MGM Resorts Outperforms Q2 Expectations

MGM Resorts International beat Wall Street expectations for the second quarter of 2025, driven by robust gains in its digital sports betting venture, BetMGM, and continued strength in its China operations. The performance came despite a downturn in foot traffic on the Las Vegas Strip, where ongoing renovations dampened earnings.

For the quarter ended June 30, MGM reported net revenue of $4.4 billion, surpassing analyst forecasts of $4.31 billion and marking its highest-ever consolidated quarterly revenue. Earnings per share came in at $0.79, ahead of the $0.58 consensus estimate.

The solid results highlight the diversification of MGM’s portfolio beyond Las Vegas. While Strip EBITDAR dropped by $72 million year-over-year to $711 million, record output from regional casinos and international operations helped offset the decline.

Strip Weakness Offset by Digital and International Growth

Las Vegas visitation fell 11% in June, according to the Las Vegas Convention and Visitors Authority. MGM CEO Bill Hornbuckle attributed the local slowdown to disruptions from a $65 million room renovation at MGM Grand, which he said accounted for over 80% of the quarterly decline in Strip earnings. “Las Vegas remains fundamentally solid,” Hornbuckle stated, emphasizing that the downturn was isolated rather than systemic.

In contrast, MGM China posted a 3% year-over-year increase in adjusted EBITDAR, driven by the continued recovery in the “premium mass” segment. COO Hubert Wang reiterated the division’s focus on this higher-spending, non-VIP customer base.

BetMGM Swings to Profit on Targeted Growth Strategy

The standout performer in the quarter was BetMGM, the joint venture with Entain. The platform reported first-half EBITDA of $109 million—its first-ever profit—reversing a $123 million loss from the same period in 2024.

Hornbuckle credited BetMGM’s profitability to disciplined player acquisition and better management of lower-value users. He described the digital arm as a “near-term catalyst,” noting growth in both monthly active users and player engagement within iGaming.

BetMGM executives pointed to the role of artificial intelligence in optimizing marketing spend and refining player value models. CEO Adam Greenblatt and CFO Gary Deutsch emphasized that newer analytics capabilities have allowed for faster reinvestment decisions and a higher concentration of high-margin betting activity.

Despite the financial progress, BetMGM’s market share dipped to 6.2% in Q2 across 14 key states, trailing Fanatics, which held 7.6%. Analysts from Citizens projected that BetMGM could reach $500 million in annual profitability by 2028, assuming sustained double-digit revenue growth and improved operating leverage.

In the earnings call, Hornbuckle also addressed MGM’s political lobbying, particularly efforts to reverse a gambling deduction cap included in former President Trump’s tax legislation. The amendment, set to take effect in 2026, limits annual loss deductions to 90%, which industry leaders argue penalizes professional gamblers. Hornbuckle said he recently met with the chairman of the House Ways and Means Committee in Las Vegas, alongside Caesars CEO Tom Reeg and Wynn CEO Craig Billings, in an attempt to have the amendment repealed.

 

MGM Resorts’ operational scale and diversity delivered solid growth in the second quarter.

Market Reaction

Despite the earnings beat, shares of MGM Resorts fell approximately 4% during Thursday’s session, trading around $36 as of midday. The stock remains up 40% from April lows when it bottomed at around $25.

While Las Vegas continues to experience short-term headwinds, MGM’s second-quarter performance suggests that its growing digital presence and international diversification are helping to buffer regional volatility. Investors and analysts alike will be watching closely to see whether BetMGM’s profitability holds—and whether renovations in Vegas can translate to renewed strength by year-end.