MGM Digital cuts loss to $4 million as revenue growth slows

MGM Resorts' international online division, led by LeoVegas, approached breakeven in the third quarter. Spain, the Netherlands and the United Kingdom contributed profits. However, revenue growth slowed sharply compared with the previous quarter. During this period, operators in the UK and Europe faced higher taxes.

MGM Digital's segment revenue was $184 million in the third quarter, compared with $174 million a year earlier. The segment's adjusted EBITDAR loss narrowed from $23 million to $4 million. The group's adjusted EBITDA fell from $506 million to $403 million.

Most of the revenue decline came from an 8% drop in regional operations and a 2% loss at the Las Vegas Strip hotels. Strip EBITDAR fell 12% to $531 million. Average room rates in Las Vegas dropped 8%. In Macau, MGM China stood out with record revenue of $1.1 billion and a 17.1% market share.

The net loss attributable to MGM narrowed from $285.3 million to $17.1 million. Adjusted earnings per share came in below expectations. In North America, BetMGM lifted its third-quarter net revenue 7% to $710 million. The company expects to finish 2026 near the low end of its guidance ranges.

A new tax rule has also been set in the UK. From April 2027, a 25% remote betting rate will apply under the General Betting Duty.