MGM Digital Narrows Adjusted EBITDAR Loss to $4 Million on 6 Percent Revenue Growth
MGM Digital narrowed its Q3 adjusted EBITDAR loss to $4m on $184m revenue, up 6% year-over-year. Nine-month revenue rose 21% but quarterly growth slowed amid higher UK taxes. Spain, Netherlands, UK and proprietary sports platform drove gains while group EBITDA fell on Las Vegas weakness.
SCCG Take — International digital units can approach break-even through market-specific execution and platform control despite tax headwinds. Operators must monitor how further UK rate changes in 2027 compress margins.
MGM Digital narrowed its adjusted EBITDAR loss to $4 million in the third quarter from $23 million a year earlier. The LeoVegas-led international online segment posted revenue of $184 million, a 6 percent increase from $174 million. Spain, the Netherlands and the UK drove business-to-consumer gains as the unit moved closer to break-even.
The slowdown in quarterly growth arrives while UK and European operators absorb higher taxes. Over the first nine months the segment delivered 21 percent revenue growth. The BetMGM brand lifted business-to-consumer revenue by 8 percent. MGM launched its own online sports betting platform in the UK in August. That platform now accounts for more than 80 percent of the company's online sports revenue in the market.
Tax Environment Weighs on Quarterly Momentum
The second quarter had recorded stronger growth before the elevated UK online casino tax took full effect. The government states the tax package will raise more than £1 billion a year. A further increase takes effect in April 2027 when a 25 percent remote betting rate applies within General Betting Duty. MGM Digital combines LeoVegas with other consolidated interactive subsidiaries and excludes the BetMGM North American joint venture. Results have been included since the LeoVegas acquisition closed on 7 September 2022.
Group Results Show Land-Based Pressure
MGM Resorts International reported group adjusted EBITDA of $403 million, down from $506 million. Most of the decline traced to an 8 percent drop in regional operations revenue and a 2 percent decline at Las Vegas Strip resorts. Strip EBITDAR fell 12 percent to $531 million. Average daily room rate on the Strip declined 8 percent to $218 while occupancy held at 89 percent.
MGM China delivered record revenue of $1.1 billion, up 5 percent, and a record 17.1 percent market share. BetMGM reported net revenue of $710 million, a 7 percent increase from $667 million, and contributed $34 million in payments to MGM. As reported by Casino Beats, these figures highlight divergent performance between MGM's digital and land-based units.
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