MGM Resorts Sees Growth in Sports Betting Revenue Amid Share Buybacks

MGM Resorts International has reported promising financial results for the third quarter, marking a period of strong growth for its sports betting arm, BetMGM.

The company credits its burgeoning revenue streams to both its MGM China operations and the performance of its properties on the Las Vegas Strip.

Record Financial Performance

Diving into the specifics, MGM posted a consolidated net revenue of $4.2 billion for the quarter, reflecting a 5% increase compared to the same period last year. Nevertheless, adjusted earnings per share dipped slightly to 54 cents from 64 cents.

Strip operations did see a positive shift, with revenue increasing by 1% to $2.1 billion, and adjusted EBITDAR rising to $731 million, indicating strong operational health.

BetMGM’s Rising Popularity

BetMGM, a collaboration with Entain Plc, showed outstanding improvement, with revenues nearly 20% higher than last year’s third quarter, reflecting the growing appeal of sports betting across the United States. This growth is impressive considering the competitive landscape dominated by FanDuel and DraftKings.

iGaming, in particular, presents a significant opportunity for growth as more states expand their regulations to permit online gambling.

Share Buybacks and Financial Strategy

MGM Resorts continues to implement its share repurchase strategy, having returned over $300 million to shareholders in this last financial quarter. Cumulatively, the company has repurchased shares totaling around $1.3 billion year-to-date, leading to a 40% reduction in shares outstanding since 2021.

The third quarter concluded with a solid free cash flow of $944 million, positioning MGM favorably for continued buybacks and future investments.

Conclusion

MGM Resorts’ robust financial performance and rising BetMGM revenues signal a positive trajectory in the gaming industry, reinforced by strategic share buybacks that enhance shareholder value and confidence in the brand.