BetMGM CEO Adam Greenblatt announced a strategic realignment of the company’s US investment, directing capital toward higher-value customers and markets while scaling back spending in lower-return online sportsbook-only segments. The shift, detailed in recent investor communications, prioritizes iGaming and multi-product jurisdictions.
In remarks following the company’s third-quarter update, Greenblatt stated that BetMGM has maintained a “nimble and disciplined” approach, focusing on areas where the operator can achieve the most attractive returns. The strategy explicitly involves increasing focus on iGaming and multi-product states, with Nevada and Alberta cited as specific examples of markets receiving heightened attention.
Targeting Higher-Staking Players
The core of the pivot is a move toward higher-value, higher-staking players, particularly within online sports betting (OSB). Greenblatt explained that the company is reducing investment in certain lower-return OSB-only markets to optimize its marketing mix. This selective deployment of capital is designed to strengthen returns without sacrificing the operator’s overall market position.
“Consistent with our strategy, we’ve remained nimble and disciplined, leaning into better MGM strengths and where we can achieve the most attractive returns,” Greenblatt said. He added that this has allowed BetMGM to increase its focus on iGaming, multi-product states, Nevada, and most recently Alberta, while simultaneously targeting higher-value players in online sports betting.
Acquisition Costs Drop Post-World Cup
Greenblatt noted that the customer acquisition environment has improved significantly in recent weeks, specifically since the conclusion of the World Cup. He reported that the cost per acquisition (CPA) has meaningfully reduced, leading to predicted returns measured in months to payback that are the most favorable seen since the beginning of the year and the end of the previous year.
“What’s been very good for us in recent weeks, since the back end of the World Cup, is the acquisition environment has improved a lot,” Greenblatt said. “Our cost per acquisition has meaningfully reduced, and our predicted returns, as measured in months to payback; we haven’t seen returns this favourable since the beginning of the year and the back end of last year.”
The company continues to optimize media channels, geographic targeting, and marketing mix, which Greenblatt said is driving strong customer acquisition and attractive return on investment (ROI) across both iGaming and online sports. BetMGM plans to continue investing in acquisition where these returns remain attractive.
Market Share and Analyst Reaction
Despite the reduction in marketing spend for online sports betting, BetMGM reported maintaining its US market position. In its Q3 update, the company disclosed holding an 8% market share in sports betting, a 20% market share in gaming, and a 14% overall share in its active markets.
Macquarie analysts supported the commentary, noting that BetMGM is generating efficiencies through better acquisition economics. They cited lower customer acquisition costs, payment processing improvements, and operating leverage as key sources of these efficiencies. The analysts also highlighted the stability of BetMGM’s market share despite the reduced marketing spend on OSB, noting that customer acquisition returns are currently at their most attractive levels in several quarters.
As US gambling markets mature, BetMGM is placing greater emphasis on player retention alongside its acquisition strategies. The company’s focus on specific high-performing jurisdictions like Alberta and Nevada reflects a broader industry trend toward targeted, high-yield investments in regulated multi-product environments.
Why It Matters
This strategic shift indicates that BetMGM is prioritizing profitability over raw market expansion in lower-yield sportsbook segments. Players in multi-product states like Nevada and Alberta may experience different marketing dynamics or product emphasis as the operator focuses on iGaming and high-stakes sports betting. The reported drop in acquisition costs suggests a more competitive landscape for customer retention, potentially influencing the value and frequency of promotions offered to existing users in these key jurisdictions.
David Farbacu is a seasoned writer with a passion for games, gaming, casinos, and Xbox. With a wealth of experience in the industry, David brings insightful reviews, comprehensive guides, and engaging articles that cater to both casual gamers and hardcore enthusiasts. His expertise spans across various gaming platforms and genres, making him a go-to source for the latest trends and developments in the gaming world.
