MGM says digital arm stays on profitability path despite Brazil setback and Q3 revenue of $4.2bn

MGM Resorts International leaders have told investors that the difficult position in Brazil "will not drag on forever", while insisting that MGM Digital will keep moving toward profitability whatever happens in that market.

The group reported quarterly revenue of $4.2bn and narrowed its year-on-year net loss by $268m to $17m. Consolidated adjusted EBITDA came to $403m. On the investor call, however, much of the discussion centred on BetMGM Brasil, the joint venture with media group Grupo Globo.

CEO Bill Hornbuckle said MGM Digital would stay on its path to profitability regardless of the Brazilian outcome. Gary Fritz, Chief Commercial Officer and President of MGM Digital, said the election result had surprised the company, as it had surprised everyone. After a provisional measure was introduced last month, MGM began contingency planning and was able to reduce some fixed costs in Brazil. He thanked the team in Sao Paulo for staying with the business. According to the Blask Index, BetMGM Brasil ranked as the 36th-largest operator in Brazil before President Luiz Inácio Lula da Silva curtailed the market last month.

Fritz said the company is watching what the Brazilian Congress and courts will do, and is planning for a range of scenarios as regulation takes shape. He praised Grupo Globo as a partner well placed to navigate the uncertainty.

Elsewhere, MGM Digital reported progress in Europe. The BetMGM brand delivered 8% B2C top-line growth, helped by strong results in Spain, the Netherlands and the UK. Across all MGM Digital operations, revenue rose 6% year on year from $174m to $184m, and the segment's adjusted EBITDAR loss narrowed to $4m from $23m.

In the United States, Hornbuckle restated the company's stance on prediction markets. He pointed to the Ninth Circuit Court's ruling against Kalshi, which classified sports event contracts as sports bets rather than federally regulated swaps. Quoting his reading of the opinion, he said it is disingenuous to deny that the contracts are sports bets, since everyone knows a sports bet when they see one. He added that MGM agrees and hopes the Supreme Court will review the case soon.