MGM Resorts Reports Soft Q3 as Vegas Weakness Persists

MGM Resorts reported a challenging third quarter, with softer Las Vegas results weighing on earnings and a major withdrawal from the New York casino race reshaping its near-term strategy. The company’s focus now turns toward its overseas developments, most notably its $8.9 billion integrated resort in Osaka, Japan.

Good to Know

• MGM reported Q3 net revenue of $4.3 billion, up slightly from forecasts
• Las Vegas earnings fell due to lower visitation and weaker table hold
• MGM withdrew from the New York casino race, recording $349 million in write-offs

So, How Did MGM Perform in the Third Quarter?

For the three months ended September 30, MGM generated $4.3 billion in net revenue, narrowly exceeding Wall Street expectations of $4.2 billion. Earnings per share came in at $0.24, down sharply from $0.54 a year earlier.

Despite topping revenue forecasts for the fourth consecutive quarter, the company’s Adjusted EBITDAR fell across several key segments. MGM’s Las Vegas Strip operations brought in $2 billion in revenue, down from $2.1 billion in the same quarter of 2024, while Adjusted EBITDAR in that segment dropped to $601 million from $731 million.

MGM cited several headwinds, including a drop in international visitors, Spirit Airlines’ bankruptcy, and traffic congestion from Southern California. Table win percentage declined from 23.7% to 22.6%, while lower food and beverage sales and reduced room revenue per available room (RevPAR) also hurt results.

What’s Behind the Las Vegas Slowdown?

Tourism data from the Las Vegas Convention and Visitors Authority showed an 8.8% year-over-year decline in Strip visitation in September, marking the ninth straight month of decreased volume. With macroeconomic uncertainty dampening discretionary spending, major operators like MGM and Caesars have struggled to maintain high occupancy levels.

Caesars reported occupancy around 92%, down 5% from the previous quarter, and noted weak table handle performance. MGM faced similar challenges, compounded by room renovations at the MGM Grand that temporarily reduced available inventory.

Why Did MGM Exit the New York Casino Bid?

MGM’s decision to pull out of the New York downstate casino bidding process surprised many in the industry. The company’s Yonkers-based Empire City property was once viewed as a frontrunner for one of the state’s limited full casino licenses.

However, the withdrawal followed changes in state licensing guidance that reduced potential licence durations from 30 years to 15, altering the expected return on investment. MGM also faced competition from Resorts World NYC, which proposed higher tax rates—56% for slots and 30% for table games—compared to MGM’s anticipated minimums of 25% and 10%.

As a result, MGM recorded a $256 million non-cash goodwill impairment charge and $93 million in related write-offs connected to its Empire City property.

Where Is MGM Focusing Its Growth Now?

With New York off the table, MGM is channeling resources into international growth, particularly its MGM Osaka resort, slated to open in 2030. The project remains a cornerstone of MGM’s global expansion strategy and drew strong attention at Expo 2025 Osaka.

To fund the development, MGM secured a $300 million credit facility, which can be expanded to $450 million, at a 2.5% interest rate. The financing supports MGM’s share of the Osaka investment, which is expected to become Japan’s first integrated resort.

How Did the Market React?

Following the Q3 announcement, MGM shares dropped 8% in after-hours trading to $28.70, before rebounding slightly to around $31 the following day. The stock remains down more than 10% year-to-date.

Company leadership maintained optimism about long-term performance, pointing to cost improvements and untapped value within BetMGM, the company’s online betting joint venture. CEO Bill Hornbuckle noted that efficiency improvements in Las Vegas could help unlock shareholder value going forward.

“We have a better cost structure than we’ve ever had in Las Vegas,” Hornbuckle said. “With the dynamism in this market, I think that that’s an unlock for the stock.”

FAQ

How much did MGM earn in Q3 2025?

MGM reported $4.3 billion in net revenue and $0.24 earnings per share, missing profit expectations but topping revenue forecasts.

Why did MGM leave the New York casino race?

Regulatory changes shortened license terms and altered expected returns, leading MGM to withdraw and record $349 million in related write-offs.

What hurt MGM’s Las Vegas results?

Lower tourism, reduced table hold, and room renovations at the MGM Grand contributed to weaker performance.

What is MGM focusing on now?

The company is prioritizing international expansion, particularly the MGM Osaka integrated resort in Japan, set to open in 2030.

How did investors react to MGM’s results?

Shares fell after earnings but recovered slightly, with executives expressing confidence in long-term fundamentals and BetMGM’s value.

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