MGM Resorts Surpasses Expectations Amid Las Vegas Struggles, Driven by Online Success
The global gaming giant MGM Resorts has achieved impressive financial results in a challenging environment for its Las Vegas properties, largely due to its strong online betting platform, BetMGM, and growing success in China.
In the second quarter ending June 30, MGM reported net revenues of $4.4 billion, exceeding analysts’ predictions of $4.31 billion. This figure marks the highest quarterly revenue the company has ever recorded, bolstered by exceptional performances from its regional operations.
Earnings per share reached $0.79, significantly higher than the anticipated $0.58. This achievement is particularly striking given the backdrop of declining visitor numbers on the Las Vegas Strip, which saw an 11% drop in June according to the Las Vegas Convention and Visitors Authority.
MGM Resorts’ CEO Bill Hornbuckle attributed the lackluster performance in Las Vegas to ongoing renovations at the MGM Grand. The $65 million refurbishment project is expected to counter its revenue temporarily, with a reported $40 million impact in the first half of the year. The company’s EBITDAR for its Vegas properties was $711 million this quarter, a decrease of $72 million from the previous year.
“Despite current challenges, MGM Resorts’ extensive operational reach and diverse portfolio contributed to robust growth this quarter,” Hornbuckle stated. He emphasized that Las Vegas remains strong fundamentally, although the MGM Grand’s renovations have heavily influenced the results.
BetMGM’s Growth Potential
BetMGM, MGM Resorts’ online gaming collaboration with Entain, has emerged as a key growth driver. Hornbuckle referred to it as a “near-term catalyst,” noting increases in player engagement and retention rates, which are vital for profitability.
In the first half of the year, BetMGM posted an EBITDA of $109 million, a significant turnaround from a $123 million loss reported in the same timeframe last year. Hornbuckle is optimistic about achieving a long-term profitability target of $500 million, with projections suggesting it could be met by 2028, provided the venture maintains double-digit revenue growth.
Following a recent business update, BetMGM CEO Adam Greenblatt elaborated on the strategic advantages gained from refined player targeting methodologies, which leverage advanced analytics and artificial intelligence.
Strategic Investment in Player Engagement
Greenblatt highlighted how these innovative approaches have enabled BetMGM to optimize its marketing strategies earlier in the customer lifecycle. This recalibration helps the platform identify player value and adjust reinvestment strategies accordingly, ultimately enhancing profitability by avoiding unprofitable player investments.
“This new capability has been in development since last fall and continues improving throughout 2025,” Greenblatt remarked, with CFO Gary Deutsch adding that the venture has benefitted from an uplift in high-margin, low-stake betting.
Despite these advancements, BetMGM faced stiff competition, falling behind Fanatics in market share with 6.2%, compared to Fanatics’ 7.6% in the second quarter.
Legislative Advocacy for Tax Deductions
In closing remarks on the earnings call, Hornbuckle addressed MGM’s ongoing efforts to lobby against a recent tax change proposed by the Trump administration that would limit gambling loss deductions. Along with other industry leaders, he recently met with the chairman of the House Ways and Means Committee to advocate for a repeal of this measure, which critics argue unfairly impacts professional gamblers.
In the international market, MGM China reported record adjusted EBITDAR, reflecting a year-over-year increase of about 3%. COO Hubert Wang remains positive about the “premium mass” demographic—players who wager significantly more than average but do not fall into the VIP category.
As of Thursday, MGM Resorts’ stock was trading around $36, a decrease of about 4% for the day but still showing a recovery with a 40% increase since dipping to three-year lows in April.
In summary, while MGM Resorts navigates challenges in its Las Vegas operations, its online gaming successes and strategic focus on market expansion offer a promising outlook for future growth.