MGM Resorts released its third-quarter report. It showed that MGM casinos reported losses of half a billion dollars. However, the casino operator is optimistic that it would recover soon. On Thursday, MGM reported revenue of $1.12 billion in the quarter ending September 30.
The revenue dropped by two-thirds compared to the same period last year. The casino operator reported an operating loss of $495 million and a net loss of $535 million compared to $37 million losses in the same quarter in 2019.
In 2019, MGM Resorts’ third-quarter losses were due to non-cash impairment involving real estate sales belonging to its Vegas casinos. This year, the losses were due to the coronavirus pandemic.
MGM Casinos Reported Losses
In Las Vegas, MGM Resorts’ revenue dropped by 68 percent year over year based on bookie pay per head reports. Its revenue was $481 million in the quarter. Also, its earnings before paying rent to its landlord dropped by 97 percent to $15 million.
According to PPH sportsbook software sources, lower earnings were due to the casinos’ struggles during the pandemic. Casinos had to limit their capacities to prevent the spread of the coronavirus.
Slots and table game handle dropped by 41 percent. Also, hotel occupancy was down to 44 percent. According to sports betting software reviews and news sites, MGM US regional operations got better results even though their revenue was down.
Regional US operations’ revenue dropped by 40 percent to $557 million. Their earnings fell 46 percent to $146 million due to lower handle in both slots and table games. At present, all MGM properties in the United States have already reopened at a limited capacity.
The good news is that BetMGM is on track to earn between $150 million to $200 million this year. The app is available in four states and has a combined market share of 8.7 percent in September.