MGM Resorts International (MGM) J.P. Morgan Gaming, Lodging, Restaurant and Leisure Management Access Forum summary

Strategic priorities and digital focus

• Digital business is the top priority, with BetMGM expected to reach $2.5 billion and expansion into Brazil imminent.

• Continued focus on Las Vegas, leveraging key assets like Bellagio, Cosmopolitan, and Aria to attract younger, higher-spending customers.

• Regional properties and Macau operations remain strong, with stable market share in Macau.

• Development projects in New York and Japan are advancing, with Japan construction contracts being finalized.

• Operational efficiencies targeted at $200 million, with $150 million expected this year, driven by fee increases, labor efficiencies, and automation.

Las Vegas and property investments

• Las Vegas demand remains robust, with strong group and transient business, and successful event-driven performance.

• MGM Grand undergoing a $300 million renovation, repurposing furniture to other properties, and modernizing rooms to appeal to group and leisure customers.

• Systematic room renovations across Las Vegas properties since 2020, reducing average room age and supporting ADR growth.

• Renovations have minimal disruption to group business, though MGM Grand will see a $65 million revenue impact this year.

• Non-gaming attractions and sports events, including the Sphere and potential Oakland A's stadium, are expected to drive visitation and yield.

Digital and international expansion

• BetMGM's growth is driven by product improvements, reduced marketing spend, and enhanced features like single wallet and live betting.

• Live betting and single game parlays are increasing margins, with a focus on further margin expansion as top-line growth plateaus.

• iGaming expansion depends on state tax needs, with Maryland, New York, Illinois, and Alberta as potential new markets.

• International digital business is expanding with new launches in Finland, the Netherlands, and Brazil, leveraging local partnerships for customer acquisition.

• Brazil is seen as a major growth market, expected to surpass Ontario in size and opportunity.