Categories: Technology

BetMGM cash reaches MGM as Strip earnings fall 12% and US iGaming growth slows

BetMGM paid MGM $34 million in distributions and brand license fees in the third quarter, while MGM's Las Vegas Strip earnings fell 12%. The online venture's profit rose 112%, but its iGaming growth trailed a slowing US market.

MGM Resorts’ third-quarter 2026 results, released October 28, showed its online partner becoming a source of cash as Las Vegas softened. MGM now receives both distributions and brand license fees from the venture. On the Strip, lower room rates hurt results.

BetMGM sent $68 million in total to its two owners, Entain and MGM, during the quarter. That sum combined $18 million in parent fees and $50 million in cash distributions. A year earlier, MGM had expected the payments to begin in the fourth quarter of 2025, with an initial payment of at least $100 million.

BetMGM profit jumps while its iGaming growth trails the market

BetMGM’s net revenue rose 7% to $710 million from $667 million. iGaming accounted for $483 million of that, up 6%. Online sports net revenue reached $216 million, up 7%. Profit grew faster than revenue, with nine-month adjusted EBITDA reaching $185 million.

BetMGM holds 14% of gross gaming revenue across its active markets, including 20% in iGaming and 8% in online sports betting. It kept its 2026 guidance of $2.9 billion to $3.1 billion in net revenue and $300 million to $350 million in adjusted EBITDA. However, it now expects results near the bottom of both ranges.

Its 6% iGaming gain lagged the wider market. US iGaming revenue grew 12% year over year in the third quarter, the slowest rate on record, according to Citizens JMP Securities. Growth had been 19% in the first quarter and 16% in the second. State results varied, with growth of 7% in Pennsylvania, 10% in New Jersey and 17% in Michigan.

Asset sale masks modest same-store gains in regional operations

Regional Operations revenue fell on a reported basis to $883.2 million from $956.9 million. The drop reflects the April 2026 sale of MGM Northfield Park’s operations for $546 million. Removing $83.7 million from sold properties leaves a prior-year same-store base of $873.2 million. Measured against that base, the regional business grew slightly.

MGM Digital, which includes LeoVegas but not BetMGM, grew revenue to $184 million from $174 million. Its segment adjusted EBITDAR loss narrowed to $4 million from $23 million. CEO Bill Hornbuckle said MGM’s digital businesses delivered strong revenue growth.

Taken together, the figures are consistent with digital operations offsetting part of the weakness on the Strip. The next test for the online market comes from DraftKings, which reports third-quarter results after the market closes on Thursday, November 5. Its conference call follows on Friday, November 6, at 8:30 a.m. ET.