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(AsiaGameHub) –   Entain anticipates a more muted performance from its North America-focused BetMGM joint venture, at a time when the London Stock Exchange-listed group’s share price is experiencing volatile trading.

In a Q1 trading update, Entain—along with its JV partner MGM Resorts—projects BetMGM’s net FY2026 revenue to range between $2.9bn-$3.1bn (£2.1bn-£2.2bn). This would signal continued growth compared to the $2.8bn recorded last year.

However, Entain noted it expects BetMGM’s adjusted EBITDA to land at the ‘lower end’ of the forecasted $300m-$350m range. This comes despite adjusted EBITDA climbing 11% to $25m (Q1 2025: $22m) in the first three months of the year.

By segment, iGaming continued to outperform sportsbook revenue: the former hit $481m, while the latter reached $203m. These figures represent year-over-year growth of 9% (from $443m) and 4% (from $194m), respectively.

BetMGM’s total net revenue stood at $696m, a 6% year-over-year increase from Q1 2025’s $657m. The company remains committed to its goal of hitting $500m in adjusted EBITDA by FY2027.

Entain emphasized the significance of BetMGM’s iGaming product during the quarter, citing strong player engagement momentum. Meanwhile, the slower growth in sports betting revenue was attributed to player-friendly sports results and ‘increased promotional generosity’.

“Although it has been a steady start to the year, BetMGM is delivering on our strategic plan, carrying forward the initiatives that drove our transformation in 2025,” said Adam Greenblatt, Chief Executive Officer of BetMGM.

“We are generating sustainable, profitable growth and paying cash to our parent companies. Our iGaming business is growing at scale, and our Online Sports business continues to strengthen despite a challenging market in Q1.

“As we look to the rest of the year, we will continue to focus on our areas of strength, particularly in iGaming, multi‑product states, omnichannel in Nevada, and servicing our premium mass sports players.

“These give us confidence that we will deliver on our updated 2026 guidance as well as continue on the path to $500m of Adjusted EBITDA in 2027.”

Entain’s shares get no relief following BetMGM update

Entain’s shares plummeted to a 12-month low immediately after the announcement, dropping from 559.4p to 526.6p between 12:00-12:05pm GMT. The 526.6p price is notable as it matches the lowest level Entain’s shares have traded at since early April 2025.

Shares have since partially recovered: at the time of writing (25 minutes later, at 12:30pm), the company’s share price was 544.4p.

The London-headquartered, Isle of Man-domiciled operator is at risk of falling out of the LSE’s FTSE 100, currently ranking 98th on the index with a shrinking market cap of £3.48bn.

It would need further declines to drop off London’s prestigious public company list in the FTSE Russell’s June quarterly review, but Harbour Energy—an oil and gas firm and FTSE 250 member—now has a higher market cap (£4.47bn) than the Stella David-led company.

Other FTSE 250 firms with larger market caps than Entain include Ithaca Energy (£4.25bn), Investec (£4.03bn), Balfour Beatty (£3.96bn) and Aberdeen Group (£3.70bn).

Another major concern for Entain’s investors and analysts is the UK tax situation. Remote Gaming Duty (RGD) rose from 21% to 40% earlier this month, and this heavier tax burden is expected to trigger a major restructuring of the British market—key for Entain as operator of the Ladbrokes Coral high-street and online brands.

Investors will also closely watch the New York Stock Exchange when trading opens in a few hours to check MGM Resorts International’s share price activity.

Its stock has been an outlier in the iGaming space over the past 12 months, gaining market favor and rising over 24% to $36.75. However, it remains to be seen how the market will react to today’s update.