MGMリゾーツ・インターナショナル 2026年第3四半期決算説明会：BetMGMの利益成長、マカオでの記録的業績、ラスベガスADRへの圧力

重要なポイント

• ラスベガスのカジノ売上高は、第3四半期として過去最高のスロット収入に支えられ、前年同期比8%増加しました。しかし、稼働率がほぼ横ばいにとどまる中、客室単価の低下がセグメント調整後EBITDARの押し下げ要因となりました。
• MGMチャイナは、前年同期比5%増となる四半期ベースで過去最高の売上高を記録しました。第3四半期の市場シェアは過去最高の17.1%に達し、9月には19.2%を記録しました。
• BetMGM北米事業の事業純売上高は前年同期比7%増加し、調整後EBITDAは112%増加しました。MGMリゾーツに対する分配金およびブランディングライセンス料は合計3,400万ドルに達しました。
• MGMデジタルは、純売上高が6%増（約1,000万ドル増）となり、EBITDARが1,900万ドル改善したことで、四半期赤字を400万ドルに縮小しました。
• MGM大阪の工事進捗率は約11%となりました。MGMリゾーツは約1,140億円を投資しており、2030年の開業に向けて予定通りのスケジュールおよび予算目標を維持しています。
• MGMは、People Inc.を巡る状況のため、第3四半期に自社株買いを実施しませんでした。同協議は既に終了しており、自社株買いプログラムの授権枠は14億ドル残っています。

主要財務データ

事業および業績の動向

ラスベガス

カジノ需要は特にハイエンド層で堅調を維持したものの、旅行コストの高止まりがレジャー顧客および個人旅行需要の重荷となりました。経営陣によると、第3四半期のラスベガス行き航空運賃は前年夏と比べて約45%高くなったほか、過去最高水準のジェット燃料価格や高ガソリン価格も顧客の負担となりました。

四半期を通じて平均客室単価（ADR）の低下が顕著となりました。7月のADRはほぼ横ばいから1桁台前半の減少、8月は1桁台半ばの減少、9月は1桁台後半の減少となりました。10月はコンベンションやNFLの3試合、テーブルゲームの好調に支えられ、7月に近い水準で推移しました。11月のフォーミュラ1（F1）関連の予約状況も好調と説明されています。

地方主要拠点

地方主要施設は四半期として過去最高のスロット収入と安定した既存店売上高を記録しました。調整後EBITDARは、2施設での不振なホールド率（控除率）と、前年同期の事業中断保険金計上による比較上の不利が響きました。ホールド率の影響を受けた2施設を除くと、残りの地方事業はEBITDAR成長を達成したと経営陣は言及しています。

MGMが地方ポートフォリオ全体で絞り込んだ設備投資を継続する中、ボルガタ（Borgata）のメインタワーの改修が進められています。

MGMチャイナ

MGMチャイナの過去最高の売上高および市場シェアは、プレミアム・マス向けゲームの持続的な強さと、最近リニューアルされたプレミアム空間を反映したものです。改装されたコタイ・シュプリーム・クラブ（Cotai Supreme Club）は遊興時間の延長と単価の向上をもたらし、7月にオープンしたハイリミット・スロットエリアはより多くの会員プレイヤーを引き付け、スロットの稼働量を増加させました。

10月の国慶節（ゴールデンウィーク）におけるMGMチャイナの2施設合計の来訪者数は、前年同期比10%増加しました。競争環境が激化しているにもかかわらず、経営陣は10月を通じて第4四半期のトレンドが堅調に推移していると述べています。

デジタルゲーミング

BetMGMの収益化が加速し、売上高が7%増加したことで調整後EBITDAは112%急増しました。経営陣はこの好業績について、iゲーミング、プレミアム顧客の獲得、抑制されたプロモーション費用、そしてBetMGMが戦略的優位性を持つ市場への集中によるものとしています。

MGMデジタルのB2C売上高はスペイン、オランダ、英国が牽引し8%増加しました。自社プラットフォームは、8月のスポーツベッティング開始後、英国のオンラインスポーツ売上高の80%以上を生み出しました。

ブラジルでは、9月の暫定措置によって市場が混乱したことを受け、MGMは固定費を削減しました。同社とグルーポ・グローボ（Grupo Globo）は規制および法的な動向を注視しており、想定される複数のシナリオに備えています。

MGM大阪および資本構造

MGM大阪の基礎杭工事の約70%が完了し、プロジェクト全体では約11%が完了しました。MGMリゾーツは資金拠出の義務を果たすため、2027年と2028年にそれぞれ1,500億〜1,600億円（約10億ドル）を投入する見込みです。

MGMはこれらの拠出金を主に手元資金とフリーキャッシュフローで充当する予定ですが、追加の円建て調達を活用する可能性もあります。同社が今後12か月以内に満期を迎える米国内債務は6億7,500万ドルのシニア社債1件のみです。リボルビング信用供与枠は未実行のまま維持されています。

