BetMGM LLC, the sports betting and iGaming joint venture between MGM Resorts International (NYSE: MGM) and Entain plc (LSE: ENT), reported first-quarter net revenue of $696 million, representing a 6% increase from the prior year period.

The company's iGaming division generated $481 million in net revenue, up 9% year-over-year, while online sports revenue reached $203 million, a 4% increase. Retail and other operations contributed $11 million, down 43% from the previous year.

Adjusted EBITDA for the quarter totaled $25 million, an 11% improvement from $22 million in the same period last year. The company made its first parent fee payment of $3 million to MGM Resorts and Entain during the quarter.

Average monthly active users declined 9% year-over-year to 975,000, which the company attributed to disciplined customer acquisition and ongoing player management strategies. Sports betting handle increased 3% to $4.2 billion.

BetMGM updated its full-year 2026 guidance, now expecting net revenue between $2.9 billion and $3.1 billion, down from the previous range of $3.1 billion to $3.2 billion. The company maintained its adjusted EBITDA guidance of $300 million to $350 million but expects results toward the lower end of that range.

"BetMGM is delivering on our strategic plan, carrying forward the initiatives that drove our transformation in 2025," said Chief Executive Officer Adam Greenblatt. "We are generating sustainable, profitable growth and paying cash to our parent companies."

The company holds a 13% gross gaming revenue market share in its active markets, including 20% in iGaming and 7% in online sports betting. BetMGM operates iGaming and online sports betting in five markets and sports betting in 25 markets across North America.

BetMGM stated it remains on track to achieve $500 million in adjusted EBITDA by fiscal year 2027, according to the company's press release.