In the thick of the ongoing transformation that the gaming industry is experiencing, MGM Resorts has proved that traditional casinos and online gaming platforms are all capable of coexisting successfully. The company’s most recent financial performance highlights the robustness of traditional casinos while pointing to notable development in the online business, despite market upheavals and the quick rise of online gaming.
Rather than facing competition between its physical and online businesses, MGM’s approach has allowed both to thrive simultaneously, catering to distinct yet complementary segments of the gambling market. Seemingly, it is paying off.
Regional and Las Vegas Casinos Maintain Stability
MGM’s regional operations, which include major properties like Borgata in Atlantic City and MGM Grand in Detroit, continued to perform well. In Q4 2024, regional casino revenue increased by 7%, reaching $932 million, while profitability, measured by Segment Adjusted EBITDAR, grew by 21% to $281 million. These gains were driven by stronger casino revenues and a recovery from prior disruptions, such as the MGM Grand Detroit labor strike in 2023.
Meanwhile, the Las Vegas Strip Resorts experienced slight fluctuations, earning $2.2 billion in Q4 2024, a 6% decline compared to the previous year. This decrease was largely due to the absence of major events like the 2023 Formula 1 race, which had boosted revenues in the prior period. Despite this quarterly dip, full-year Strip revenues remained stable at $8.8 billion, proving the enduring appeal of MGM’s flagship casino destinations.
MGM Digital’s Rapid Expansion
While physical casinos held steady, MGM’s digital operations experienced substantial growth. Revenue for MGM Digital reached $140 million in the fourth quarter of 2024, up 15% year over year. As a result of the company’s growing influence in online marketplaces, digital revenue increased by 28% to $552 million for the year.
Although there was an increase in sales, the Segment Adjusted EBITDAR losses were slightly more than before, going from $20 million to $22 million. Nevertheless, MGM continues to have a positive outlook on the future of its online ventures. In 2025, BetMGM in North America projects to attain profitability while the MGM Digital segment as a whole is continuing to expand within a $41 billion market potential.
A Unified Future?
The overall achievement of MGM Resorts is reflective of a broader trend in the gambling industry: online gambling is boosting the market rather than displacing brick-and-mortar establishments. Even though there are many online casinos, the immersive, in-person experiences offered by brick-and-mortar establishments are still much sought after.
Commercial gaming income in the United States has broken records for four years running, demonstrating that the two industries can thrive independently of one another. For MGM, internet gaming is not a threat but an opportunity to enhance its land-based operations and provide players with more variety in their gaming experiences. Strategic investments in both online and offline gaming are shaping a future where the two industries thrive together, providing gamers with an unmatched variety of gambling experiences.
