In the third quarter of 2025, MGM Resorts International reported a net loss of $285 million, a downturn influenced by its strategic decision to withdraw from the New York casino license process and associated write-downs. Despite achieving modest revenue growth and record earnings in Macau, MGM faced challenges in the Las Vegas market, leading to a dip in overall profitability.
A tough quarter marked by significant decisions
Sometimes, progress requires taking a step back. MGM’s total net revenues increased by 2% year over year, reaching $4.3 billion, largely due to a robust recovery in Macau through MGM China, which achieved a 15.5% market share during the quarter. However, the decision to pull out of the Empire City license bid resulted in a $256 million goodwill impairment and $93 million in other write-offs. This shift turned last year’s $185 million profit into a $285 million loss this quarter. Adjusted EBITDA decreased to $506 million from $574 million the previous year, and adjusted diluted EPS dropped to $0.24 from $0.54.
The results of this quarter underscore MGM’s strategic focus on safeguarding long-term value rather than aggressively pursuing new licenses. The company seems to be playing the long game, aware that chasing every opportunity might not always lead to sustainable growth.
Las Vegas faces challenges while luxury segments hold strong
Even on the bustling Las Vegas Strip, momentum can change quickly. MGM’s Las Vegas resorts experienced a challenging quarter, with revenues falling 7% to $2.0 billion and EBITDAR declining 18% to $601 million. The company attributed this decline to lower table game win rates, reduced spending on food and beverages, and temporary disruptions from room renovations at the MGM Grand.
Analyst Jordan Bender from Citizens noted that performance varied across MGM’s portfolio. While high-end properties maintained stability, value-focused resorts like Luxor and Excalibur saw a $40 million drop in EBITDAR. Bender suggested that softness in the lower-end market could persist into early 2026, even with a promising event calendar and stable travel conditions.
Macau’s resilience
When one market falters, another can excel. MGM China posted its best quarter since the pandemic, with net revenue rising 17% to $1.1 billion and EBITDAR increasing 20% to $284 million. This performance solidified MGM’s status as one of Macau’s leading operators, driven by a sustained recovery in premium gaming and growing tourism demand. The strong results from Macau helped offset weaker performance in the US and reinforced MGM’s commitment to global diversification.
Digital growth underscores strategic moves
While physical properties faced challenges, MGM’s digital segment told a different story. Online revenue, excluding BetMGM, surged 23% to $174 million, reflecting stronger engagement across markets. Meanwhile, BetMGM, the joint venture with Entain, continued to deliver top-line and EBITDA growth, prompting the company to raise its full-year guidance once again. MGM anticipates its first cash distribution from BetMGM, projected to be at least $100 million by the end of 2025, marking a milestone in the joint venture’s growing profitability.
Furthermore, MGM sold its Northfield Park operations for $546 million, a move that MGM said highlights “the value gap in our stock.” Additionally, the company secured a ¥300 million (US$2 million) credit facility at 2.5% interest to support the development of its $10 billion Osaka integrated resort.
Analysts remain optimistic despite challenges
The theme for MGM appears to be short-term sacrifice for long-term gains. Barry Jonas from Truist maintained a Buy rating on MGM shares, expressing confidence in the company’s Las Vegas event calendar, the strategic partnership with Marriott, and international expansions in Macau and Osaka. He acknowledged ongoing uncertainty regarding whether MGM will attempt to acquire Entain’s 50% stake in BetMGM, noting that the path to full ownership “isn’t as clear as some once thought.”
Nonetheless, Jonas described MGM as “pragmatically positioned for global growth,” emphasizing a long-term vision grounded in brand strength, digital expansion, and a disciplined investment approach. MGM’s Q3 results tell a story of recalibration, withdrawing from one race to strengthen its position in other markets. While the current losses may be painful, the strategy appears to be aimed at securing long-term success.
James Miller is a distinguished casino strategy expert with a wealth of experience in the gambling world. At CasinoNoDeposits.com, James focuses on crafting effective gaming strategies and providing insightful reviews to guide players towards making informed decisions. His deep understanding of casino mechanics and promotional offers makes him a valuable asset to the team. Dedicated to educating players, James ensures that every piece of content is accurate, actionable, and reader-friendly.
4/5Win Vegas Plus Casino
€10 FREE
