MGM Digital, the LeoVegas-led international arm of MGM Resorts, narrowed its adjusted EBITDAR loss to $4m in the third quarter, down from $23m a year earlier, even as revenue growth slowed sharply to 6%. The deceleration from 20% growth in the previous quarter lands as UK and European operators face a wave of new gambling taxes, raising questions about how much further the division can expand before tax and regulatory pressure caps its momentum.
What happened
MGM Resorts reported third-quarter 2026 results on 28 October, with consolidated revenue of $4.2 billion, a decrease of 1% compared to the prior year quarter. Group net loss narrowed substantially, with
net loss attributable to MGM Resorts of $17 million in the current quarter compared to net loss attributable to MGM Resorts of $285 million in the prior year quarter
.
Within that, MGM Digital posted
revenue of $184 million in the current quarter compared to $174 million in the prior year quarter, an increase of 6%
, while its
segment adjusted EBITDAR loss of $4 million in the current quarter compared to a loss of $23 million in the prior year quarter
. That compares with a far stronger second quarter, when
MGM Digital posted revenue of $196 million during 2Q26 compared [to] $164 million 2Q25, an increase of 20%
.
Growth in the latest quarter came mainly from Europe.
MGM Digital’s B2C revenue increased 8%, led by Spain, the Netherlands and the UK
, and
its proprietary platform generated more than 80% of UK online sports revenue following the August sports-betting launch
. Player numbers, however, moved in the opposite direction:
average monthly active users totaled 878,000, down 3% as the company focused on higher-value “premium mass” player engagement rather than customer acquisition volume
.
Why it matters
The narrower loss shows MGM Digital edging closer to sustainable profitability after years of investment behind LeoVegas’s international footprint. But the sharp drop in growth, from 20% to 6% quarter-on-quarter, suggests that expansion is becoming harder to sustain at the pace shareholders had been shown earlier in the year. Executives attributed the improvement to discipline rather than volume, with
MGM Digital increasing net revenue by 6%, or approximately $10 million, while improving EBITDAR by $19 million and narrowing its quarterly loss to $4 million
.
That trade-off between growth and margin matters because it is playing out against a backdrop of rising taxation across MGM Digital’s core European markets. The UK has just raised Machine Games Duty, the Netherlands recorded a shrinking regulated market in 2025, and Italy has confirmed a further €700m gambling tax take for 2027. Operators scaling back acquisition spend to protect margins, as MGM Digital appears to be doing by trimming active users while chasing premium players, points to an industry-wide recalibration of how growth is funded.
For affiliates and performance marketers, a shift from volume-driven acquisition toward premium-player targeting changes the commercial calculus. Operators pulling back on broad-based player acquisition are likely to favour partners who can deliver higher-value, better-qualified traffic rather than raw sign-up numbers, putting pressure on affiliate programmes built around bulk conversions. The growing share of MGM Digital’s UK sports revenue flowing through its own proprietary platform also signals less reliance on third-party channels for that segment specifically.
The bigger picture
MGM Digital’s slowdown fits a pattern already visible elsewhere in European online gambling this earnings season. Evolution returned to growth in the third quarter partly on the back of Brazil, while Evoke reported falling UK revenue alongside store closures, underlining how unevenly the region’s operators are weathering tax and regulatory headwinds. MGM’s own commentary pointed to LeoVegas and BetMGM eventually self-funding expansion into Brazil, a market MGM Resorts continues to pursue even as domestic talks over other strategic options, including with People Inc, have ended.
Across MGM Resorts as a whole, the quarter showed a similar split between resilience and pressure:
MGM China revenue increased 5% year-on-year to $1.1 billion
, a record for the segment, while
the company posted a 2% year-on-year decline in revenue from its Las Vegas Strip operations to $1.95 billion, as falling room rates offset stronger casino results
. With UK gambling duties rising further under the terms outlined in the Machine Games Duty increase, MGM Digital’s next quarters will show whether its pivot toward premium players and proprietary platforms can keep margins improving without growth stalling further.
Sources
- CasinoBeats – MGM Digital cuts loss to $4m as LeoVegas-led arm’s revenue growth slows to 6%
- Yogonet – MGM Resorts reports 1% revenue decline in Q3 as Las Vegas Strip results weaken
- TradingKey – MGM Resorts International Q3 2026 Earnings Call: BetMGM Profit Growth, Macau Records and Las Vegas ADR Pressure
- PR Newswire – MGM Resorts International Reports Third Quarter 2026 Financial and Operating Results
- Gambling News – Digital Growth and Las Vegas Performance Drive MGM’s Strong Q2 Results
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