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)