経営陣の見通し（ガイダンス）

• MGM大阪は2030年の開業に向けて予定通りのスケジュールと予算を維持しています。経営陣は、残りの出資義務が2027年と2028年に予定されている拠出によって完了すると見込んでいます。
• BetMGMは前四半期に発表した通期ガイダンスを維持しました。
• MGMチャイナは引き続き、EBITDARマージンの目標値を20%台半ばから20%台後半の範囲に設定しています。第3四半期のマージンは約26.9%でした。
• 経営陣は、ブラジルでの結果に関わらず、MGMデジタルが黒字化に向けた進展を続けると見込んでいます。
• ラスベガスについて、経営陣は第4四半期の出だしが夏季より良好であるとしつつも、直前予約傾向（短いブッキング・ウィンドウ）が引き続き見通しを制限していると強調しました。また、12月はコンベンション事業の定期的な開催サイクルの移行期に直面します。

リスクと注視すべきポイント

• 航空運賃、ジェット燃料価格、ガソリンコストの高止まりが、ラスベガスのレジャー需要およびADR（平均客室単価）を圧迫しています。
• 予約サイクルが短いため、第4四半期残りの客室需要に対する見通しが立ちにくくなっています。
• ブラジルの規制および法的見通しは不透明なままであり、MGMは同市場に対する長期的なアプローチを決定していません。
• マカオ市場は引き続き競争が激しく、事業者はプロモーション費用や顧客への再投資水準を注視しています。
• MGMの予定されている大阪への拠出は2027年と2028年の両年で年間約10億ドルを必要とし、自社株買いのペースを抑制する可能性があります。

アナリストQ&Aの要点

• ラスベガスの需要：経営陣によると、10月は前月比で改善が見られ、ラグジュアリー需要が拡大するという以前のパターンに戻りつつあるとのことです。ただし、持続的な回復は燃料価格および航空料金の正常化に一部依存すると注意を促しました。
• ハイエンド顧客：MGMは、第3四半期に最高層のグローバル顧客が不在だったという見方を否定し、ラスベガスとマカオの双方でハイエンドの利用実績が引き続き好調であったと述べました。
• コスト管理：販売客室数が5万4,000室増加したにもかかわらず、ラスベガスの人員配置は前年同期比で実質横ばいでした。経営陣はカスタマーサービスを低下させることなく、変動人件費と業務効率化に引き続き注力しています。
• 資本配分：MGMは、大阪プロジェクトと自社株買いを二大資本優先事項と位置付けました。経営陣は、より積極的に自社株買いを進めることを選択した場合、バランスシートは緩やかなレバレッジ上昇に対応可能であると述べました。
• 国際訪客数：メキシコが引き続きMGMにとって最大のインバウンド市場であり、カナダからの需要は大幅な落ち込みから回復し始めました。経営陣は、国際訪客数は改善傾向にあるものの、まだ完全には正常化していないと説明しました。
• People Inc.：MGMは、筆頭株主との買収関連の協議が終了したと述べました。変更後の議決権協定により、People Inc.は保有比率が29.9%に達した後の追加株式取得が禁止され、経営権の変更を伴う取引においては議決権を行使する際に取締役会の方針に一致させることが義務付けられます。

決算説明会トランスクリプト全編

決算説明会の完全なトランスクリプト

経営陣による説明

Operator

Good afternoon, and welcome to the MGM Resource International Third Quarter 2026 Earnings Conference Call. Joining the call from the company today are Bill Hornbuckle, Chief Executive Officer and President; Ayesha Molino, Chief Operating Officer; Jonathan Halkyard, Chief Financial Officer; Gary Fritz, Chief Commercial Officer and President of MGM Digital, Kenneth Feng, Chief Executive Officer of MGM China Holdings and Howard Wang, Vice President, Investor Relations.

[Operator Instructions] Please note, this conference is being recorded.

Now I would like to turn the call over to Howard Wang.

Howard Wang

Thank you, Marco. Welcome to the MGM Resorts International Third Quarter 2026 Earnings Call. This call is being broadcast live on the Internet at investors.mgmresorts.com, and we have also furnished our press release on Form 8-K to the SEC.

On this call, we will make forward-looking statements under the safe harbor provisions of the federal securities laws. Actual results may differ materially from those contemplated in these statements. Additional information concerning factors that could cause actual results to differ from these forward-looking statements is contained in today's press release and in our periodic filings with the SEC. Except as required by law, we undertake no obligation to update these statements as a result of new information or otherwise.

During the call, we will also discuss non-GAAP financial measures when talking about our performance. You can find the reconciliation to GAAP financial measures in our press release and investor presentation, which are available on our website.

Finally, this presentation is being recorded. I will now turn it over to Bill Hornbuckle.

William Hornbuckle

Thank you, Howard. Given the active news cycle surrounding MGM Resorts, I want to start today's call by clarifying the information around People Inc. As you're aware, MGM received an offer in June from our largest shareholder, People Inc. People and the special committee came to terms on price. But in the end, people was unable to assemble a syndicate that met their objective and they withdrew their offer. Earlier today, we announced an amendment to the existing voting agreement with People, which restricts them from purchasing additional shares once their ownership reaches 29.9% and confirms that they will vote with the board in connection with the change of control transaction. We believe this amended agreement aligns our largest shareholder, not only with our long-term strategic plan, but also with our ongoing commitment to maximizing value for all of our shareholders.

The discussion between MGM and People ends there. Management continues to be focused on the business as clear and consistent. And today, you'll hear that MGM Resorts has a focused operational approach, solid fundamentals and a compelling pipeline. We operate an unrivaled portfolio of offerings in Las Vegas and sports and entertainment capital of the world with globally recognized brands and experienced leadership team and well-capitalized resorts.

