# BetMGM Cash Flow Supports MGM Amidst Las Vegas Strip Earnings Decline MGM Resorts offsets 12% Strip earnings drop with increased distributions from its online venture. - **Source:** [ReadWrite](https://brifing.si/source/7a996b61-bc09-4e57-8483-78f2ad9dd914) - **Published:** 2026-11-01 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/90ce8fa4-0645-49da-8e8c-3e18551cf366 ## Financial Shift to Digital MGM Resorts reported a 12% decline in Las Vegas Strip earnings during the third quarter of 2026. To mitigate this downturn, the company increasingly relied on cash distributions and brand license fees from its online venture, BetMGM. This transition highlights a strategic pivot toward digital revenue streams during periods of physical market weakness. ## BetMGM Profitability Metrics BetMGM delivered $34 million to MGM in the third quarter, part of a $68 million total payout to its owners. While the venture's profit surged by 112%, its net revenue grew by only 7% to $710 million. Adjusted EBITDA for the first nine months of 2026 reached a notable $185 million total. ## iGaming Market Deceleration BetMGM's 6% iGaming revenue growth significantly trailed the broader US market, which expanded by 12% year over year. This represents the slowest growth rate on record for the sector. Quarterly performance varied by state, with Michigan leading at 17% growth, while New Jersey and Pennsylvania recorded 10% and 7% increases respectively. ## Regional Operations Impact Regional operations revenue fell to $883.2 million, primarily due to the $546 million sale of MGM Northfield Park in April 2026. When adjusting for the removal of sold properties, the regional business showed modest growth. This divestment strategy reflects MGM's ongoing efforts to streamline its physical asset portfolio amid changing market conditions. ## Digital Segment Performance MGM Digital, encompassing LeoVegas but excluding BetMGM, reported revenue growth to $184 million from $174 million. The segment successfully narrowed its adjusted EBITDAR loss to $4 million, down from $23 million in the previous year. CEO Bill Hornbuckle emphasized that these digital businesses are effectively offsetting weakness observed within traditional Strip operations. ## Guidance and Market Outlook BetMGM maintained its 2026 guidance, projecting net revenue between $2.9 billion and $3.1 billion. However, the company now expects results to land near the bottom of these ranges. With a 14% share of gross gaming revenue across active markets, the venture faces pressure to improve its competitive position against wider industry trends. ## Historical Payment Context The cash distributions received by MGM were accelerated compared to initial expectations. A year earlier, the company anticipated that payments would commence in the fourth quarter of 2025 with an initial sum of at least $100 million. The current structure now includes both parent fees and direct cash distributions to the owners. ## Upcoming Industry Indicators The next significant test for the online gaming sector arrives on November 5, 2026, when DraftKings reports its third-quarter results. Analysts are closely watching these figures to determine if the broader market slowdown is systemic. A conference call scheduled for November 6 will provide further clarity on the competitive landscape for major operators. ## Sources covering this story - https://readwrite.com/betmgm-cash-reaches-mgm-as-strip-earnings-fall-12-and-us-igaming-growth-slows/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._