LAS VEGAS — The math worked in MGM Resorts International’s favor at the Las Vegas Strip last quarter. Casino revenue at the company’s marquee properties jumped 17 percent to $536 million in the three months through June, lifted by a table games win percentage of 29.6 percent, well above the 22.9 percent the house captured in the same period a year earlier. Strip favorable variance did a significant portion of the work behind what MGM announced Tuesday as record consolidated quarterly revenue of $4.45 billion.
Total revenue topped Wall Street’s $4.44 billion estimate, sending adjusted earnings per share to $0.59 and beating the $0.56 consensus. But the headline number is not a simple growth story. Adjusted EBITDA fell to $610 million from $648 million. Diluted adjusted EPS declined from $0.79 a year earlier. The digital arm widened its losses. MGM China produced less profit on flat revenue. MGM Resorts’ record quarter, read closely, is a quarter where the company ran hot at the tables and worked to keep pace everywhere else.
Chief Executive Bill Hornbuckle called the results a demonstration of “the strength of our diversified portfolio with record second quarter consolidated revenue.” That framing does not settle the question of what the portfolio looks like when the win rate mean-reverts, and it will, because variance always does.
Las Vegas Strip Resorts generated $2.17 billion in revenue, up 3 percent year over year, with Segment Adjusted EBITDAR of $735 million, also up 3 percent. Regional Operations logged what MGM described as an all-time best same-store quarterly revenue figure of $904 million, up 3 percent after adjusting for property dispositions. Total regional revenue of $924 million was actually down 4 percent year over year because of those dispositions, a fact the same-store record tends to crowd out of the headline.
MGM’s digital operation remained a cost center. MGM Digital reported $196 million in revenue, up 20 percent year over year, but the segment generated an Adjusted EBITDAR loss of $31 million, wider than the $26 million loss a year earlier. The company’s jointly owned BetMGM platform separately reported $711 million in quarterly net revenue, a 3 percent year-over-year rise, according to MGM’s second-quarter earnings release. Adjusted EBITDA at BetMGM fell 15 percent to $74 million. iGaming net revenue grew 8 percent to $483 million, while online sports net revenue was essentially flat at $228 million.
The regulatory backdrop around digital gambling continues to shift in ways that affect operator cost structures. A federal court this week blocked Minnesota’s attempt to ban prediction market platforms, a ruling that underscores how contested the legal terrain around online wagering products remains across states where operators have been investing heavily. BetMGM does not operate prediction markets, but the broader pattern of state-level regulatory flux shapes customer acquisition costs for every digital gambling company.
The contrast with its principal Las Vegas rival was instructive. Caesars Entertainment found Las Vegas a drag in what will be its last quarter as a public company before Tilman Fertitta’s acquisition closes. MGM’s Strip properties moved in the opposite direction, but the key differentiator was the win rate, not any structural gap in visitor traffic or per-visitor spending that both companies are navigating differently.
MGM China reported $1.1 billion in quarterly revenue, essentially unchanged from a year earlier. Segment Adjusted EBITDAR fell to $257 million from $302 million, a 15 percent decline driven by a higher intercompany licensing fee paid to MGM Resorts rather than by any deterioration in Macau casino floor activity. The company maintained that its Osaka integrated resort project remains on track for a 2030 opening, an assertion that carries a four-year horizon.
MGM repurchased approximately 4 million shares for $164 million during the quarter. Roughly $1.4 billion remained under the board’s existing authorization as of June 30. Chief Financial Officer Jonathan Halkyard credited the company’s “disciplined and targeted capital allocation strategy” with supporting Adjusted EBITDAR growth at Las Vegas Strip properties. That strategy and its outcomes in a quarter where the table games win rate does not run seven percentage points above the prior-year comparison is a question Tuesday’s announcement did not address.
No guidance update accompanied the results. MGM entered the quarter with the Strip in year-over-year growth mode and exited in the same posture. Whether the third quarter delivers another comparable result without a favorable win-rate tailwind is not something Tuesday’s record-revenue announcement attempted to answer.