Not to mention, we have a solid balance sheet and remain the only integrated reserve operator with a global brick-and-mortar and digital footprint and a meaningful development pipeline highlighted by MGM Osaka, which we believe is the greatest integrated resort opportunity anywhere on the globe.

Our multiyear momentum is best captured when you take a step back and look at the trailing 12 months Las Vegas Strip EBITDAR, which is nearly 70% higher than we reported for the full year of 2019. We've come a long, long way. Ultimately, our success is driven by our frontline execution and the teams throughout our diverse business segments drove steady performance of consolidated revenues in the third quarter, a notable achievement considering the macro environment. This was evidenced by our best third quarter Gold Plus and all guest NPS scores.

During the third quarter, our Las Vegas operations exhibited year-over-year growth in casino revenues of 8% driven by record 3Q slot win. High-end play continues to lead the way, driven by a special programming like our second annual $5 million slot tournament. Our group and convention channel also continues to be a bright spot. We actualized over 500,000 room nights in the third quarter, exceeding our internal expectations for convention revenue and remain on pace for this channel to represent 20% of total room night mix for the full year.

The macro headwinds we faced during the third quarter affected our leisure and transient customers across the board, and it was especially notable at the end of September when amplified by short booking windows and a slower event calendar. Jet fuel prices hit a record high in September. And while domestic airfares have risen an average of 12% since March 26, we saw airline pricing to Las Vegas up about 45% in 3Q versus last summer. Gas prices also remain high, impacting customer wallets, and consequently, our 3Q performance achieved flat occupancy but at lower room rates.

As we look ahead, October is starting off the fourth quarter on the right foot, with solid group and convention activity and the busy citywide event calendar highlighted by 3 NFL games and strong table games play. In the final 2 months of the year, not only are we hosting our very owned players Edge Men's Championship but the city will play host to the NFR Rodeo, the Las Vegas Ball and another exciting weekend of F1. 2027 gets off to a fast start with NC2A College Football play up National Championships and the NC 2A Women's Basketball Suite 16, all during the first quarter. Our regional operations continued their steady same-store performance, driven by the best third quarter casino revenues and an all-time best quarterly slot win.

The main tower renovations at Borgata are underway, and we continue making targeted capital investments, we will see opportunities for meaningful returns across our regional portfolio. At MGM China, we achieved record quarterly revenues. Our market share in September was 19.2% and ended the quarter with a record 3Q market share of 17.1%. These trends have continued into the fourth quarter with strong October performance thus far. While the market remains competitive, we are focused on our operations and the execution is paying off. For example, our newly renovated Cotai Supreme Club has resulted in longer playing times and higher playing levels with our high-end customers and our Cotai high limit slot area, which opened in July, is attracting more rated players and driving higher slot volumes.

At our BetMGM North America venture, Adam and Gary Deutsche reported strong third quarter results a few weeks ago. Third quarter net revenue from operations increased by 7% and while adjusted EBITDA increased by 112%, implying a greater than 100% flow-through from the top line. We continue to prioritize resources towards our iGaming business where we see the most compelling growth opportunities. Our broader focus on premium players, prudent promotional spending and markets where we have a strategic advantage are resulting in greater profitability and cash flows to MGM in the form of both branding licenses and distributions.

It is worth highlighting that during the quarter, the Ninth Circuit unanimously ruled the prediction market sports event contracts are not finally regulated swaps, they are sports bets. The judge's opinion that it disingenuous to deny that the contracts are sports bets under reasonable person's understanding and then everyone knows a sports bet when they see it. We couldn't agree more and are hopeful that the Supreme Court review the case sooner rather than later.

MGM Digital made great strides during the quarter as the BetMGM brand continues to drive 8% top line growth in the B2C channels led by gains in Spain, the Netherlands and the U.K. In Brazil, the market is showing, and we continue to monitor the situation with our co-investor, Grupo Globo. MGM's soccer remains on time and on budget for a 2030 opening. Approximately 70% of the foundation files are completed, while concrete and steel fabrication work around ground continues to make progress. On a combined basis, the entire project is roughly 11% complete.

We've included a few new slides in the earnings presentation to help paint a clearer picture of MGM Osaka's magnitude and scope compared to other global resorts as well as data points on the customer base we are attracting and where those customers will be originating. We will continue providing additional details as the progress continues.

MGM remains committed to being the global leader in gaming entertainment and it starts here in Las Vegas. Over the city's storied history, growth has never been linear, but as the city has evolved over time, growth has always materialized. We have witnessed this evolution of Las Vegas into the sports and entertainment capital of the world. And when considering the additional expansion pipelines in digital and international, there is no one better positioned to capitalize than our company.

I will pass it now over to Jonathan to provide additional details on our performance this quarter.

Jonathan Halkyard

Thanks, Bill. In Las Vegas, the decline in third quarter segment adjusted EBITDA was driven primarily by lower room revenues, which offset benefits from stronger casino revenues. We experienced an increase in mix from the leisure customer over the hot summer months, which resulted in pressured rates against similar occupancy that we had last year.

