MGM Digital president and chief commercial officer (CCO) Gary Fritz has said the company is set up to break even in 2027, while noting there are no plans for M&A in the immediate future.
MGM Digital comprises LeoVegas Group and its brands, including BetMGM outside of the US. It is live in 11 markets across Europe, Canada and Latam.
On MGM Resorts International’s Q1 2026 earnings call on Wednesday, 29 April, John DeCree of CBRE Capital Advisors asked Fritz about the firm’s timeline to be profitable.
Last October, group CEO Bill Hornbuckle said MGM Digital could deliver $1bn in revenue and double-digit EBITDA margins.
In response, the president and CCO said that as the LeoVegas brands continue to grow in Europe and Brazil, the operator is on course to break even by the end of next year.
MGM Digital reported a 43% year-on-year (YoY) jump in net revenue, from $128m to $183m, while adjusted EBITDAR was a loss of $26m, compared to $34m loss the year prior.
On a full-year basis, 2025 adjusted EBITDAR losses hit $90.3m, up from $77.2m in 2024.
Fritz said: “The real growth engine on the top line in the digital business has actually been LeoVegas. Most of that is concentrated in Europe with particular emphasis markets in the UK and Sweden.
“We’ve also had a lot of success launching the business in the Netherlands and expanding it there.
“Brazil helps because it comps against very little revenue. But the core LeoVegas business and consumer business is growing north of 30% year over year.
“In terms of path to profitability, I believe we’ve indicated in the past that we would see the loss this year for the digital segment halving relative to last year.
“We might see a little bit more investment this year given some of the regulatory changes and tax changes in Brazil, but we’re definitely anticipating the loss to materially narrow vis-à-vis last year, which then sets us up into 2027 for close to a break-even year, if not 100% getting there.”
Late last year, the Brazilian Senate approved raising the GGR tax from 12% to 18% by 2028, with an increase to 15% across 2026-27.
Fritz was also asked by Macquarie’s Chad Beynon whether the operator would add to its digital portfolio via M&A “from a tech standpoint” or expand “at a time when multiples might be attractive”.
In September 2024, CFO Jonathan Halkyard was asked a similar question, to which he replied he didn’t think there would be any “large-scale digital M&A” for a while.
The Las Vegas giant said in its investor presentation that it had outlaid more than $1bn in investment for MGM Digital, which included several M&A deals to give it a proprietary edge.
Those included the acquisitions of slots studio Push Gaming and Tipico’s US-facing sportsbook tech.
The Tipico tech has since been rebadged as ‘Tiger’ and deployed across multiple brands in various markets, including Brazil, Sweden and Denmark.
Fritz downplayed talk of further M&A, noting the firm is happy with the assets it has acquired.
“We feel confident about the assets that we have under the hood right now,” he replied. “We were very deliberate in assembling the portfolio of assets that we did.
“We didn’t buy the most obvious shiny new thing. We were very deliberate, turned over a lot of rocks and assembled the portfolio that we did.
“We’ve mentioned before, we feel we’re largely fully deployed in terms of capital commitment to the International and MGM Digital business.
“Never say never, but I don’t see any glaring holes in our portfolio at the moment. It would take something extraordinary to see us deploy additional capital.”
At group level, net revenue increased 4% YoY to $4.5bn, with adjusted EBITDA of $580m – down from $637m in Q1 2025.
MGM Resorts International’s share price was down 1.2% to $39.27 at the time of writing.
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Gary Fritz claims the division, spearheaded by LeoVegas Group, is edging closer to turning a profit, while adding there are no immediate plans to sanction further M&A to bolster offering
The post MGM Digital set up for break-even year in 2027, says president first appeared on EGR Intel.