BetMGM to take a “watch and see” approach to event contracts, says CEO

BetMGM CEO Adam Greenblatt has said the JV is deploying a “watch and see” approach to the growing event contracts space as he called on states to avoid hiking taxes on sports betting firms.

Speaking on an analyst call following BetMGM’s full-year 2024 trading update, Greenblatt opined on the two increasingly pertinent topics after detailing how the operator’s 2024 growth came about.

On the events contract front, and less than 24 hours since Robinhood stepped into the market after tapping Kalshi to bring Super Bowl prediction markets to its app, Greenblatt was coy on the matter. Changed to avoid double ‘after’

The sports event contracts sector kicked into gear with Crypto.com prior to Christmas, before Kalshi and Robinhood entered the fray to offer markets on professional sports.

The Commodity Futures Trading Commission (CFTC) has asked Crypto.com and Kalshi to justify launching these contracts, although both sites remain live with the product at the time of writing.

The move into sports came after a hugely successful US presidential election for Kalshi and Robinhood, as well as non-US licensed Polymarket, with millions of dollars traded across the site.

Greenblatt said: “It’s certainly enjoying lots of headlines in recent days and weeks. One of the key underpinnings [in financial markets] is the constituency and fungibility of the market in order for there to be an ongoing trading environment.

“That isn’t really the case with sports betting. Our markets are live for a handful of days at most. In order for the financial markets-type approach to sports betting to thrive, that needs to be overcome. And, frankly, nowhere else in the world has that been overcome.”

The BetMGM CEO added that in Ontario, the operator was able to offer political betting, which is commonplace in Europe but not available for sportsbooks to offer in the US.

He went on to note that BetMGM’s JV parent Entain is one of the “leaders in election betting” and that the firm would have the “skills and capabilities” to expand into the space.

Greenblatt added: “For us, it’s a watch and see. We certainly have the skills to offer an equivalent and frankly more dynamic product.

“To the extent that it represents an opportunity, we will certainly participate. But the underpinning observation would be there needs to be a level playing field. Something that is allowed under a different set of rules should be allowed for us.

“We do see this as a potential opportunity, it’s very popular elsewhere in the world.”

On the tax hikes debate, Greenblatt aligned himself with Rush Street Interactive CEO Richard Schwartz as he said legalising igaming would be a far more sensible approach for states.

Already this year, a bill in Massachusetts would raise the online sports betting tax from 20% to 51% if passed, while Maryland Governor Wes Moore has proposed hiking the tax from 15% to 30% as part of his 2026 budget.

This week, Ohio Governor Mike DeWine said he wanted to raise the rate from 20% to 40% in the Buckeye State, having doubled the levy from 10% to 20% in 2023.

Greenblatt said: “We always have our eyes on the tax bills. We have a shared interest in ensuring that we are taxed fairly and in a way that allows our regulated industry to flourish instead of the illegal markets. If we step back, what are our objectives?

“Objectives from a state perspective should be, in my mind, to generate tax revenues, facilitate an entertainment product and protect the vulnerable. That includes ensuring that all play is legal, onshore play. The risk with some of these tax bills is that last objective becomes a challenge.

“We are working very hard to educate lawmakers on the potential risks of punitive tax measures. We are also seeking to educate on a better alternative. If the objective is to raise tax dollars, then by far and away the best option is to regulate igaming.

“Some states’ leading lawmakers are more receptive. The topic can be polarising. You have lawmakers who have entrenched positions that can be more challenging [but] that doesn’t mean we give up.”

The post BetMGM to take a “watch and see” approach to event contracts, says CEO first appeared on EGR Intel.

 Adam Greenblatt says Entain’s expertise would allow it to step into political markets in the US, while the operator joins chorus of calls asking states to renege on online sports betting tax hikes
The post BetMGM to take a “watch and see” approach to event contracts, says CEO first appeared on EGR Intel.