Looking ahead to the fourth quarter, October is shaping up to be a solid month, and November will once again benefit from a robust Formula 1 calendar. In December, some normal group and convention rotation took place as anticipated and our sales teams are stepping up to secure incremental business to make that much.

The regional operations third quarter same-store revenues increased by 1%, driven by all-time record quarterly slot win. Same-store slot drop and win both increased by 4%, though were slightly offset by lower table games win. Recall the regional results in last year's third quarter benefited from approximately $9 million of business interruption proceeds. Thus, when combined with the adjustments related to the sale of Northfield Park, it results in just a 3% decrease in same-store adjusted EBITDAR and that decline can be attributed to hold at 2 properties, excluding those, we drove EBITDAR growth at the other regional operations.

At MGM China, revenue grew 5% year-over-year, while reported EBITDAR was down $20 million, but the brand feed MGM Resorts increased by $22 million compared to last year's third quarter. Margins were consistent when taking this brand fee into account. We had strong visitation during Gold Week in October, up 10% year-over-year at our 2 properties, and the premium mass continues to drive growth and the positive response to our refurbished products and premium spaces are proof that our team holds a deep understanding of the Macau market and our customers' evolving tastes.

Our BetMGM North America venture reported a strong 3Q and maintained their full year guidance that they conveyed last quarter. iGaming drives nearly 70% of our net revenue from operations and remains our primary growth engine coupled with our dominant Nevada presence, these resilient channels generate the vast majority of our total revenue insulating our performance from broader prediction market trends and concerns. Our best-in-class iGaming segment grew 8% in the second quarter and continues to scale. Player values continue to improve, driven by emphasis on acquiring premium customers with high predict returns. We're also focusing on multiproduct states in Nevada and the high flow-through in 3Q is evidence the strategy is working.

During the quarter, BetMGM distributions and branding license fees to MGM Resorts totaled $34 million. MGM Digital increased net revenue by 6% or approximately $10 million during the third quarter and was able to convert that into a $19 million improvement in EBITDAR, narrowing the loss to $4 million this quarter. In August, we launched online sports betting in the U.K. on our proprietary platform, which now drives over 80% of our online sports revenue. And on the iGaming side, we've revamped our casino product and invested in enhanced data models as we continuously improve the user experience.

In Japan, we've spent approximately JPY 114 billion to date and remain on track to deploy approximately JPY 150 billion to JPY 160 billion or about USD 1 billion in each of 2027 and 2028, which will fully complete our funding commitments. The project remains on time and on budget for a 2030 opening. And none of this progress and success throughout our operations happens without our amazing team, and I want to join Bill and sincerely thanking every team member whose dedication and focus position us for this long-term success.

I also want to take some time to highlight our capital structure because it's worth noting that there is minimal near-term refinancing risk related to our balance sheet. We have very manageable upcoming debt maturities and with only 1 tranche of domestic debt, a $675 million issue of senior notes maturing within the next 12 months, and our revolving credit facility is undrawn, and our balance sheet is well equipped to withstand the current rate environment.

And finally, given the current stock price, I can't help myself, and I'm compelled to revisit our valuation. And this is not a theoretical exercise, considering that we have approximately $1.4 billion in remaining authorized capacity under our current share repurchase program. When you calculate the MGM China stake at market value and assign a consensus value to the BetMGM North America venture, which we still view as very conservative given the current trajectory, you end up with roughly $4.1 billion of value, which implies a multiple of less than 3x trailing 12 month domestic OpCo adjusted EBITDA. This assigned zero value to both MGM Digital and MGM Osaka, but I think most would agree that a conservative valuation of MGM Osaka could easily exceed $4.1 billion, thus providing investors the Las Vegas and regional operations, operations which reliably generate greater than $1.5 billion in EBITDA for free.

I'll turn it back to Bill.

William Hornbuckle

Thank you, Jonathan. To reiterate, before I turn this over for questions, we are sharply focused on our business. In Las Vegas, we are encouraged by what we see in October, but even more encouraged by what we see on the horizon. The upcoming marquee sporting events and teams further cement the global consensus that Las Vegas remains irreplaceable. There is simply no other market in the world capable of matching its concentrated hospitality infrastructure an unparalleled ability to execute mega events on a global stage. Las Vegas and of note, MGM Resorts are at the heart of that experienced economy.

Our regional operations are also benefiting from targeted capital investments as they continue generating steady cash flow. MGM China continues to punch above its weight. Our latest quarterly revenue and market share records are just another sign the deep understanding of our customers and having dexterity when executing our strategy continuing to pay off. We see near and medium-term growth opportunities at our BetMGM North America venture is delivering accelerated profitability and the MGM Digital will continue on its path to profitability regardless of the outcome in Brazil. And long-term growth will come from MG and Osaka, which continues to steadily make progress with much more to come.

Our focus remains absolute, executing at the highest operational standard to close the gap between our current market valuation and the true premier value of our enterprise for our shareholders.

With that, let's open this up for questions.

Operator

[Operator Instructions] And our first question today comes from Brandt Montour at Barclays.

質疑応答

Brandt Montour

So I want to start out with Las Vegas. Bill, you gave some comments on October that sounded reassuring. And I was hoping you could maybe pull out leisure from those statements. And just give us a sense if you feel like leisure demand found a bottom in the month of August, September? Or if there's just some favorable seasonality because of better mix moving into a higher convention month like October?

