BetMGM CEO Calls CFTC Casino Moves ‘Cosmetics’, Expects States to Win
Summary
On BetMGM's third-quarter earnings call on Oct. 13, CEO Adam Greenblatt addressed the CFTC's Oct. 9 rule changes, including an interim final rule codifying that casino-style gambling products fall outside the definition of a swap. He said the move merely "stays" the risk rather than eliminating it, calling the actions "cosmetics in pursuit of survival," and predicted casino-like products will eventually reemerge in another form, since the rule "can be undone and changed in the future." The CFTC also proposed defining sports and event contracts as swaps under its "exclusive jurisdiction." Greenblatt expects the Supreme Court to settle the legal uncertainty, noting most cases have favored states, attorneys general, and tribes, and predicting a ruling in the court's 2026-27 term, though the justices have not yet agreed to hear New Jersey's case against Kalshi. BetMGM reported Q3 net revenue of $710 million (up 7%) and adjusted EBITDA of $86 million (up 112%), with monthly active players down 3%; Greenblatt said the company is shifting investment from lower-return OSB-only markets into iGaming, which contributed $483 million. The results come as prediction-market sports trading surged about 72% to $68.2 billion in the 30 days to Sept. 29, while two federal appeals courts have sided with states since August.
(Source:Bitcoin News)