MGM Resorts cites positive overarching achievements and strategic moves undertaken in Q3 2025, to support its long-term growth prospects.
Q3 accounts saw MGM Resorts reveal a statutory net loss of $285m, including the booking of $93m in non-cash impairments related to its Empire City Casino in Yonkers, (NY).
Period trading saw MGM Resorts withdraw Empire City’s bid to win one of three concessions to operate a full-scale casino in the district of New York (New York City, Westchester County, and Long Island). Exiting the competition, MGM cited a shift in strategic priorities for New York and a decision not to secure an estimated $500m in funding required to compete in the tender.
As such, MGM Resorts has lowered the value of Empire City, an asset acquired in 2019 for $850m as Q3 accounts booked $250m in good-will impairments on the NY asset.
On a year-to-date (YTD) basis, MGM Resorts tracks total revenues of $12.9bn, roughly flat year-over-year. However, the NYSE firm moves to net income loss of $87m, a sharp reversal from the $589m net income recorded during the comparative period in 2024.
China headlines
Impairments aside, Q3 trading saw group-wide revenues stand at $4.25bn, a 2% increase year-over-year, driven primarily by the strong performance of MGM China.
The Asia-facing business delivered a revenue contribution of $1.1bn and segment-adjusted EBITDAR of $284m, up 20% year-on-year. The growth was fueled by continued recovery in Macau’s mass-market segment and led to MGM China reaching a record market share of 15.5% during the quarter.
Asia continues to be a key growth area for MGM Resorts, with momentum building around the group’s international expansion plans, particularly in Japan.
During the quarter, MGM entered into a ¥-denominated, USD-equivalent $300m credit facility at an interest rate of approximately 2.5% to support the ongoing development of its integrated resort project in Osaka, signaling a deliberate pivot toward Asia as a core strategic region.
MGM Resorts CEO and President Bill Hornbuckle highlighted the resilience and diversification of the group’s portfolio. “MGM Resorts delivered another quarter of consolidated net revenue growth as we benefit from our operational scale and diversity, highlighted by record third quarter results from MGM China.”
Soft Vegas impacts
Despite strength in Asia, domestic operations showed signs of weakness, particularly in Las Vegas.
The company’s Strip Resorts reported a 7% decline in revenue to $2.0bn and an 18% drop in Segment Adjusted EBITDAR to $601m. Performance was affected by the room remodel at MGM Grand Las Vegas, a decline in revenue per available room (RevPAR), lower table games win percentage, and reduced food and beverage sales.
Increased general liability insurance costs and a reduction in business interruption proceeds further weighed on profitability. Nevertheless, management pointed to early signs of recovery in group and convention business heading into the final quarter of the year.
BetMGM delivers against Digital losses
MGM Digital, which includes international online gaming operations such as LeoVegas, continued to grow top-line revenue, reporting a 23% year-over-year increase to $174m.
However, the segment remains loss-making, with a segment-adjusted EBITDAR loss of $23m for the quarter. Investments in platform expansion, marketing, and operational infrastructure contributed to ongoing margin pressure.
In contrast, BetMGM—the group’s 50/50 North American digital venture with Entain—delivered on key performance milestones. MGM’s share of operating income from BetMGM increased to $23m in Q3, up significantly from $3m in the same period last year.
BetMGM raised its full-year guidance for the second consecutive quarter and announced it would initiate cash distributions to MGM Resorts beginning in Q4 2025. The initial distribution is expected to be at least $100m, marking a strategic turning point as the business transitions from a growth phase to becoming EBITDA-positive and cash-generating.
“The BetMGM venture reported accelerated growth, increasing full year guidance for the second consecutive quarter and announcing cash distributions to MGM Resorts beginning in Q4 2025. The initial distribution is expected to be at least $100m, demonstrating significant progress on growth, profitability, and free cash flow.”
Cautious end to 2025 trading
Balancing ‘domestic adjustments’ with Asian growth, ’MGM Resorts expects to close 2025 with stable domestic performance, strong international results, and a milestone cash return from BetMGM. Yet leadership continues to monitor macroeconomic changes impacting 2025 overall performance
Group CFO Jonathan Halkyard states that leadership will prioritise cost disciplines and capital deployment. “We are seeing encouraging signs of stability in Las Vegas with the return of group and convention business and the completion of the MGM Grand room remodel,.”
Halkyard noted. “MGM’s strategic focus on premium, market-leading integrated resort operations drove the decision to sell the operations of MGM Northfield Park. The price reflects a solid multiple, which again demonstrates the value gap in MGM Resorts’ equity price.”
