MGM Resorts Reports Record $4.5bn Revenue in Second Quarter

MGM Resorts International continues its strong upward trajectory, reporting historic highs for the quarter ending June 30. The US-based gaming giant increased its consolidated revenue to $4.5 billion, representing a one percent increase compared to the same period last year. Of particular note is the development of net income, which jumped from a modest $49 million in the previous year to $292 million. These figures highlight the company's dominance in the global market, even though consolidated adjusted EBITDA, at $610 million, remained slightly below the $648 million recorded in the prior year quarter.

This development clearly shows that the diversification strategy is paying off. MGM no longer relies solely on traditional casinos on the Las Vegas Strip but is massively expanding its digital pillars and international locations. Nevertheless, the Strip in Nevada remains the heart of the business. With revenue of $2.2 billion, the resorts there again provided a stable contribution to the overall result. Bill Hornbuckle, President and CEO of MGM Resorts International, expressed satisfaction with the performance of his properties.

Numbers and facts

A closer look at the balance sheet reveals the different speeds of the various business units. While the Las Vegas Strip resorts increased their revenue from $2.1 billion to $2.2 billion, regional operations in other US states saw a slight dip of four percent to $924 million. Interestingly, however, same-store revenue there increased by three percent to $904 million. The digital division, MGM Digital, proved to be a growth engine with a 20 percent revenue increase to $196 million.

Business in Asia developed particularly dynamically. MGM China benefited massively from the removal of Covid-19 travel restrictions in Macau and reported a 37 percent jump in revenue to $1.02 billion. Jonathan Halkyard, CFO of MGM Resorts International, emphasized the disciplined allocation of capital, which led to market share gains in China. The company is also looking far ahead. In Osaka, Japan, the world's largest integrated resort is currently being built, with its opening firmly planned for 2030.

Bill Hornbuckle commented on the results as follows:

"MGM Resorts once again demonstrated the strength of our diversified portfolio with record second quarter consolidated revenue driven by a second consecutive quarter of year-over-year revenue growth for Las Vegas Strip Resorts, all-time best regional operations same-store quarterly revenue and 20 per cent year-over-year revenue growth at MGM Digital." - Bill Hornbuckle, CEO of MGM Resorts International

Background

MGM's expansion is taking place against the backdrop of a changing global gaming market. While land-based casinos in the US are back to full capacity after the pandemic, the battle for market share in the online sector is becoming increasingly fierce. The BetMGM joint venture, operated together with Entain, plays a central role here. According to recent reports, BetMGM was able to achieve a positive EBITDA for the first time in the second quarter, although the consolidated MGM balance sheet still shows an adjusted EBITDA loss of $31 million for the online sector. This is due to high investment costs for customer acquisition and technical infrastructure.

Another important pillar for success is the partnership with Marriott International. By linking the Marriott Bonvoy and MGM Rewards loyalty programs, both companies can cross-sell to millions of customers. Hornbuckle hopes this will be a major driver for future growth, as it brings over 180 million people directly into contact with MGM products. At the same time, the group is pushing for a license in New York, which could be granted in 2026 or shortly thereafter.

Why it matters for German players

For German gambling enthusiasts, the news of MGM's record revenues is primarily a signal of the stability of large, regulated providers. The State Treaty on Gambling 2021 (GlüStV 2021) in Germany has created clear rules that differ significantly from the markets in Las Vegas or Macau. While MGM attracts customers in the US with massive bonuses and huge resorts, strict player protection applies in Germany. Providers here must have a license from the Joint Gaming Authority of the Federal States (GGL) and be listed in the so-called whitelist. MGM is indirectly relevant for European players through its digital brands, but the focus is clearly on markets with specific regulations.

German players must adhere to the monthly deposit limit of 1,000 euros, which is monitored via the LUGAS system. In addition, the bet limit of 1 euro per spin applies to virtual slot machines. Such strict restrictions exist neither in Las Vegas nor in Asian gambling metropolises. Anyone who wants to play legally and safely in Germany should therefore always check whether a provider is on the GGL list. MGM shows with its success that regulated business can be lucrative worldwide, even if the German hurdles for international corporations are often perceived as very high due to the ban on autoplay and the 5.3 percent stake tax.

What it means for GGL-licensed casinos

MGM's record numbers could lead to other major players investing more in the German market, provided the GGL keeps the framework conditions attractive. Casinos with a German license are in direct competition with the giant marketing machines of US corporations. The success of MGM Digital proves that online gaming is no longer a niche market but an integral part of corporate balance sheets. For German providers, this means that technological innovation and a seamless user experience are crucial to surviving against international giants. Strict compliance with GGL requirements is the most important quality feature.