MGM Resorts International has been working on improving its position in Las Vegas in 2024. On July 17, the Las Vegas casino owner closed the Mirage Resort Casino. Also, a Hard Rock International Guitar Hotel will replace it. According to casino reviews and news sites, the new owners target its opening in 2027. Furthermore, MGM Resorts predicts future revenue issues.
By 2022, Hard Rock had bought The Mirage from MGM Resorts International. A 600-room, 660-foot-tall Guitar Hotel designed by Hard Rock will be constructed on the Las Vegas Strip at the present-day location of the old Mirage Volcano. We will update and rebrand the remaining property to reflect the Guitar Hotel’s aesthetic.
Since then, MGM Resorts and Marriott International have joined forces to transform the historic Delano Las Vegas, a non-gaming hotel on the Mandalay Bay Resort & Casino estate, into a new W Hotel brand on the Strip.
Future Revenue Issues for MGM Resorts
According to online casino strategies experts, this long-term strategic license deal between MGM and Marriott was finalized in July 2023. The W Las Vegas, which will be part of the Marriott Bonvoy portfolio, will finish converting later in 2024. As stated in a statement dated October 21, more announcements regarding the property are expected later.
The W Las Vegas joins the Bellagio, Aria, The Cosmopolitan, and Mandalay Bay as part of the MGM Collection with Marriott Bonvoy, expanding the collection to twelve properties on the Strip. The MGM Collection with Marriott Bonvoy did not include the Delano Las Vegas.
Third-quarter consolidated net sales for MGM Resorts were $4.2 billion, up 5% year-over-year. Net income was $185 million, up from $165 million in the same quarter last year, according to the company’s record report released on October 30. The third quarter ended on September 30th, and the company’s Las Vegas Strip revenue was $2.1 billion, an increase of 1% over the same quarter last year.
MGM Las Vegas Casino Revenue
A surge in non-gaming earnings was cited as the reason for the expansion. However, that strength was somewhat offset by a 13% drop in revenue from Las Vegas casinos to $476 million, down from $546 million in the same month in 2023.
While the October earnings conference and release did not explain the gaming revenue loss, the business noted that the drop in Las Vegas Strip table games and the number of wins had declined year over year. However, there were small gains in both slot handling and slot win.
A drop in casino income could have been caused, in part, by the closing of The Mirage. Despite generally third-quarter solid numbers, not all of the news from MGM Resorts’ earnings call on October 30 was positive.
Financial Officer Jonathan S. Halkyard of MGM identified two factors that will negatively affect profitability in 2025 despite the business’s anticipated increase in total cash rates in Las Vegas.
The 2024 Super Bowl in Las Vegas brought in approximately $60- $70 million for MGM. However, since the 2025 game will be held in New Orleans, the corporation will not reap the financial benefits of such an event.
With the planned refurbishment of 4,000 standard rooms at the MGM Grand Hotel Las Vegas, MGM is also facing a huge construction interruption in 2025, according to Halkyard, who spoke about it during the company’s earnings call. The business anticipates that this disturbance will affect its quarterly and yearly performance. He promised that the Las Vegas hotel and casino operator would try to divert requests for rooms at the MGM Grand to its other establishments.
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