MGM executives maintained a positive view about Las Vegas’ long-term potential despite a second consecutive quarter of declining year-over-year financial results.
Key Takeaways
- Loss in room revenue: Vegas visitation concerns continue, as MGM saw room revenue decline by 11% in Q3.
- Drop in casino revenue at Strip resorts: MGM saw casino revenue drop by 5% in Q3.
- Strong start to Q4: MGM CEO sees "stabilization" in the fourth quarter and rising demand for live entertainment.
MGM announced drops in most key financial metrics in its third-quarter earnings released Wednesday, coming off of similar declines in the year’s second quarter. Despite the revenue decreases, most of which are tied to larger trends of slowing Las Vegas visitation, MGM officials remain publicly bullish on the city, the company’s highest-grossing market.
At industry conferences, as well as Wednesday’s earnings call, MGM’s top officials said they believe Vegas will remain a long-term epicenter of entertainment. CEO Bill Hornbuckle said the company is are already undergoing positive trends in the year’s fourth quarter, boosted by strong convention attendance and interest in the upcoming Formula One race.
"We see stabilization in the fourth quarter and growth in 2026 and beyond," Hornbuckle said. "And over the long run, we see a measured supply outlook, a growing local population, expanding entertainment infrastructure, rising demand for live entertainment and for luxury, and we remain very bullish on Las Vegas."
Key Las Vegas financial metrics
MGM’s net revenue from its Las Vegas properties declined 7% from Q3 2024 to Q3 2025, dropping from $2.1 billion to $2 billion. This led to a segment-adjusted EBITDAR decline of $130 million to $601 million during that same time, an 18% year-over-year drop.
Casino revenue between the two quarters decreased from $476 million to $450 million, falling 5%. Table game win decreased 6%, from $328 million to $309 million, compounded by a table game win percentage decline from 23.7% to $22.6%.
A bright spot from MGM’s Las Vegas gaming revenue was a 4% year-over-year increase in slot handle and 3% gain slot win, even as the company’s slot win percentage stayed the same between the two quarters.
This was compounded by even steeper drops in the company’s key hotel metrics.
Las Vegas — Hotel Metrics (Q3 2025 vs Q3 2024)
Room revenue declined 11%, dropping from $743 million in Q3 2024 to $660 million in Q3 2025. Average daily rate dropped 3%, from $243 to $236, while revenue per available room fell 8%, from $229 to $210. Occupancy fell five percentage points, from 94% to 89% during the same periods.
The company attributed some of the Las Vegas financial declines to a massive remodel of MGM Grand, the company’s largest property by number of rooms. Officials said the updated rooms are already sparking a stronger fourth quarter.
But the macro-level Las Vegas visitation declines hit MGM in the third quarter like it had its major Strip competitors. MGM said revenue declines could also be attributed partly to fewer room nights, leading to less spending on food and beverage, which was further exacerbated by a stronger-than-usual run by bettors at MGM properties’ table games.
MGM generates more revenue from Las Vegas than it does all its other U.S. and China properties combined. Las Vegas becomes even more important for the company as it continues to focus on fewer, high-end properties.
MGM stunned many industry observers by withdrawing from a casino bid outside New York City just months before the license was to be awarded. The same day, the company announced it had sold operations of its MGM Northfield Park gaming property in Ohio.
The Las Vegas declines have increasingly come as an outlier for the company overall.
MGM’s regional casinos, as well as its two Chinese properties, both saw year-over-year gains between Q3 2024 and Q3 2025, the company announced during Wednesday’s earnings release. This follows strong growth from BetMGM in both the U.S. and internationally.