William Hornbuckle

Yes, I'll give some overview and then maybe, Ayesha can double back for me here. It's been fascinating. Obviously, last summer was, I think, a story about the lower end of our market mix this summer, because of pricing, most notably air pricing into this market, it extended beyond just that. We have seen throughout all of it, a great penetration into our casino database, great gaming revenues across the board, convention business in corporate America have held strong the event activity has held strong and the participation of folks wanting to have those experiences all the same. We ran the same ac quarter-over-quarter. So for us, the push was the yield on pricing and getting folks to come, particularly from a leisure and an FIT perspective, who are willing to pay up, if you will, in terms of ADRs, and that was the principal gap between this year and last year in terms of quarters. And in terms of the miss in Vegas, it was mostly all about ADR.

October has shown well Part of it is seasonality. You all know March and October, the 2 months we generally have. Event activity has been strong. We've had 3 NFL games, which we've done well with, as we always do. And so we feel positive about it. looking into the rest of the quarter, well, it's been a last-minute booking cycle, and it continues to be, and so it's a little hard to tell. I think over time, we're going to need relief on fuel, gas and airline pricing as well, which obviously is impacted by the same.

But we see a better looking quarter than I think we came out of the summer with. Ayesha?

Ayesha Molino

Yes. I think, Bill, you said it really well. I mean, as Bill noted, we are seeing a sequential improvement in October and we're pleased by that. I do think that as we start to see the event calendar also improve in the fourth quarter and beyond, we'll continue to see some stabilization of that leisure demand in those rates, particularly on the weekends. So to answer your question, is it the bottom? I mean, obviously, time to tell that the macroeconomic impact and sort of the sudden spikes and a lot of the consumer inflationary, especially around energy prices, it does seem to have disproportionately impacted the latter half of the summer.

Brandt Montour

Great. And then just one more on Vegas from me. One of the themes from last year was a bifurcation, right, with the high end, holding up quite well. And so with this sort of step down in August and September, did you continue to see that bifurcation? Did you see the weakness at the low end sort of bleed into your sort of leisure -- or sorry, your luxury stronghold, how did those fare this time around?

Ayesha Molino

Yes. We did see some ADR impacts across the portfolio toward the back half of the summer. But as Bill noted, we are seeing some stabilization in that, some improvement in that and sort of return to that bifurcation in October. So we're continuing to monitor it very, very closely.

Operator

Our next question today comes from David Katz at pre .

David Katz

I'd love to just get a little more color on how you look at the opportunity set for capital deployment between the buybacks and I think you'd probably find little argument, Jonathan, that the stocks are -- the stock is to inexpensive versus potentially some of the internal investments or even redevelopment opportunities that there may be versus external growth hypothetically in something like digital that could produce some long-term growth. Just walk us across that range, if you would?

Jonathan Halkyard

I'm happy to do that, David. And I'll certainly invite a comment from Bill and Ayesha as well. We've been fortunate and able to buy back 250 million shares over the past 3 or 4 years without, I think, making a single -- having to make a single trade-off with respect to capital -- other capital deployment opportunities before us. Now looking forward, we are coming upon 2 years of investment in our Japan project at $1 billion per year. So we do that we do that enthusiastically just because of the returns we think are associated with that project. So I think going forward, our opportunities to repurchase our shares will be impacted by that somewhat, although we still think there's tremendous value and we do plan to allocate capital to repurchase stock.

On the digital front, with MGM Digital, we have made our moves there. We've talked about the investments that we've made in Brazil. We will see how that plays out and whether that will require any additional investments. We will allocate capital over the next couple of years to improve our room product and take advantage of some growth opportunities here in Las Vegas. But as we look at really the opportunities before us, it's going to be Japan, it's going to be share repurchases, and we think that those are the 2 most important and remunerative ways to use our capital.

David Katz

Noted. And I appreciate that. And as my follow-up. When we get into next year, it's perhaps the first time in a number of years, we have a new competitor entering right in the middle of the strip, right? Just talk about how you prepare yourselves and any strategies you might be deploying to try and -- capitalize or prepare yourself for that?

William Hornbuckle

David, I'll kick it off and turn it over to Ayesha. First and foremost, we welcome it. And if it's next year, great, doesn't look like it from the outside, but we'll see. But any time you've had something with that kind of energy and that kind of commitment and that kind of investment, it is regenerated Las Vegas, the new the story, the narrative, et cetera. And so we remain excited by that. And obviously, we remain excited by what we think the A stadium can do. and hopefully, maybe someday, the NBA. All that said, look, very great competitor. We see them in Atlantic City, so we know them fairly well from that marketplace, and they compete well in many respects. I don't know, Ayesha, if you want to add commentary to that. But in terms of the competitive set, i.e., what we're doing.

Ayesha Molino

Yes, sure, absolutely. Both from, I would say, an operational perspective and from a capital perspective, we're certainly focused on making sure that we're ready to compete. As Bill noted, we do anticipate that as it opens, we're going to see new customers enter the market. We're excited about that and that opportunity because we certainly believe it brings us opportunity as well. And from a capital perspective, we continue to invest in our high-end assets. So we have the rare remodel coming up here at Bellagio. We're getting ready to open a high limit slot NX. The spas is underway. So there's a lot of exciting capital that we are deploying here to make sure that we remain ready to both retain and grow our customers.

