Direct Answer
MGM Resorts International (MGM) is one of the world's largest casino and hotel operators, with iconic Las Vegas Strip properties (Bellagio, MGM Grand, Aria), regional US casinos, and Macau gaming assets through MGM China. The company has sold most of its real estate to VICI Properties in sale-leaseback transactions and operates BetMGM, a major US online sports betting and iGaming platform, through a joint venture with Entain.
MGM Resorts International (MGM) Business & Investor Dossier
Company Snapshot
| Ticker | MGM (NYSE) |
|---|---|
| Founded | 1986 (MGM Grand Hotel opened) |
| Headquarters | Las Vegas, Nevada |
| Sector | Consumer Discretionary |
| Industry | Hotels, Resorts & Cruise Lines / Casinos & Gaming |
| Business | Casino gaming, hotel, food & beverage, entertainment |
| Key Properties | Bellagio, MGM Grand, Aria, Park MGM, New York-New York, Vdara, Excalibur |
| Notable | Sold most real estate to VICI REIT; owns 56% of MGM China (Macau) |
| Online Gaming | BetMGM (50/50 JV with Entain) |
| Key Competitors | Caesars Entertainment, Las Vegas Sands, Wynn Resorts |
What Does MGM Resorts Do?
MGM Resorts operates a portfolio of iconic casino resorts concentrated on the Las Vegas Strip and in regional US markets, plus international exposure through its majority-owned Macau gaming subsidiary. The Las Vegas properties -- Bellagio, MGM Grand, Aria (via CityCenter ownership), Park MGM, New York-New York, Excalibur, Luxor, and others -- collectively make MGM one of the largest gaming and hospitality companies on the Strip. Regional properties extend the brand into regional casino markets across the US.
The company has undergone significant capital structure transformation in recent years, selling real estate to VICI Properties to unlock capital while retaining operating control through long-term leases. Online gaming through BetMGM has added a digital dimension to what was historically a land-based gaming business.
Las Vegas Economics
The Las Vegas Strip business model combines gaming (which generates high margins when volumes are strong) with non-gaming revenue from hotel rooms, restaurants, shows, nightclubs, and retail. Non-gaming revenue has grown as a share of Las Vegas revenue over the past two decades, as operators have invested in premium dining, entertainment, and resort amenities to attract customers who may spend only a fraction of their trip at the casino tables. MGM's Bellagio is one of the highest-revenue per-square-foot gaming properties in the world, known for premium gamblers, an exceptional hotel product, and the Bellagio Fountains.
Frequently Asked Questions
How does MGM Resorts make money?
MGM Resorts makes money through casino gaming (slot machines, table games, sports betting), hotel rooms, food and beverage, entertainment, and retail across its portfolio of Las Vegas Strip resorts and regional US casinos. The Las Vegas Strip segment (Bellagio, MGM Grand, Aria, Vdara, Park MGM, New York-New York, Excalibur, and others) is the largest revenue contributor. MGM also owns 56% of MGM China, which operates MGM Macau and MGM Cotai on the peninsula. BetMGM, a 50/50 joint venture with Entain, is the online sports betting and iGaming platform.
What is the MGM-VICI REIT relationship?
MGM sold most of its Las Vegas real estate to VICI Properties (a gaming-focused REIT) through a series of transactions. MGM now operates its properties under long-term triple-net leases, paying VICI rent rather than owning the buildings outright. This sale-leaseback strategy unlocked capital from real estate that was locked inside the operating company, allowing share buybacks and debt reduction, while VICI gets stable long-term rent income from a high-quality gaming tenant. The trade-off is that MGM's operating earnings are now reduced by substantial annual rent obligations that persist regardless of casino performance.
How does the Macau gaming business affect MGM?
MGM China operates two properties in Macau -- MGM Macau on the peninsula and the larger MGM Cotai -- under a gaming concession from the Macau government. Macau gaming revenue is primarily driven by mainland Chinese VIP gamblers and mass-market visitors, both of which are sensitive to Chinese economic conditions, travel restrictions, and regulatory actions. Macau gaming revenues were devastated during COVID-19 travel restrictions, then rebounded strongly. The Macau business adds geographic diversification but introduces significant regulatory and geopolitical risk from Chinese government policy, currency controls, and the concession renewal process.
What is BetMGM and how important is online gaming?
BetMGM is MGM Resorts' 50/50 online sports betting and iGaming joint venture with Entain (UK-listed gaming company). BetMGM operates in states where online sports betting and/or casino gaming is legal, competing with DraftKings, FanDuel (Flutter), and Caesars. The online gaming opportunity is significant but also highly competitive and capital-intensive in the customer acquisition phase. BetMGM has been one of the top two or three US online gaming operators, but profitability requires scale and the promotional spending environment has been intense since legal sports betting expanded state by state.
What are the main risks for MGM Resorts?
Main risks include economic sensitivity (consumer discretionary spending on casino gambling falls during recessions), Macau regulatory and geopolitical risk (Chinese government policy can restrict or suspend gaming operations), leverage from both corporate debt and VICI lease obligations, cybersecurity exposure (MGM suffered a major cyberattack in 2023 that disrupted Las Vegas operations for weeks), online gaming competitive intensity (BetMGM faces formidable competition from FanDuel and DraftKings), and the ongoing cost of renovating and expanding properties to maintain Las Vegas' competitive position against new and renovated competitors.