MGM Resorts: A Look at Last Year's Performance and What Lies Ahead

Global hospitality and entertainment titan MGM Resorts International recently pulled back the curtain on its financial performance for the final quarter and full fiscal year of 2025. The results underscore a company navigating a complex global landscape with a strategy that emphasizes both established strongholds and ambitious future projects. While some segments faced headwinds, others delivered exceptional growth, painting a picture of a diversified enterprise poised for continued evolution.

A Broader View: Fiscal Year 2025 Highlights

Looking at the entire year, MGM Resorts reported consolidated net revenues of $17.5 billion, a modest 2% bump compared to 2024. Delving deeper, the net income attributable to MGM Resorts saw a decrease, landing at $206 million, down from $747 million in the previous year. However, the company’s consolidated adjusted EBITDA for 2025 demonstrated resilience, increasing by 1% year-on-year to reach $2.4 billion. Diluted earnings per share for the year were $0.76, a decrease from $2.40 in 2024, but adjusted EPS told a more positive story at $3.31, up from $2.59 in the prior year.

These annual figures reflect a period of both challenges and strategic successes across MGM’s expansive portfolio. The company’s leadership pointed to a diversified operational approach as key to weathering market shifts and positioning for long-term value creation.

Quarterly Momentum: A Strong Finish to 2025

The final quarter of 2025 proved particularly strong for MGM Resorts. Consolidated net revenues hit $4.6 billion, marking a healthy 6% increase from Q4 2024. The net income attributable to MGM Resorts nearly doubled to $294 million, a significant jump from $157 million in the same period last year. Consolidated adjusted EBITDA also saw impressive growth, rising 20% to $635 million from $528 million in Q4 2024. Diluted earnings per share for the quarter were $1.11, more than double the $0.52 reported in Q4 2024, and adjusted diluted EPS stood at $1.60, a substantial increase from $0.45 in the prior year quarter.

This robust quarterly performance suggests that several strategic initiatives began to bear fruit towards the end of the year, providing a strong springboard into 2026.

Geographic Performance: A Tale of Varied Landscapes

MGM Resorts operates across distinct geographical markets, each with its own dynamics and regulatory frameworks. The latest results highlight these variations:

The Enduring Allure of the Las Vegas Strip

While the Las Vegas Strip remains an iconic global entertainment destination and a core asset for MGM, its performance showed a slight dip. Q4 2025 net revenues for the Strip segment were $2.2 billion, a 3% decrease, with adjusted EBITDAR also softening by 4% to $735 million. For the full year, the Strip’s annual revenues decreased by 4% to $8.4 billion, and its adjusted EBITDAR fell by 8% to $2.9 billion.

This slight contraction in Las Vegas for 2025 can be attributed to several factors, including ongoing renovations at properties like the MGM Grand, which impacted room availability and EBITDA by approximately $65 million during the year. Despite this, MGM’s leadership expressed confidence in a rebound for 2026, driven by a solid foundation of group and convention bookings and a packed calendar of major events. In fact, properties like Bellagio and ARIA actually saw a 7% increase in EBITDAR during 2025, indicating strength in the luxury segment. Forecasts for Las Vegas tourism anticipate a rebound in 2026, with an emphasis on professional sports and value offerings, along with a robust schedule of meetings and conventions. Las Vegas is projected to be the top meeting destination in 2026, surpassing other major cities.

Steady Growth in Regional Operations

MGM’s regional operations across the United States continued to provide a reliable revenue stream. In Q4 2025, net revenues grew 2% year-on-year to $950 million, with segment adjusted EBITDAR largely consistent at $280 million. Annually, regional operations recorded net revenues of $3.8 billion, a 1% increase, and segment adjusted EBITDAR of $1.2 billion, up 2% from 2024. This consistent performance, including record slot win figures, highlights the enduring appeal and stability of these properties in their respective local markets.

MGM China’s Remarkable Resurgence

Perhaps the most compelling story comes from MGM China, which saw stellar double-digit growth. In Q4 2025, net revenues surged 21% to $1.2 billion from $1 billion in Q4 2024, with adjusted EBITDAR increasing 30% to $332 million. For the full year, MGM China’s net revenues grew 11% to $4.5 billion, and segment adjusted EBITDAR also rose 11% to $1.2 billion.

This impressive recovery reflects Macau’s broader rebound in 2025, with the city welcoming approximately 40 million visitors and achieving a gross gaming revenue (GGR) of around MOP247 billion, which is about 85% of its 2019 levels. MGM China, specifically, achieved a record-high market share of 16.1% for the full year, further solidifying its position, particularly in the premium mass market. The renewed gaming concessions in Macau, along with ongoing diversification efforts by operators, have laid a foundation for sustained growth in the region, focusing on a broader range of tourism and entertainment offerings. MGM China’s properties, MGM COTAI and MGM MACAU, played crucial roles in this success, with the former boasting a 10.1% market share and the latter 6.0%.