William Hornbuckle

And then, David, I think maybe one last thought there. They have given the nature of their business and their location, they have a pretty unique Florida concentrated database, then it will be good to get to Las Vegas. And so I feel firmly that as well.

Operator

And our next question today comes from Robin Farley at UBS.

Robin Farley

Great. I wonder if you could comment, another operator out there talked about how the highest end players globally just kind of didn't show up in Q3 in multiple markets. Can you talk about what you may be observing with that in both Macau and in Vegas, and then I just have a little tiny housekeeping follow-up.

William Hornbuckle

I'll kick this off. I don't necessarily agree with that comment as a matter of fact, to the contrary. Yes. As it relates to Macau of note, I know it's some very high-end play. And here back in Las Vegas, we've taken on some of the biggest customers in our history, actually. And so I think that end of the marketplace as productive as it's ever been for the company.

Robin Farley

Okay. Great. And then just a little housekeeping follow-up. It looks like your guidance for cash taxes came down a lot. Is that just sort of a bookkeeping thing or was it tied to an expectation where you had been accruing something, but the results leads you to expect something different now?

Jonathan Halkyard

Yes. That guidance came down a fair amount for this year. It's really a result of just fine-tuning our CapEx and the tax treatment of that under the on beautiful bill as well as just some more ground refunds that we've been doing. So we're pleased to see that estimate for 2026 come down materially.

Operator

And our next question today comes from Shaun Kelley of Bank of America.

Shaun Kelley

For Jonathan or Bill, whoever wants to take it, just -- in Las Vegas, obviously, the -- we've gotten a couple of questions on just the flow-through of revenues to EBITDA in the quarter. It seems like there's a lot here going on in mix and probably a couple of other things, but wondering if we could get a little bit more color on maybe the other revenue side of the equation, non-gaming, non-lodging, like did we shift some mix to casino block and then that may have moved some things around or something else going on?

And then, Jonathan, more high level, guess account is both my questions. Where are we on the cost side right now in terms of your ability to maybe find some additional offsets and control that versus look, run rate line level inflation, which is pressure for everybody in this world?

William Hornbuckle

Let me kick it off and maybe turn it to Ayesha for second. Go back to Robin's question a minute ago, a lot of that high-end play because we had a massive slot tournament with high-end play within several high-end baccarat customers in with high-end play. And all of those are, while great cash business, they're at a higher margin. And so they drive some of that higher-end margin discussion. And so I think that's part of what you're seeing. And then historically, we have shifted over the last several years, but it magnified itself this summer, where we've gone from 20% casino marketing mix at a little over.

And with that -- and we're excited by that but with that comes marketing programs that are centered on casino customers again, they take before they give.

And so Ayesha, I don't know if you want to...

Ayesha Molino

Yes. From an operational perspective, I mean, yes, Shaun, we remain laser-focused on finding ways to drive efficiency out of the business while maintaining the customer service proposition and ultimately supporting the long-term reputation of the brands. That being said, I will note that our FTEs for the quarter were effectively flat year-over-year with 54,000 additional occupied room nights. And so the teams are very focused on how to manage variable labor given the ADR pressures that we've discussed, and we will continue to stay focused on that.

Operator

And our next question today comes from Dan Politzer at JPMorgan.

Daniel Politzer

Bill, Ayesha, whoever wants to take this. Just another 1 Las Vegas. Gaming trends have been resilient for you, but I think that for the Strip RevPAR for you guys has declined, I think, 8 consecutive quarters. How should we reconcile the underlying health and maybe the path to recovery for Las Vegas, just given that against the broader U.S. travel backdrop, which is very strong right now. And then maybe asked another way, what is it that MGM and maybe the broader strip operators can do to better attract more customers or even a higher-quality customer?

William Hornbuckle

Yes, fair question and good question. I think if you look at, at least summer over summer, air prices are up literally 45%. And so this market between the loss of Spirit pricing, how certain carriers have looked at this market and are now pricing it at all, jet fuel, et cetera. It has changed the market dynamic, no doubt. We've had this whole narrative around value, which we still believe Las Vegas is an amazing value. And so that's still something we continue to talk about and continue to push our way through, if you will. And so because I have watched New York, by the way, New York, there's not an inventory -- this is like lack of inventory. So there are certain reasons certain markets are doing better than others.

But no doubt, undoubtedly, Las Vegas has been hurt more than most. The Canada issue, the international travel issue has not helped. And so we just need to push our way through those things really one at a time. Jet fuel is up 90%. I can't imagine next year it's going to double. I can imagine, I think we've hopefully seen given all our catastrophe at the end of that push, if you will, and hopefully, things begin to improve and things begin to normalize, and I will go back to my opening comments, while Las Vegas has had a lot of ups and downs, and it's seen its share of whether it was COVID or the Great Recession and then [ Ian, ] historically, the CAGR always comes back, and we continue to grow this market. And we have every belief that we're going to continue to do that moving forward.

So time to tell when. We all understand the circumstances around macro here as well as you do. And so it's not completely within our remit, but that we can control, we're very focused on.

Daniel Politzer

Got it. And then -- and just going back to valuation. I think Jonathan laid out the 2.6x implied valuation, and there's no value in Osaka. I guess -- how do you think about becoming more aggressive with that repurchase authorization? And just to confirm, have you been locked out of the market just given the circumstances around some of the people stuff?

