net revenue came in at $710mn, up +7% yoy. Within this, iGaming Lizzie Dove | revenue came in at +6% yoy in 3Q (vs. +8% yoy in 2Q). OSB net revenue grew +7% Goldman Sachs & Co. LLC

yoy (vs. flat in 2Q), within which: (1) handle growth was +3% yoy (vs. +2% in 2Q), (2) Poppy Boyd-Taylor | poppy.boyd- GGR hold was up +55bps yoy to 10.7% (vs. 2Q: 10.3%), and (3) promo intensity Goldman Sachs International increased by c.25bps (as % of handle) yoy, leading to NGR hold up +30bps yoy. Leo Mose | EBITDA: BetMGM’s EBITDA was +$86mn in 3Q26 (vs. 3Q25: c.+$41mn, implying a Goldman Sachs International yoy drop-through of over 100%), with positive contribution from both Online Joey Gaebler | segments. Goldman Sachs & Co. LLC Market share: In the three months to July/Aug (depending on the latest state Nina Flinn | reported month), BetMGM’s GGR market share was sequentially stable in OSB (8%) Goldman Sachs & Co. LLC and iGaming (20%), broadly consistent with our industry data trackers.

Outlook: BetMGM reiterated expectations of: (1) FY26 net revenue towards the lower end of $2.9-3.1bn (vs. Visible Alpha Consensus Data of $2.93bn), (2) FY26 Adj. EBITDA towards the lower end of $300-350mn (vs. consensus at $275mn).

Our view: BetMGM’s 3Q26 results were consistent with prior messages overall, and some relief that FY26 revenue/EBITDA guidance was reiterated (after cutting guidance elements at both 1Q26 and 2Q26). iGaming revenue growth decelerated slightly vs. prior quarters, consistent with US industry data, while OSB delivered modest handle growth and hold expansion. BetMGM reiterated confidence in achieving its target of $500mn Adj. EBITDA over the coming years (which the Visible Alpha Consensus median expects in FY28).

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Exhibit 1: BetMGM quarterly results summary $mn

BetMGM ($mn) 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26

iGaming net revenue % yoy growth 13% 7% 14% 17% 27% 29% 21% 18% 9% 8% 6%

Handle 3,174 2,740 2,800 4,361 4,088 3,427 3,159 4,506 4,218 3,490 3,240 % yoy growth 1% 18% 26% 38% 29% 25% 13% 3% 3% 2% 3% GGR Hold % 8.7% 9.3% 9.9% 7.4% 8.2% 9.8% 10.1% 10.2% 8.8% 10.3% 10.7% NGR Hold % 3.6% 5.3% 5.3% 3.3% 4.8% 6.6% 6.4% 6.2% 4.8% 6.5% 6.7% OSB net revenue % yoy growth -8% 18% 38% -19% 68% 56% 36% 94% 4% 0% 7%

Retail/other net revenue % yoy growth -38% -19% -4% -78% -22% -5% -47% 161% -43% -100% 5%

BetMGM net revenue % yoy growth 3% 9% 19% -1% 34% 36% 23% 40% 6% 3% 7%

EBITDA - % margin -27% 2% -3% -19% 3% 12% 6% 9% 4% 10% 12%

Certain metrics in 2Q24/4Q24 are calculated by GS

Source: Company data, Goldman Sachs Global Investment Research

Entain investment thesis: We are Buy rated on Entain. Our thesis is predicated on improved Online momentum and a clearer route for BetMGM’s profitability inflection to be reflected in Entain’s share price, which together contribute to an improved risk/reward on Entain’s shares at the current valuation. When we upgraded the stock to Neutral (from Sell) in August 2024, we argued that after a significant reset in Entain’s valuation and consensus earnings expectations, the stock’s risk/reward had improved, but that more evidence of delivery was needed on sustaining the turnaround of Online growth and improving BetMGM’s profitability in the US. We now believe the risk/reward has turned increasingly positive following: (1) Entain having delivered on certain key elements of the Online turnaround; (2) the strategic…