MGM Q3 Casino Margins Narrow as China Sets Record

MGM Resorts International (NYSE: MGM) reported mixed third-quarter 2026 segment results, with record revenue and market share at MGM China and improving digital profitability offset by lower earnings and narrower margins at its Las Vegas Strip and regional casino operations.

For the quarter ended September 30, Las Vegas Strip resorts generated net revenue of $1.95 billion, down 2% from $1.99 billion a year earlier. Segment adjusted EBITDAR fell 12% to $531 million, while the margin contracted to 27.2% from 30.3%.

Regional operations recorded $883 million of net revenue, an 8% decline on a reported basis following the sale of Northfield Park operations in April. On a same-store basis excluding Northfield Park, revenue increased 1%. Segment adjusted EBITDAR declined 18% to $243 million, or 7% on a same-store basis, and the same-store margin narrowed to 27.5% from 29.7%.

The company said its regional properties nevertheless produced an all-time record for same-store slot win and a record third-quarter level of same-store casino revenue, supported by targeted capital deployment.

MGM China reaches quarterly records

MGM China was the strongest source of revenue growth among MGM Resorts’ resort segments. Net revenue rose 5% to a record $1.14 billion from $1.09 billion, while quarterly market share reached a record 17.1%. The company said MGM China’s gross gaming revenue outperformed the broader Macau market both sequentially and year over year.

Profitability did not rise with revenue. MGM China’s segment adjusted EBITDAR decreased 7% to $264 million from $284 million, and its margin fell to 23.2% from 26.1%.

Under IFRS reporting, MGM China posted third-quarter revenue of HK$8.93 billion, compared with HK$8.51 billion a year earlier. Adjusted EBITDA was HK$2.39 billion, up slightly from HK$2.37 billion. Slot-machine gross win increased at both MGM Macau and MGM Cotai, while room occupancy remained above 93% at each property.

Digital losses narrow as BetMGM earnings grow

MGM Digital, which excludes the BetMGM North America joint venture, increased net revenue by 6% to $184 million. Its segment adjusted EBITDAR loss narrowed to $4 million from $23 million, improving the margin to negative 2.3% from negative 13.4%.

Separately, BetMGM reported estimated third-quarter net revenue from operations of $710 million, up 7%. iGaming revenue increased 6% to $483 million, while online sports revenue rose 7% to $216 million. Adjusted EBITDA more than doubled to $86 million from the prior-year period, even as average monthly active users declined 3% to 878,000.

BetMGM attributed the performance to new exclusive gaming content, enhancements to its sportsbook, continued player management and targeted acquisition of online sports customers. It reiterated full-year 2026 guidance for net revenue of $2.9 billion to $3.1 billion and adjusted EBITDA of $300 million to $350 million.

The venture distributed $50 million to its two parent companies and paid another $18 million in branding and licensing fees during the quarter. MGM Resorts’ share of those distributions and fees totaled $34 million. BetMGM’s figures are non-GAAP estimates that have not been audited or reviewed and may be adjusted during preparation of its audited financial statements.

Osaka development remains scheduled for 2030

MGM Resorts said construction of its integrated resort in Osaka remains on track for a 2030 opening. About 70% of the foundation piles and 11% of the overall project had been completed, with concrete slab and structural steel work progressing on schedule.

The company expects to invest approximately ¥43.3 billion in the unconsolidated Osaka affiliate during 2026. Its other full-year financial planning assumptions include domestic capital expenditures of about $725 million to $775 million, of which approximately $600 million is designated as maintenance spending. MGM also expects 2026 cash rent and ground lease payments of about $1.8 billion.

Management’s operating priorities include using artificial intelligence and automation in guest services, workforce scheduling, cleaning, marketing, group sales and supply-chain processes. The company is also applying AI tools to accelerate the development and testing of digital and marketing platforms.

MGM identified economic and market conditions, competition from gaming operators and other travel destinations, regulatory changes affecting iGaming and sports betting, and the timing and cost of projects in Japan and Dubai as key uncertainties. Other risks include licensing and financing requirements in new and existing jurisdictions and potential disruptions to company or third-party information systems. MGM Digital’s operations in Brazil also remain suspended pending resolution of a provisional order temporarily banning fixed-odds betting and online casino games.