MGM Resorts' LeoVegas-led international online business moved close to break-even in the third quarter, with Spain, the Netherlands and the UK driving gains. But revenue growth fell sharply from the previous quarter, at a time when UK and European operators face higher taxes.
MGM Digital posted segment revenue of $184m in the third quarter, up from $174m a year earlier. Its segment adjusted EBITDAR loss narrowed to $4m, from $23m a year earlier. That improvement came in a quarter when group adjusted EBITDA dropped to $403m from $506m.
MGM Digital combines LeoVegas with other consolidated interactive gaming subsidiaries. It excludes the BetMGM North America joint venture. LeoVegas results have been included in MGM’s accounts since the acquisition was completed on 7 September 2022.
Online growth slowed sharply after a strong second quarter
Over nine months, segment revenue is up 21%. The second quarter’s strong rise was recorded with the higher UK online casino tax already in force. The UK duty increase is part of a package the government says will raise more than £1bn a year.
The BetMGM brand lifted MGM Digital’s business-to-consumer revenue by 8%, with Spain, the Netherlands and the UK leading the gains, management told analysts, according to a call transcript published by The Motley Fool. In August MGM began running online sports betting in the UK on its own platform. That platform now generates more than 80% of the company’s online sports revenue there.
Weaker Las Vegas pricing weighed on group earnings
Most of the group’s revenue decline came from an 8% fall at Regional Operations and a 2% fall at the Las Vegas Strip resorts. Strip EBITDAR fell 12% to $531m. MGM’s average daily room rate in Las Vegas fell 8% to $218. Revenue per available room fell 8% to $193, while occupancy was unchanged at 89%.
Macau offered a contrast. MGM China posted record revenue of $1.1bn, a 5% rise, and a record 17.1% market share. Its segment adjusted EBITDAR still fell 7% to $264m, from $284m. Its intercompany branding licence fee expense rose by $22m year on year.
The net loss attributable to MGM narrowed to $17.1m, from $285.3m a year earlier. Adjusted earnings per share still missed expectations, a sign of pressure on large land-based casino operators.
In North America, BetMGM reported third-quarter net revenue of $710m, up 7% on $667m. The joint venture with Entain generated $34m in payments to MGM in the quarter. BetMGM said it expects to finish 2026 near the bottom of both guidance ranges: $2.9bn to $3.1bn for net revenue and $300m to $350m for adjusted EBITDA.
For the UK business, the next tax change is already set. A new 25% remote betting rate within General Betting Duty takes effect from April 2027.
Source material
- BetMGM Q3 2026 Business Update (BetMGM (Nasdaq))
- MGM Resorts (MGM) Q3 2026 Earnings Call Transcript (The Motley Fool)
- MGM Resorts International Reports Third Quarter 2026 Financial and Operating Results (MGM Resorts International (SEC))
- General Betting Duty, Pool Betting Duty and Remote Gaming Duty (HM Revenue & Customs)
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