CasinoBeats has analyzed key figures from the gambling industry, highlighting recent developments in the UK market, along with third-quarter results from major players such as Caesars and MGM Resorts.
The UK Gambling Commission reported a significant year-over-year increase of more than 10% in online total gross gambling yield (GGY) for the second quarter of 2024. Slots GGY surged by over 15% compared to the same period last year, although the Commission noted that one operator's reclassification of products affected the overall data.
In its Q2 data covering July to September, the Commission revealed that online GGY reached £1.32 billion, marking an 11% increase from the previous year. This figure was, however, lower than the £1.46 billion recorded in the Q1 data released in August.
During the quarter, the total number of bets and spins rose by 12% year-over-year, achieving a record high of 25.2 billion for the third consecutive quarter. Additionally, there was an 8% increase in the average monthly active accounts.
Online slots GGY reached a peak of £680 million in Q2, a 16% increase year-over-year, with spins rising by 13% to 23.3 billion. The average monthly active accounts rose by 16% to 4.4 million. Sessions lasting longer than an hour increased by 9% to 10 million, while the average session length remained stable at 17 minutes. Approximately 6.1% of all sessions lasted over one hour, slightly down from 6.6% in Q2 2023. Both spins per session and GGY per session, however, saw declines, with figures falling to 142 and £4.13, respectively.
MGM Resorts International reported an unprecedented consolidated net revenue of $4.18 billion for Q3 2024, reflecting a 5% year-over-year increase from $3.97 billion in Q3 2023. The company's net income rose to $185 million, compared to $161 million during the same period last year, and consolidated adjusted EBITDAR reached $1.1 billion.
Breaking down revenue by segments, casino revenue was $2.12 billion, up from $2.1 billion in 2023. Revenue from rooms climbed to $883.6 million, compared to $827.1 million the previous year, and food and beverage revenue increased to $755.3 million from $698.3 million. Revenue from entertainment, retail, and other sources was $411.3 million, up from $385.7 million. Reimbursed costs totaled $11.9 million.
Revenue from MGM's Las Vegas Strip resorts increased by 1% to $2.13 billion, attributed to a rise in non-gaming revenue despite a decrease in casino earnings. Adjusted property EBITDAR for Las Vegas rose by 2% to $731 million. Regional operations also saw a 3% year-over-year revenue increase, reaching $952 million, primarily due to a boost in casino revenue. MGM's operations in China achieved record revenue of $929 million, a 14% increase year-over-year, benefiting from the easing of COVID-19 restrictions.
In contrast, Caesars Entertainment reported total Q3 revenue of $2.87 billion, down 2.6% from $2.99 billion in Q3 2023. In terms of revenue per segment, Las Vegas revenue decreased by 1.3% to $1.06 billion, with regional revenue dropping by 7.6% to $1.45 billion. However, Caesars Digital saw a remarkable 40.9% increase to $303 million in revenue.
Caesars experienced a net loss of $9 million, contrasting with a net income of $74 million in the previous year. Adjusted EBITDA remained unchanged at $1 billion. While Las Vegas adjusted EBITDA fell by 2.1% to $472 million, regional adjusted EBITDA dropped by 13.4% to $498 million. Caesars Digital reported adjusted EBITDA of $52 million, an all-time quarterly record, with support from a growth of 83% in its iCasino segment.
As of September 30, Caesars held $12.7 billion in aggregate principal debt, with total cash and equivalents at $802 million, excluding restricted cash of $124 million.
In budget news, UK gambling operators were relieved as the 2024 budget announced by Chancellor Rachel Reeves did not include anticipated tax hikes for the industry. This budget marked Labour's first financial plan in almost 15 years, featuring £40 billion in tax increases aimed at stabilizing the UK economy, which had faced a £22 billion deficit.
Despite facing criticism from opposition leader Rishi Sunak, who accused the Labour party of misrepresenting figures, the budget was seen as a significant move in the ongoing regulatory transformation in the gambling sector. Notably, gross gaming yield bandings will be frozen from April 1, 2025 to March 30, 2026, and plans were revealed to reform remote gambling duties to unify taxation across various platforms, addressing existing loopholes.