The Digital Ascent: BetMGM and the Online Frontier

MGM Digital, encompassing entities like LeoVegas and excluding the BetMGM North America venture, reported net revenue growth of 35% to $188 million in Q4 2025, up from $140 million in Q4 2024. The segment also significantly improved its adjusted EBITDAR loss to just $7 million, a notable turnaround from a $22 million loss in the prior year quarter. For the full year, MGM Digital’s net revenues increased by 19% to $1.2 billion, though it still reported an adjusted EBITDAR loss of $90 million, an increase from a $77 million loss in 2024.

The jewel in MGM’s digital crown, BetMGM, its 50/50 joint venture with Entain, had a record-breaking 2025. BetMGM’s full-year net revenue reached $2.8 billion, a significant 33% increase over 2024. Crucially, BetMGM swung to positive adjusted EBITDA of $220 million, a substantial improvement from a $244 million loss in the prior year. This positive shift is a major milestone for the venture, signaling a move towards sustainable profitability in the competitive U.S. online gambling market. The venture even distributed $135 million to MGM Resorts during Q4 2025.

BetMGM finished 2025 with a 13% gross gaming revenue market share across its active jurisdictions, holding a leading 21% share in iGaming and an 8% share in online sports betting. The company attributed this success to a refined player engagement strategy, enhanced product offerings, and effective marketing. The online sports betting segment, in particular, saw impressive growth, with revenue surging 63% year-over-year. The ongoing expansion of legalized sports betting and iGaming across U.S. states, combined with BetMGM’s omnichannel advantage linked to MGM’s physical properties, positions it for continued growth. The company anticipates achieving $300 to $350 million in adjusted EBITDA in 2026 and aims for $500 million in 2027.

The broader online gaming industry is seeing remarkable innovation, with mobile platforms, artificial intelligence, and blockchain technology reshaping how players engage and how operators manage their businesses. As the industry evolves, even more niche segments like crypto gambling are finding their footing, offering decentralized betting experiences.

Strategic Investments and Future Horizons

MGM’s leadership expressed significant optimism for 2026, underpinned by a solid business foundation and several key growth initiatives. CEO Bill Hornbuckle highlighted the completion of MGM Grand renovations in Las Vegas, sustained strong performance from regional operations, continued leadership in premium mass gaming at MGM China, and the promising outlook for BetMGM.

The Vision for Osaka

A cornerstone of MGM’s international expansion strategy is the MGM Osaka integrated resort in Japan. This ambitious project, a collaboration between MGM Resorts and Orix Corporation, officially broke ground in April 2025 and is projected to open around 2030. Located on the artificial island of Yumeshima in Osaka Bay, the estimated $8.07 billion to $10 billion development is set to be Japan’s first integrated resort featuring a casino. The resort will house 2,500 guest rooms across three distinct hotels, offering extensive convention facilities spanning 730,000 square feet, a 3,500-seat theater, and a diverse range of retail and dining options.

Japan’s Integrated Resort Implementation Act, which passed in 2018, sets the regulatory framework for these developments. The legislation allows for a limited number of IR licenses, with stringent rules including a casino space cap at 3% of the total floor area and an entrance fee of ¥6,000 for Japanese nationals and residents, alongside a limit of 10 visits per month, designed to address problem gambling concerns. The Osaka project is envisioned not merely as a gaming destination but as a multi-sector economic anchor for the Kansai region, aiming to boost both domestic and international tourism. ORIX, MGM’s partner, sees the IR as a catalyst for regional revitalization.

Returning Value to Shareholders

MGM Resorts also remained committed to enhancing shareholder value through its repurchase program. In Q4 2025, the company repurchased 15 million shares of its common stock for $516 million, retiring all shares bought back. As of December 31, 2025, there was an additional $1.6 billion authorized for share repurchases, demonstrating ongoing confidence in the company’s financial health and future prospects.

CFO Jonathan Halkyard noted that 2025 involved important financial stewardship initiatives, including securing favorable debt capital for MGM Osaka and generating distributions from both BetMGM and MGM China. These initiatives, he explained, arm MGM with the financial capacity to pursue further growth and deliver substantial value to its shareholders.

Broader Industry Context and Technological Shifts

The global gaming and hospitality sector is in constant motion, driven by consumer preferences, regulatory changes, and technological leaps. The shift towards online platforms, particularly in sports betting and iGaming, has redefined accessibility and player engagement. This trend has been amplified by innovations like mobile gaming, allowing players to access a vast array of entertainment from anywhere. Technological advancements are profoundly shaping the casino industry.

Artificial intelligence (AI) is playing an increasingly vital role, from personalizing marketing efforts and optimizing loyalty programs to enhancing fraud detection and streamlining operations. Predictive analytics, machine learning, and AI-driven guest engagement systems are becoming standard tools for operators aiming to improve efficiency and tailor experiences. Beyond AI, immersive technologies like virtual reality (VR) are beginning to offer novel gaming experiences, while robust cloud infrastructures support the vast data processing demands of modern online platforms. These innovations collectively contribute to a more interactive, secure, and customized environment for players, pushing the boundaries of traditional gambling entertainment.