MGM Sees Record Revenue Despite Vegas Softness

Las Vegas-based MGM, a half-owner of BetMGM online casino, was out with earnings this week, and despite some headwinds on the Las Vegas Strip, the company saw record revenue. Overall, the company with holdings worldwide reported $4.4 billion in net revenue, up 2% from 2024, and  EBITDA of $648 million, up from $638 million in Q2 last year.

The dip along the Las Vegas Strip, which reported an 11% visitation drop in June, wasn't as pronounced in the company's earnings, though they did slide 4% to 2.1 billion vs. 2.2 billion in last year's quarter. EBITDA slid a more pronounced 9% to $710 million, mainly due to weaker table game hold at just one Strip property, the MGM Grand Las Vegas.

Often when Vegas suffers, regional properties shine, as people still gamble just a bit closer to home, and this year's spring and summer slump in Sin City has been no exception, with MGM reporting regional business up 4% to $965 million on increased table game drop and slot handle across its regional portfolio.

While Las Vegas remains mired in mediocrity, Macau has roared back to life as the place to see and be seen. Like many operators, MGM had a strong Q2, with revenue up 9% and EBITDA rising 3% to $301 million.

MGM Digital, which includes LeoVegas Group, has a strong UK and European presence, especially in the Nordic countries, though it is also active in Spain and Italy. Recent ventures in Brazil and Latin America, as well as Ontario, in North America, have also proven quite successful.

While net revenues only reached $164 million, that was up 14% from the prior Q2, and it is expected to continue to accelerate for at least the next few quarters as some of these newer markets mature.

Looking forward, the company is a top contender in the race for one of three New York City gaming licenses expected to be awarded before the end of the year. The company is on track to finish its Dubai hotel project in late 2028, though it currently lacks a gaming license. The company has made a massive investment in a casino in Osaka, Japan, with a current price tag of $9 billion, which is scheduled for a 2030 opening. However, to be clear, MGM is currently only a 42% stakeholder. 

BetMGM, the company's half-owned subsidiary with Entain, was also out with earnings the following day. This company primarily focuses on the North American casino market, which is currently only comprised of 7 states with legal online casino operations, but another 35 with online sports betting, as well as Alberta and Ontario, Canada. 

BetMGM has limited its US online casino operations to New Jersey, Michigan, Pennsylvania, and West Virginia, while it operates sportsbooks in 22 other states. In Canada, they currently only have a license in Ontario, though as Alberta and potentially Manitoba open up, they are expected to enter there as well. 

The company pulled in $692 million on gross wagers of roughly $3.4 billion in the quarter. $449 million came from just the four online casino licenses, up 29% from Q2 2024, and sports bets made up the remaining $228 million, a whopping increase of 56%. Total revenue increased 36%. Amazingly, they did all that with only a 7% increase in active monthly users.

EBITDA still lagged, though, with only $86 million booked, which is a less-than-impressive margin, though much better than the $8 million they made last year. The company pointed to investment to acquire and retain a broad player pool. 

Looking forward, the company expects its investment in a new flagship app and the ability to use the same wallet at properties nationwide to pay large dividends in the next couple of quarters, and issued guidance for the entire year of about $2.7 billion in net and at least $150 million in EBITDA revenue. 

Despite softness in Las Vegas, MGM overall and its half-owned subsidiary BetMGM continue to see record-setting revenue, thanks to a well-diversified portfolio of gaming companies. A resurgent Macau and strong regional property growth kept the MGM Lion roaring, at least through this quarter.

With a hoped-for New York license and its staggering investments in Dubai and Osaka, the company continues to sow the seeds for future global growth, and at least for now, they are posting the numbers to back that bet up.