MGM Resorts International expects big things from its operations in Europe in 2027, with profits used to fund its investment plans in other global markets.
The Las Vegas-based multinational reported its Q2 earnings this week, following an update on operations of the US-facing joint venture BetMGM joint venture with UK firm Entain.
For group-wide operations, including business across several nations, revenue remained steady, growing 1% year-over-year to $4.5bn (£3.36bn), while profit came in at $292m.
However, adjusted EBITDA dropped from $648m to $610m, with an increase in expenses a possible culprit. At the MGM China division, branding licence fee express increased by $21m against Q2 2025, for example.
Regardless, MGM is confident after seeing a bounceback on the Las Vegas strip, its home turf. The heartland of American gambling has seen falling visitor numbers in recent years, down 7.5% in February this year according to Reuters.
This didn’t seem to faze MGM Resorts, which reported its consecutive quarter of year-over-year revenue growth for its Las Vegas Strip Resorts division.
As mentioned above, however, MGM’s reach goes far beyond the state of Nevada. The company massively expanded its reach in Europe by acquiring LeoVegas in 2022.
The Swedish iGaming multinational has subsequently become the platform behind the BetMGM sportsbook in Europe, active in the UK, Ireland, the Netherlands, Sweden and Denmark.
“That business is setting up … in 2027, for significant operating leverage, and likely substantial levels of profitability,” said Gary Fritz, MGM Resorts’ Chief Commercial Officer and President, commenting on LeoVegas’ European activity during an investor webcast.
“We can use that to, at our discretion, finance the remaining growth investments in our portfolio, which are largely dominated by Brazil, in terms of what we have line of sight on.
“We do think there will be the ability to self-fund, in part, the ongoing investments in Brazil and a few other geographies around the world.”
BetMGM takes on Brazil
BetMGM launched in Brazil back in 2024 via a joint venture with Grupo Globo, one of the country’s biggest media outlets. As in Europe, BetMGM’s Brazil operation is run via LeoVegas, using the company’s Tiger sportsbook platform.
The Brazilian market is going through a tough period, however – maybe not financially, with 2025 gross gaming revenues (GGR) coming in at R$37bn (£5bn), but certainly politically.
President Lula da Silva, who has described himself as “no friend” of the industry, has become increasingly hostile to it over the past year. Taxes on GGR are also set to increase from 12% to 15% by 2027 and to 18% by 2028.
Regardless of these challenges, MGM Resorts still clearly sees growthFR$ potential in Brazil, and if its CCO’s comments are anything to go by, it is prepared to use profits made in Europe to pay for expansion in South America’s largest nation.
On top of this, the firm is also keeping a close eye on Asian prospects, with construction underway on a huge Japanese resort, MGM Osaka.
Bill Hornbuckel, MGM’s President and Chief Executive Officer, remarked that Q2 had demonstrated “the strength of our diversified portfolio with record second quarter consolidated revenue”.