Jonathan Halkyard

Yes. We chose not to repurchase shares in the third quarter because of just the circumstances surrounding the company, but as Bill noted in his opening remarks, those circumstances are now concluded. I would also add, while, certainly, it comes down to a matter of financial policy, I think that the company's financial leverage and the nature of our capital structure, such as it is, I think, would allow for us if we do see that opportunity to take leverage up a little bit in order to capitalize on what we see as just this incredible dislocation of the value against the underlying cash flows of the business.

Operator

And our next question today comes from John DeCree at CBRE.

John DeCree

Everyone Maybe, Jonathan, on the same topic with the $1 billion or so of equity contribution for '27 and $28 to Osaka. How are you thinking of funding those commitments kind of contemplated cash on hand and cash flow. I know you used the yen and not made a facility for a smaller contribution a while back. So just curious how you're thinking about that over the next 2 years?

Jonathan Halkyard

Well, we -- well, Sarah put together that end facility with a few of our relationship banks would love to be able to do more of that. It's a very effective cost funds for us. So we'll do that if we're able to. But the reality is, is we'll be funding these out of our cash on hand and our free cash flow over the next couple of years. It's also the case that the project is fully funded, of course, between our commitments in Orix's commitments and a senior credit facility in Japan. But this is an over-equitized project. And so coming out of the gate, probably something like 2x leverage when it opens.

So whether it be before opening or shortly thereafter, I'm certain that it will be on our list to refinance that and potentially repatriate some funds back to ourselves and Orix. That's down the line. But just to give you an idea of the -- what we think is going to be the capacity of this operation to really ultimately finance itself.

John DeCree

Understood. We recognize the new slides in the deck, which are fantastic on Osaka. Maybe one more as a follow-up internationally for MGM Digital with Brazil kind of shutting down some unexpectedly last month. I don't think it was a huge piece of the business at the moment, but was certainly an area of long-term growth. And so curious, maybe, Bill, if you have any thoughts on Brazil and kind of how that might play out, your best guess or your appetite to be involved in that market going forward, should it real?

William Hornbuckle

John, I'll turn this to Gary because he's literally on this every day. I was on the phone call today about it. Gary, why don't you step up?

Gary Fritz

Sure. Yes. I think Brazil is a case study, perhaps not believing the prediction markets. So I'll joke aside, I believe Bolsonaro was a 80% favorite. So certainly, the election result caught us by surprise. I think you caught everybody by surprise. But that being said, when the provisional measure was put into place last month in September, we certainly began the contingency plan in Brazil we were able to reduce some of our fixed costs in Brazil accordingly. I do want to thank our team in Sao Paulo for the team that is continuing to remain with the business for their perseverance and what I think is a challenging set of circumstances.

So we've contingency planned for a variety of scenarios ranging around different ways the market may or may not reopen. So I think we are, as much as anybody else, watching what the Brazilian Congress is going to do what the billing courts are going to do. And we feel blessed to have our partner down there who can help navigate through some of the noise, perhaps better than anybody else in the country can. So we're privileged to have them as partners. And we'll just see what -- how the regulation shakes out, and we're planning for a variety of different scenarios. I think that's the best we can do right now.

John DeCree

Understood. Gary, I really appreciate your color on that.

Operator

And our next question today comes from Barry Jonas at Truist.

Barry Jonas

You covered the Strip a bit, but I just want to make sure I understand. Can you talk about kind of the month-to-month cadence. It sounds like the end of September was really challenging. But how were trends before that? I guess what I'm getting at is I'm trying to better understand, thinking for visibility for Q4, whether that growth or contraction, if there's any visibility as we update our models here?

Jonathan Halkyard

I mean I'll give you a sense of the cadence in terms of the room rates through the quarter because as we've talked about, that was really the source of the EBITDAR decline in Las Vegas year-over-year. In July, coming off of July the last time we spoke, we were pretty much flat year-on-year, if anything, maybe down very low single digits, August was down about mid-single digits and September was down high single digits for us just broadly in terms of ADR. October right now is looking a lot more like July, and I think as I noted, November, F1 has been really shaping up very nicely across the spectrum. December, we've had some convention business rotate out as we expect and we need to work to fill that back up for December. So all of this is combined with a bit of a shorter booking window than we've seen over the last year or so. So with that note of caution, I would say the quarter is off to probably a little bit better start than it was when we last spoke.

Barry Jonas

Great. And then just shifting gears, Virginia came close to legalizing iGaming and Maryland has discussed in the past that we D.C. has. So as we look to '27, Bill, is this the year iGaming move in the Mid-Atlantic? And I guess, how do you see it impacting National Harbor, if the answer is yes?

William Hornbuckle

Look, we've always been encouraged, and we have the Michigan obvious example to Linoone, which is probably the best live example anywhere in the world so that is it taking from or giving to -- we're optimistic on both. It doesn't mean it happens. We've all seen this cycle, but you're right. Virginia came very close. We've had real dialogue with the government of Maryland. And there's -- I think there's opportunity in both. I can tell you this will be all over it. You all understand the impact really of the 5 states or in iGaming is almost 60%-odd of that business closer to 70%, and it's really 3 states.

