00:00Give me a sense here. I mean, do you have an early read on kind of what the handles and
00:03sign-ups look like so far in this first week of the NFL?
00:08Well, fortunately, as expected, the season has started enthusiastically.
00:13From a results perspective, unfortunately, for the bookmakers, Sunday started very fan.
00:20The fans left happy. I was left shouting last night for the Giants, who saved the day in a day
00:27where 10 of 13 favorites won.
00:29So, really good day for the fans generally, and we're very encouraged by both reactivation volume and first-time depositor
00:37interest.
00:38I had to break it to you, Adam, but the Giants will probably let you down at some point later
00:41this season.
00:42All jokes aside, give me a sense, though, when we talk about how important, obviously, the NFL season is to
00:49BetMGM,
00:50but obviously with some of the other sports underway now from the college sports, but also heading into the NBA
00:56season here,
00:57are you expecting overall a better year for 2026 in its totality than what you saw in 2025?
01:04Well, the American Gaming Association has estimated that in NFL only,
01:10legally wagered action will be about the same as last year at around $29.5 billion.
01:18But we also need to recognize that that excludes all of the volume that's being taken by unregulated, illegal,
01:25and also sportsbooks and also prediction market operators.
01:28Adam, you're roughly at 20% share in iGaming and around only 8% when it comes to online sports
01:34betting.
01:34What explains that gap?
01:37Well, our heritage is in gaming.
01:40MGM Resorts is known worldwide for its leading entertainment or gaming-centric entertainment offering.
01:51And so as 50% owned by MGM Resorts, we carry that heritage proudly.
01:57We are very much a gaming-first offering, and so our market share reflects that,
02:04reflects the degree of investment we've made and, of course, that brand impact.
02:10We also have a very sophisticated and successful content strategy in gaming
02:15where we have the deepest range of games,
02:19but also we have only at BetMGM Games the big blockbuster at the moment,
02:26which our players are loving, is called Game of Thrones.
02:29It's a title which requires no explanation.
02:32Its success on the big screen has very much translated into gamer interest online.
02:39And your rivals, FanDuel and DraftKings, they're both leaning into profitability.
02:43I think they're also pulling back when it comes to promotional spend.
02:47And are you in the position to do the same, or are you still chasing profitability?
02:51It's interesting.
02:52We actually, our strategy which we set out, our strategic refinement,
02:57which we set out earlier in the year,
03:01had us really focusing on areas where we can make most impact.
03:06We are seeking to allocate our investment dollars to where we see the highest payback,
03:14where we are most strategically focused,
03:16which is iGaming first and then to higher value,
03:20focus on higher value players in the world of sports.
03:23Well, I am curious though, Adam, I mean, just going back to the prediction market issue,
03:27has there been no discussion amongst you and your colleagues and the board
03:32about maybe starting a prediction product?
03:36So, this is a really important topic.
03:39And it's a significant topic in our industry.
03:42And our position is very clear.
03:44If consumers are wagering on the outcome of a sports event, that's sports betting.
03:49And so, BetMGM is focused on legal, regulated gaming.
03:53And we operate under established regulatory frameworks designed,
03:57and these are the important parts,
03:59to protect consumers, to maintain integrity in sports,
04:03and to promote responsible gambling.
04:06These are features which don't exist,
04:08and certainly not to the same degree,
04:10in prediction markets as they do in online sports betting.
04:14And we share the concerns raised by regulators,
04:17by attorneys general, and tribal gaming stakeholders
04:20regarding these prediction markets.
04:22And so, we hope that they're going to be resolved in the Supreme Court, in due courts.
04:27I understand why you would say that,
04:30and I understand the passion.
04:31I can hear it in your voice behind it.
04:33But you're still the CEO of a company that still has investors it has to answer to.
04:37And my question is that if the puck is going in the direction of prediction markets,
04:41whether fairly or unfairly,
04:43do you run the risk of being left behind
04:45if some of these lawsuits and other regulatory issues
04:49don't fall your way under what you just described?
04:54So, the first point is the puck.
04:57We believe the puck is going in our direction.
05:00All of the recent state and appeals court rulings
05:04have been in favor of the industry, the sports betting industry.
05:08And we hope, and the more recent rulings have been very deeply reasoned.
05:14So, now there is an ever-growing and expanding body of rationale
05:20for why the position that we and the stakeholders I mentioned before
05:25are actually on the right side of the pitch,
05:28on the right side of the issue on this one.
05:33Having said that, as a pragmatic allocator of capital
05:37in pursuit of value for our shareholders,
05:39to the extent that the environment changes,
05:42the regulatory landscape changes,
05:44will certainly assess our options at that point.
05:47How do you explain that to your stakeholders, though,
05:50at a mature remains point?
05:51I'm sure they're kind of pining to hear more from you
05:53because almost every week you hear
05:56Polymarket and College, you just keep on raising money.
05:59They do.
06:00Unfortunately, we have...
06:02I have two shareholders in European,
06:05Entain, and U.S.-based MGM resorts
06:08who are very close to these issues.
06:10We meet regularly.
06:11We discuss them fully and openly.
06:13And so we're very much aligned in our position at this point.
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