BetMGM cuts outlook as prediction market competition grows

July 27 (Reuters) - U.S. ‌online ​gambling ​operator BetMGM on Tuesday downgraded its annual outlook for the second ‌time this year and pushed back ⁠its target of reaching $500 million in profit, ‌as competition from prediction ‌market platforms mounts intensifies.

Licensed sportsbook operators in the U.S. are facing growing ​pressure from prediction market platforms such as Kalshi, while FanDuel, DraftKings and ⁠Fanatics have launched similar products, raising customer acquisition costs ​and threatening sports betting market share.

The company, a joint venture between ​Ladbrokes-owner Entain and U.S.-based ‌MGM Resorts, expects full-year net revenue and adjusted core profit ⁠to come in towards the lower end of its forecast ranges of $2.9 billion to $3.1 ⁠billion and $300 million to $350 million, respectively.

BetMGM also said ​it no longer expects to hit its $500 million adjusted core profit target by 2027, blaming ‌a more competitive landscape and regulatory complexity stemming from the ‌rise of prediction market platforms.

Entain shares ⁠were down marginally by ‌1120 GMT.

(Reporting ​by Yamini Kalia in Bengaluru; Editing by Ronojoy Mazumdar and Tasim ‌Zahid)

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