MGM Resorts Q3 2025: A quarter defined by China’s surge, digital expansion, and a heavy write-down

MGM Resorts delivered a mixed, but telling, set of results for the third quarter of 2025. Beneath modest top-line growth sat a powerful performance from MGM China, continued momentum in BetMGM, and the weight of a one-off impairment that pulled the company to a loss on paper despite solid operating fundamentals.

For a group balancing Las Vegas cyclicality, regional stability, Macau resurgence, and the long runway of North American online betting, Q3 was less about headline earnings and more about strategic repositioning.

A 2% revenue lift—held back by an expensive strategic retreat

Consolidated net revenues came in at $4.3 billion, up 2% year-on-year. The main engine was MGM China, which posted its best third quarter ever as Macau’s recovery solidified. But on the income line, the story flipped dramatically:

• MGM reported a net loss of $285 million, versus a $185 million profit a year ago.
• The driver was a $256 million non-cash goodwill impairment tied to the decision to withdraw its application for a commercial gaming license for Empire City.
• An additional $93 million in write-offs related to Empire City weighed further on results.

Stripping out these impacts, MGM’s Adjusted EPS came in at $0.24, down from $0.54 but positive and operationally meaningful.

Las Vegas: stabilization begins after a soft summer

For MGM’s Las Vegas Strip Resorts, Q3 was a reset quarter. Net revenues fell 7% to $2.0 billion, pressured by:

• the MGM Grand room remodel,
• lower table game win percentage,
• softer RevPAR, and
• weaker food & beverage revenue compared to last year’s unusually strong base.

Segment Adjusted EBITDAR fell 18% to $601 million, reflecting both lower revenue and reduced business interruption proceeds compared to the prior year.

But management emphasized signs of renewed stability: convention traffic returned, and the Grand’s remodel is now complete—positioning MGM to capture fourth-quarter and 2026 demand.

Regional operations steady, if unspectacular

MGM’s regional properties continued to play their role as a dependable profit engine:

• Revenues were essentially flat at $957 million.
• Segment Adjusted EBITDAR slipped just 1% to $296 million.

Growth was never the expectation here. Stability was—and it delivered.

MGM China delivers standout performance

The real star of Q3 was Macau.

• Net revenues surged 17% to $1.1 billion.
• Segment Adjusted EBITDAR rose 20% to $284 million.
• Market share climbed to 15.5%, an all-time Q3 high for the operation.

Growth was driven by robust main-floor table activity, with drop and win both rising double digits. For MGM, which has steadily invested in premium mass configuration and operational efficiency in Macau, Q3 was a validation of strategy.

MGM Digital: steady growth despite losses

MGM Digital—which includes LeoVegas and global online brands outside the BetMGM joint venture—continued its expansion.

• Revenues grew 23% to $174 million.
• The division posted a Segment Adjusted EBITDAR loss of $23 million, slightly better than last year.

With brand rollouts continuing across Europe and new markets like Brazil gaining traction, MGM Digital remains a long-horizon investment rather than a near-term profit center.

BetMGM accelerates — and for the first time, MGM gets paid

One of the most consequential developments of the quarter came from MGM’s 50/50 venture with Entain.

• MGM’s share of operating income from BetMGM jumped to $23.7 million, up sharply from $3.2 million a year earlier.
• BetMGM raised its full-year 2025 guidance for the second consecutive quarter.
• Most importantly, the business announced it will begin cash distributions to MGM by year-end—starting with at least $100 million.

For a company long criticized for funding an online venture without seeing cash return, this is a critical inflection point.

Portfolio reshaping continues with divestment and new financing

MGM also announced two major strategic moves:

1. Sale of MGM Northfield Park operations

The $546 million deal removes a non-core asset and reinforces MGM’s focus on premium integrated resort markets. Management described the sales price as “a solid multiple,” hinting at undervaluation relative to MGM’s own stock.

2. A new $300 million yen-denominated credit facility

At an attractive ~2.5% interest rate, the facility supports the ongoing development of MGM Osaka, one of the largest and most anticipated integrated resort projects globally.

These moves underscore MGM’s strategic pivot: fewer assets, more focus, bigger bets.

Hotel and casino performance: a quarter of contrasts

Las Vegas hotel metrics declined from last year’s peak

Gaming trends split across geographies

Las Vegas saw:

• Casino revenue down 5%,
• Table win down 6%,
• Slot win up 3% as casual gaming remained robust.

Regional casinos were stable:

• Casino revenue up 0%,
• Slot win up 2%,
• Table drop up 4%.

MGM China was exceptional across the board, with main-floor drop and win both rising 18–17%.

The bottom line: a strategic quarter disguised by large accounting charges

Despite a headline net loss, Q3 2025 was not a weak quarter for MGM.

Underneath the Empire City write-downs, the company showed:

• Growth in consolidated revenue,
• Strength in Macau,
• Stability regionally,
• Momentum in BetMGM,
• Improved booking trends in Las Vegas, and
• An increasingly global digital footprint.

MGM closes Q3 positioned for a more balanced 2026—supported by Macau’s strength, cash distributions from BetMGM, a newly remodeled mega-property in Las Vegas, and the beginnings of its Osaka development financing strategy.

Whether investors look past the impairment to the underlying trajectory will determine how the market interprets this pivotal quarter.