MGM Digital narrows third-quarter loss to $4m as revenue rises 6%

MGM Resorts said its MGM Digital segment narrowed its adjusted EBITDAR loss to $4m in the third quarter of 2026, from $23m a year earlier, according to the company's third-quarter results. Segment revenue rose to $184m from $174m, a 6% increase, as growth slowed from the previous quarter.

MGM Digital combines LeoVegas with other consolidated interactive gaming subsidiaries and excludes the BetMGM North America joint venture. LeoVegas has been included in MGM's accounts since the acquisition completed on 7 September 2022. Over the first nine months of the year, segment revenue was up 21%.

On a call with analysts, management credited the BetMGM brand with an 8% increase in MGM Digital's business-to-consumer revenue, and named Spain, the Netherlands and the UK as the markets behind the improvement, a transcript published by The Motley Fool shows. MGM took its UK online sports betting operation onto its own platform in August, and that platform is now the source of over 80% of the company's online sports revenue in the country.

Group adjusted EBITDA for the quarter came in at $403m, down from $506m. Regional Operations accounted for an 8% revenue decline and the Las Vegas Strip resorts for a 2% decline, the bulk of the group's fall, while Strip EBITDAR was 12% lower at $531m. In Las Vegas the average daily room rate dropped 8% to $218 and revenue per available room dropped 8% to $193; occupancy held at 89%.

In Macau, MGM China set records for revenue, at $1.1bn on a 5% rise, and for market share, at 17.1%. Even so, segment adjusted EBITDAR declined 7%, to $264m from $284m, and the intercompany branding licence fee expense was $22m higher than a year earlier. MGM's net loss attributable to the company shrank to $17.1m from $285.3m, though adjusted earnings per share came in below what had been expected.

These figures arrive while operators in the UK and Europe are being asked to pay more tax. According to the government, its package, which includes the UK duty increase, will bring in over £1bn annually. From April 2027, a 25% remote betting rate will apply within General Betting Duty.