MGM CEO fights again in opposition to ‘Vegas is useless’ — CDC Gaming

MGM Resorts International CEO Bill Hornbuckle Thursday countered the criticism on social media that Las Vegas guests are getting gouged.

While Las Vegas has seen an 8% drop in vacationers visiting this yr, Hornbuckle mentioned “the fundamentals of Las Vegas are strong.” He’s optimistic that the market will see enchancment this fall and into 2026 and alter perceptions concerning the metropolis.

Hornbuckle and members of the MGM govt group appeared Thursday morning on the Bank of America Securities 2025 Gaming and Lodging Conference in New York City.

“I read a headline the other day that Las Vegas is dead,” Hornbuckle mentioned with a chuckle. “No, Las Vegas isn’t dead. We ran 98% this weekend. Full stop. We’re far from dead. (The drop off) is at the lower end, the value-oriented folks who go to the Excalibur or Luxor. We’re putting on a push, because we let the narrative get away from us in the context of value. Las Vegas is and remains a huge value for consumers at all levels.”

MGM’s high-end properties, equivalent to Bellagio, Aria, and Cosmopolitan, proceed to carry out at a excessive degree, however not in addition to they have been, Hornbuckle mentioned. Compared to 2023 and 2024, which have been “atmospheric,” these properties are off.

Hornbuckle cited the Las Vegas Convention and Visitors Authority taking steps to fight the decline in tourism by selling in Canada and a newly launched nationwide marketing campaign. “We’re all participating in a citywide program to promote Las Vegas in terms of value and production.”

MGM has taken a take a look at its pricing, however it’s not about room charges or resort charges or parking charges, Hornbuckle mentioned. MGM properties are a superb worth, and he mentioned they addressed costs in different areas.

“We’re going back through our pricing on things people touch every day that matter. Tonight, you can check in to New York-New York or Excalibur for 85 bucks, including resort fee. You can get a $5 beer and bet on a $5 table. We’ve looked at the marketplace and we’re going to make a difference where it helps.”

Hornbuckle talked about robust fundamentals of Las Vegas coming into the conference and occasion season within the fall. He cited the Crawford-Canelo battle this month and the beginning of the Las Vegas Raiders’s NFL season with 65,000 individuals attending 9 video games as an alternative of eight final yr. Paul McCartney can be coming in October to Allegiant Stadium.

“Continuing the fall event program with the convention foundation back in play will change the whole story,” Hornbuckle mentioned. “We know our group business is strong in the fourth quarter and as strong as it has ever been in 2026 and 2027. What we’re booking today versus booked historically is bigger and better. I know corporate America will show up because the boss makes them show up. We opened up our Marriott (business relationship) to conventions; With CES, for example, we now accept Bonvoy points. That will make a difference citywide and for us, it’s a distinct advantage.”

Impacting MGM over the summer season was a large transform on the MGM Grand with 800 rooms out of order. They’ve sped that up so the work will likely be completed by the center of October, which Hornbuckle referred to as “a meaningful thing to do.”

He additionally identified the chapter of Spirit Airlines that has pulled again virtually 400,000 seats and impacted summer season visitation; the latest quantity confirmed a 12% decline in July.

For an organization to climate downturns in Las Vegas and elsewhere, Hornbuckle mentioned the bottom line is diversification over the subsequent three to 5 years. Hornbuckle admits MRI is Vegas-centric, however the firm can be diversifying with their digital enterprise mid-term and Japan and Asia long run.

“No matter what happens in Las Vegas, it will deleverage that (part) of the portfolio,” Hornbuckle mentioned. “To us, it’s about continued growth and diversification.”

According to Hornbuckle, MGM’s regional U.S. resorts are doing effectively, main in 5 of the eight markets they function in.

“Regionals perform well in more difficult times and they’re continuing to perform well, particularly in a place like Atlantic City (at the Borgata). We have the (multimillion-dollar rebranding and redesign of the Water Club), the tower (and 700 guest rooms renovated), and the casino floor in context of VIP business. We have a noodle shop and expanded the VIP area. That business has remained strong.”

As for Macau, Hornbuckle was requested about its enchancment over the summer season. He mentioned there are 25 million guests with seven to eight million individuals coming 3 times a yr. The junket tiers are gone and VIP clients are coming en masse. They have been advertising and marketing effectively in Southeast Asia and different locations to offer a carry.

Hornbuckle mentioned it helps that MGM has 9 motels in China and understands the hospitality enterprise there.
Also optimistic is that folks can now go to Macau greater than 3 times a yr and that the market has room to develop. MGM received aggressive on the on line casino ground and adjusted the design, the positioning of video games, the lighting, how they feed individuals, and extra.

“We went deeply into that, asking customers what they want to see and do and we’ve been rewarded for it,” Hornbuckle mentioned. “Others are following suit and that’s not a surprise. Although it’s always aggressive there, we haven’t seen marketing dollars leap out of control. We’re going to hit 28% margin give or take.”

In a dialogue about BetMGM, MGM’s partnership with Entain, Hornbuckle mentioned they have been aggressive in advertising and marketing, which has accrued to the underside line. Improving the product and making it extra aggressive have made “a massive difference,” he famous.

BetMGM’s enterprise has seen a $400 million turnaround in a yr. MGM has reached 50 million of their rewards applications, which helps of their omnichannel strategy that’s already paid dividends in Michigan, New Jersey, and Las Vegas, he mentioned.

In New Jersey, Hornbuckle mentioned they proceed to see double-digit development in igaming and 30% development of their sports activities betting markets.

“We’ve stopped losing share and are taking back some share,” Hornbuckle mentioned. “Over time, some 15% of folks who touch our product or BetMGM’s product share and touch both products. It’s almost a $400 million turnaround from where we sat here a year ago. More importantly, we talked about making $500 million at some point as the next threshold. There’s a vision and view that we believe are very real at this point.”

Concerning the joint partnership with Entain and previous makes an attempt by MGM to amass the corporate, Hornbuckle mentioned they aren’t all in favour of sidetracking or complicated the enterprise presently with a lot in play. “Some other deviation is not smart, so we’ll continue on the track we’re on take a view once we get to the next tier.”

The host requested if that was a shot in opposition to prediction markets that fall underneath the Commodity Future Trading Commission.

“MGM Resorts’s view is prediction markets invite the federal government into a space it’s never been and it’s not a place we would like to see this marketplace go. We’re going to watch. We’d be foolish not to. Prediction markets have been there for 20 years. They’re 10% market share and they get beat up a lot. If you go play in these prediction markets, you don’t have to be that sharp to figure out what to do. We have to contend with and understand it and be ready for it if it becomes more real. Officially, it is not something we endorse.”