MGM Digital Defies Brazilian Challenges and Focuses on European Growth

The gambling industry is closely watching the latest developments at MGM Resorts International. The group presented its third-quarter figures today, sending a clear message to investors. Despite the difficult situation in Brazil, where new regulatory measures have temporarily slowed the market, the company remains optimistic. MGM increased consolidated revenue to $4.2 billion and drastically reduced its net loss by $268 million compared to the previous year. Consolidated adjusted EBITDA stood at a solid $403 million.

A particular focus is on the MGM Digital division, which, according to leadership, remains on course for profitability. While the BetMGM Brasil joint venture with media giant Grupo Globo faces regulatory hurdles, the European business is shining. In countries such as Spain, the Netherlands, and the UK, the B2C business recorded growth of 8 percent. Overall, MGM Digital's revenue grew year-on-year from $174 million to $184 million, while its adjusted EBITDAR loss narrowed from $23 million to just $4 million.

Numbers and facts

The raw figures illustrate the strategic shift. Before the market restrictions imposed by President Luiz Inácio Lula da Silva, BetMGM Brasil was the 36th largest operator in the country according to the Blask Index. However, MGM CEO Bill Hornbuckle emphasized that the digital segment will become profitable regardless of the outcome in Brazil. Gary Fritz, Chief Commercial Officer of MGM Digital, admitted that the election results and subsequent measures came as a surprise. However, contingency plans were activated immediately and fixed costs were reduced.

“MGM Digital will continue on its path to profitability regardless of the outcome in Brazil.” - Bill Hornbuckle, President and CEO of MGM Resorts

Another interesting aspect of the quarterly figures is the clear stance on prediction markets in the US. Hornbuckle referred to Ninth Circuit Court rulings against Kalshi. He made it clear that contracts on sporting events are to be classified as sports bets and not as federally regulated swaps. This classification is of great importance for the industry as it solidifies the legal categorization of betting products.

Background

The situation in Brazil remains complex. The government there took provisional measures last month that present challenges for many providers. MGM is relying heavily on the expertise of its partner Grupo Globo. Fritz explained that they feel privileged to have a partner who can navigate the political and judicial noise in the country better than anyone else. They are currently preparing for a variety of different scenarios, depending on how the Brazilian Congress and the courts decide.

“I do want to thank our team in Sao Paulo for continuing to remain with the business, and for their perseverance during what is a challenging set of circumstances.” - Gary Fritz, CCO and President of MGM Digital

In Europe, on the other hand, investments in technology and brand awareness seem to be paying off. The 8 percent growth in the B2C sector highlights that established markets like the UK remain stable, while newer markets like the Netherlands are providing significant gains. This diversification protects the group from regional setbacks.

Why it matters for German players

For players in Germany, the development of MGM Digital is particularly interesting because it shows the consolidation of the global market. In Germany, very strict rules have applied since the State Treaty on Gambling 2021 (GlüStV 2021), which often serve as a model or a deterrent for other markets like Brazil. German customers who play at legal providers licensed by the Joint Gambling Authority of the States (GGL) benefit from a deposit limit of 1,000 euros per month and a stake limit of 1 euro per spin on slots. The connected LUGAS system ensures that these limits are maintained across all providers.

As major corporations like MGM expand their digital divisions worldwide, the pressure on the quality of platforms in regulated markets like Germany also increases. Those playing in this country should definitely look for the official GGL seal. Providers without a German license offer no protection through the OASIS exclusion system and are not legally secured. MGM shows that profitability is possible even in strictly regulated environments, provided the technological basis and partnerships are right.

What it means for GGL-licensed casinos

German GGL-licensed operators are monitoring such international shifts closely. When a giant like MGM grows in Europe, it means more competition for players' favor, which often leads to better bonus offers and more user-friendly apps. At the same time, the example of Brazil underlines how quickly political framework conditions can change. Thanks to the GGL whitelist, German providers have a level of planning certainty that is currently lacking in Brazil. This strengthens the German market as a stable anchor for international investors, despite the restrictive limits on stakes and deposits.