Harry Grant
Segment Loss Narrows Despite Slowing Growth
MGM Resorts International reported that its MGM Digital segment narrowed its adjusted EBITDAR loss to $4 million in the third quarter of 2026, a significant improvement from a $23 million loss in the same period a year earlier. The segment posted revenue of $184 million, up from $174 million in the prior year, representing a 6% year-over-year increase. This growth rate marked a slowdown from the previous quarter, which the company attributed to higher taxes in the United Kingdom and Europe.
MGM Digital includes the LeoVegas brand and other consolidated interactive gaming subsidiaries, while excluding the BetMGM North America joint venture. LeoVegas results have been part of MGM’s accounts since the acquisition closed on September 7, 2022. The segment’s revenue growth for the first nine months of 2026 stood at 21%.
UK Tax Package and Platform Shift
A key driver of the current fiscal environment is a UK tax package that the government states will raise more than £1 billion annually. A new 25% remote betting rate under General Betting Duty is scheduled to take effect in April 2027. In response to shifting market dynamics, MGM began operating online sports betting in the UK on its own platform in August 2026. The company reported that its proprietary platform now generates more than 80% of its online sports revenue in the UK.
Within the segment, the BetMGM brand contributed to an 8% increase in business-to-consumer revenue in the third quarter. Gains were led by operations in Spain, the Netherlands, and the UK. Overall, MGM Digital’s revenue growth decelerated in the third quarter compared to a strong second quarter, a trend the company linked to the aforementioned tax increases in European markets.
Group Earnings and Las Vegas Performance
At the group level, adjusted EBITDA declined to $403 million in the third quarter of 2026, down from $506 million in the prior year. The net loss attributable to MGM narrowed to $17.1 million, compared to a net loss of $285.3 million in the same quarter of 2025. Regional operations revenue fell 8% during the period.
Las Vegas Strip resorts reported a 2% decline in revenue. Segment adjusted EBITDAR for the Strip fell 12% to $531 million. Operational metrics in Las Vegas showed that the average daily room rate dropped 8% to $218, and revenue per available room decreased 8% to $193. Occupancy remained stable at 89%, unchanged from the previous year.
China Operations and BetMGM Joint Venture
MGM China achieved record revenue of $1.1 billion in the third quarter, a 5% increase from the prior year. The company also secured a record 17.1% market share in Macau. However, MGM China’s segment adjusted EBITDAR decreased by 7% to $264 million, down from $284 million a year earlier. This decline was partly due to a $22 million year-over-year increase in intercompany branding license fee expenses.
The BetMGM joint venture with Entain reported third-quarter net revenue of $710 million, a 7% rise from $667 million in the prior year. The joint venture made $34 million in payments to MGM during the quarter. For the full year 2026, BetMGM projects net revenue between $2.9 billion and $3.1 billion, and adjusted EBITDA between $300 million and $350 million. The company indicated it expects to finish the year near the bottom of these guidance ranges.
Why It Matters
The introduction of a 25% remote betting tax in the UK from April 2027 directly impacts the profitability calculations for operators like MGM Digital. As the company shifts more UK sports betting to its own platform, the tax burden will likely compress margins in a key market. Meanwhile, the narrowing loss in the digital segment suggests that the integration of LeoVegas is stabilizing, providing a clearer baseline for future performance against the backdrop of stricter European regulation.
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