And those would be extremely accretive to that business. And so we've got lobbyists. -- we've got ourselves. I've been involved in this for a while with certain government officials as well and will continue to be. So no promises, but we are hopeful for both of those actually.

Operator

And our next question today comes from Chad Benyon at Macquarie.

Chad Beynon

I wanted to ask about the regional gaming same-store margins. I know removing North field kind of brought down where that level is, but the flow-through was also a little bit more negative than I think we all expected there. Anything to call out for this quarter, which is seasonally 1 of the stronger ones?

Ayesha Molino

Jonathan noted in his remarks, we had a bit of a hold impact at a couple of our properties, which was material for the quarter. Beyond that, nothing really to call out. There's a little bit of BI impact year-over-year. But really, I think that the teams there have done a good job. We've got a net reduction in same-store FTEs and they continue to stay very, very focused on running those businesses efficiently.

Chad Beynon

Okay. Great. And then as we think about '27, you highlighted some of the bigger events that are coming to Strip, and I think we understand the historical seasonal patterns. International business was something that we've kind of cycled through, I think, 1.5 years or almost 2 years of that negative growth. Does that need -- do we need to see lower airfare prices for that to come back? Or are you starting to see that at least inflect in terms of not getting worse with that piece of the business?

William Hornbuckle

Yes. Chad, it's Bill. We see -- look, interestingly, Mexico has never gone down to the contrary, Mexico continues to come up and is now the #1 import market. Canada has rebounded. Now having said that, was down 30-something percent to Las Vegas, and it's rebounding, not to the extent we'd all like to see it. And it will take time, particularly out of Canada for Canadian airline and operators to get, if you will, refocus. That said, some of that has to tie the political rhetoric, and we'll see where this all goes. Generally speaking though, part of the value of the dollar when it comes to Europe, et cetera, but see international valve on the mend is how I would phrase it.

Operator

And our final question today comes from Steven Wieczynski at Stifel.

Steven Wieczynski

I want to ask a Macau question, if possible. Bill, obviously, your market share over there is -- it's really in a good spot. It's really high yet at the same time, we understand the promotional environment over there is elevated. So just wondering how much of the decline that we kind of witnessed here in the third quarter from a margin perspective in Macau is somewhat promotional related versus other factors that are weighing on that, that could be labor or other things like that.

William Hornbuckle

Well, Steve, we kept Kenny up. So Kenny, I'm going to let you answer this one. .

Xiaofeng Feng

Okay. Thank you, Bill. Thank you for the question. Actually, like you can see our margin, I think like the pretty consistent. Like this quarter, at MGM China label like we are at about 26.9%. And compared to the previous quarter, we are down a little bit but as you know, there are a lot of factors impacting our margins like the lag factor and also the events of calendars and high-end play, et cetera. But we are very focusing on our efficiency. We have been guided the street or margin range at MGM China level would be in mid-20s to high 20s we have been consistently delivering this for the past few years. All competitors under the street, they are watching about the reinvestment levels.

Like as I said, all we said, I mean, the investment level or the cost level is just a percentage, what -- it doesn't represent all at MGM China, we are competing here, so we are competing for the underlying products the services, the innovations every employee from myself to the frontline caligus is an ecosystem, and this is kind of a positive structure that we are focusing on. So we are focusing. We utilize our advantage about our deep outstanding of our customers, our actions, quick actions quick actions.

So to target our targeted like premium mass customers. I think that's what we are competing. This all web is not purely like a figure.

Steven Wieczynski

Okay. And then, Bill, look, I don't think you're going to answer this question, but let's add some time on and anyway. In your prepared remarks, you noted that all discussions between you and people and are done. And I assume that means that goes both ways, meaning look, there obviously were some costs. There were some rumors out there about you guys kind of flipping the table and potentially going after those guys. So whatever you can say about that, if anything, would be...

William Hornbuckle

I will answer that. Look, we are done, and I meant that we're going to refocus on our business, the dialogue back and forth between us and people on, you buy us, we'll buy you. It was all about trying to unlock the value of that 25% of our shares, we're done. And that's our position, that's people's position. Barry of node and Joey have been both great board members from IAC and now people participate heavily in our vision and our thinking for longer term, and we encourage them and we encourage that activity. So we're excited to get back to the way it was, and continue to focus more on the business that we have in front of us here.

Operator

Thank you. Ladies and gentlemen, that concludes our question-and-answer session. I'd like to turn the conference back over to Bill Hornbuckle for any closing remarks.

William Hornbuckle

Really none. I think obviously, we understand this quarter. We are very -- still remain optimistic about Las Vegas and its long-term future. We always have, and frankly, we always will be. We love the stability our regionals bring. The activity case that the team has brought in Macau, which is second to none literally, and it's proving that. And I'm most excited by Digital. Despite predictive despite everything else, Digital had a great quarter. we're showing real growth in the U.K. and some of our other markets on MGM's wholly-owned digital. Brazil is unfortunate, but the good news is it wasn't -- it was costing us money now is costing us less. And we'll see where this ultimately ends up over the next couple of months. That won't drag on forever for us. We will make a decision on that come sooner or later on how to handle that market and what to do.

But I thank everybody for their time, and have a great evening.

Operator

Thank you, sir. That concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines, and have a wonderful day.