Weakness in Vegas at MGM Resorts offset by strong second quarter from BetMGM

Weakness in Vegas at MGM Resorts offset by strong second quarter from BetMGM

Summary

MGM Resorts beat expectations in Q2 despite a marked slowdown on the Las Vegas Strip, driven by a strong showing from BetMGM and solid results from MGM China and regional operations. Net revenue for the quarter was $4.4bn (vs $4.31bn forecast) and EPS came in at $0.79 (consensus $0.58). Strip visitation fell sharply, with renovations at MGM Grand cited as a major drag, while BetMGM swung to profitability and China reported record adjusted EBITDAR.

Source

Source:https://igamingbusiness.com/finance/quarterly-results/mgm-resorts-bolstered-betmgm-q2-2025/

Key Points

• • MGM reported Q2 net revenue of $4.4bn, topping analyst forecasts of $4.31bn.
• • Earnings per share were $0.79, above consensus of $0.58.
• • Las Vegas visitation weakened (June down ~11%); MGM Grand renovations created an estimated $40m headwind in H1.
• • Vegas properties’ EBITDAR was $711m in Q2, down $72m year-on-year.
• • BetMGM delivered first-half EBITDA of $109m, a turnaround from a $123m loss in H1 2024.
• • BetMGM’s improved profitability is credited to AI/analytics-driven player targeting and ‘right-sizing’ reinvestment in players.
• • BetMGM’s Q2 market share across 14 key states was 6.2%, trailing Fanatics at 7.6%.
• • MGM China posted record adjusted EBITDAR, with premium-mass customers showing encouraging trends.
• • MGM executives are lobbying to repeal a forthcoming US tax change limiting gambling loss deductions to 90%.
• • MGM shares traded around $36 (down ~4% on the day) but remain roughly 40% above April lows.

Why should I read this?

Quick and useful: if you track casino stocks, sports betting or industry strategy, this is the one-paragraph explainer that tells you why MGM didn’t collapse when Vegas cooled. BetMGM’s analytics-driven gains and MGM China’s resilience are doing the heavy lifting — worth knowing if you want the punchline without sifting through the whole earnings call.

Context and relevance

This result highlights how diversified operators can offset regional tourism slowdowns with digital gaming and international exposure. BetMGM’s turnaround matters for investors and competitors: improved cohort analytics, lower acquisition waste and higher-margin bets accelerate the path to sustained profitability. The lobbying around the gambling tax deduction also signals near-term regulatory risk that could affect customer behaviour and operator economics in the US.

Additional note

Punchy take: MGM’s Q2 is a reminder that Las Vegas softness isn’t the whole story — the business is increasingly balanced between brick-and-mortar volatility and scalable online margins.