MGM China has reported a slight dip in profitability for the first quarter of 2026, even as revenue across its Macau properties continues to climb. Despite a 9% increase in net revenue, which reached $1.1 billion, the operator’s operating profits fell by 4% compared to the same period last year, landing at $273 million.
The primary factor squeezing the company’s margins was a significant jump in brand licensing expenses. Following a new long-term agreement with its U.S.-based parent company, MGM Resorts, these fees doubled to $41 million. This additional financial commitment offset the gains made from a busy quarter in the world’s largest gambling hub.
While the Macau subsidiary faced specific headwinds, the broader MGM Resorts group reported record consolidated revenue of $4.5 billion, a 4% year-over-year increase.
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Bill Hornbuckle, President and CEO of MGM Resorts, noted that the overall performance was buoyed by growth in digital operations and North American betting markets. However, the parent company’s total operating profit also saw a decline, dropping to $580 million from $637 million the previous year.
The results come at a time of general growth for the Macau gaming sector, which remains the only jurisdiction in China where casino gambling is legal. Total gaming revenue across the territory’s six concessionaires rose more than 14% in the first quarter of 2026.
The local government remains optimistic about the year ahead, projecting that total annual casino revenue will grow to approximately $28.7 billion.
