CasinoBeats is breaking down the numbers behind some of the industry’s biggest stories. Our latest headline reflection features final Q2 figures from the UK’s gambling sector, updates from the UK budget and Q3 results from Caesars and MGM.
10%
The UK Gambling Commission has reported an online total gross gambling yield (GGY) increase of over 10% year-over-year for the country’s gambling market in the second quarter of 2024.
Slots GGY also increased by more than 15% in comparison to the same period last year, but the Commission did include the caveat that one operator has re-classified some of its products, impacting the data.
Publishing its Q2 data for the UK gambling market – July to September – the Commission noted that online operator GGY data, covering approximately 80% of the online gambling market, stood at £1.32bn, an 11% increase YoY.
However, the quarter’s figure was down on the £1.46bn reported during the Q1 data release earlier this year in August.
The number of total bets and/or spins increased by 12% YoY in Q2 to hit a new high for the third consecutive quarter of 25.2 billion. Meanwhile, the average monthly active accounts in the quarter increased by 8%.
Slots GGY hit a new high as well with £680m in the quarter, up 16% YoY, as the number of spins grew by 13% to 23.3 billion, while the average monthly active accounts rose by 16% to 4.4 million per month.
The number of online slots sessions lasting longer than an hour rose by 9% YoY to 10 million, while the average session length remained at 17 minutes.
Approximately 6.1% of all sessions lasted more than one hour (Q2 2023: 6.6%), but the number of spins per session and the GGY per session has fallen in comparison to the same quarter the previous year to 142 (2023: 147) and £4.13 (2023: £4.20) respectively.
$4.18bn
MGM Resorts International declared a record Q3 consolidated net revenue of $4.18bn across the third quarter of 2024, up 5% YoY (Q3 2023: $3.97bn).
Net income attributable to MGM Resorts in the quarter was $185m (2023: $161m), while consolidated adjusted EBITDAR stood at $1.1bn.
Revenue per segment, casino was $2.12bn (2023: $2.1bn), rooms stood at $883.6m (2023: $827.1m), food and beverage came in at $755.3m (2023: $698.3m) while entertainment, retail and other was $411.3m (2023: $385.7m). Reimbursed costs were $11.9m (2023: $11.6m).
Operations per location, Las Vegas Strip Resorts revenue increased by 1% YoY to $2.13bn (2023: $2.11bn) due to “an increase in non-gaming revenue, partially offset by a decrease in casino revenue”.
Vegas’ adjusted property EBITDAR increased by 2% YoY to $731m (2023: $714m) and included “approximately $37m of business interruption insurance proceeds related to the September 2023 cybersecurity issue”.
Net revenues for regional operations rose by 3% YoY to $952m (2023: $925m) primarily due to casino revenue increasing. Regional adjusted Property EBITDAR stood at $300m (2023: $293m) and included approximately $15m of business interruption insurance proceeds related to the aforementioned cybersecurity issue.
MGM China revenue grew by 14% YoY to a record $929m (2023: $813m) as operations benefited from the removal of COVID-19-related restrictions which occurred in Q1 2023. The segment’s adjusted property EBITDAR increased by 5% to a new high of $237m (2023: $226m).
Revenue from BetMGM – MGM Resorts’ online joint venture in the US with Entain – increased by nearly 20% YoY, which the operator says was “more than doubling the revenue growth” achieved in Q2.
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There was relief for UK gambling as previously no speculated tax rises for the industry were included in the 2024 budget.
Delivered by Chancellor Rachel Reeves, the budget was Labour’s first for almost 15 years and saw tax increases of £40bn as she sought to secure economic stability for the UK.
Reeves emphasised that it was essential for the government to take such drastic action, taking aim at the economy and a £22bn black-hole that her party inherited from its Conservative predecessors.
However, the plans drew significant criticism from opposition leader Rishi Sunak, who accused Labour of “fiddling the figures” and going back on manifesto promises.
Amidst much speculation however, there was relief for UK Gambling as it continues on a path of regulatory overhaul with the news that gross gaming yield bandings will be frozen from 1 April 2025 to 30 March 2026.
There were also plans announced for reform of remote gambling duty – aligning gambling offered over the internet, telephone, TV and radio into a single tax, in a bid to “close loopholes in the system”.
$2.87bn
Publishing its Q3 results, Caesars Entertainment reported a total revenue for the quarter of $2.87bn, down 2.6% YoY (Q3 2023: $2.99bn).
Revenue per segment, Las Vegas fell by 1.3% YoY to $1.06bn (2023: $1.12bn), Regional decreased by 7.6% to $1.45bn (2023: $1.57bn) and Caesars Digital increased by 40.9% to $303m (2023: $215m).
Elsewhere, Managed and Branded revenue declined by 30.6% YoY to $68m (2023: $98m) while Corporate and Other revenue fell to minus $5m (2023: minus $4m).
Looking at online operations closer, CEO Tom Reeg mentioned during Caesars’ Q3 earnings call that Caesars Digital increases were supported by icasino growing by 83% during the quarter.
Caesars’ net income came in at a loss of $9m (2023: $74m net income), while adjusted EBITDA stayed flat at $1bn.
Adjusted EBITDA per segment, Las Vegas fell by 2.1% YoY to $472m (2023: $482m), Regional declined by 13.4% to $498m (2023: $575m) and Caesars Digital came in at $52m (2023: $2m).
Reeg noted that Caesars Digital’s adjusted EBITDA was a new all-time quarterly record “driven by over 40% growth in net revenues”.
Managed and Branded adjusted EBITDA fell by 5% YoY to $19m (2023: $20m) while Corporate and Other adjusted EBITDA dropped by 11.1% to minus $40m (2023: minus $36m).
As of 30 September, Caesars had $12.7bn in aggregate principal debt outstanding. Total cash and cash equivalents were $802m, excluding restricted cash of $124m.
