MGM CEO Predicts a Rebound in Las Vegas Tourism Numbers
MGM Resorts Steadily Recovering from Tourism Declines
MGM Resorts International is experiencing a steady recovery after a period of tourism declines, including a significant drop in visitors from Canada, as reported in its Q2 2025 results. The company's net revenue from its Las Vegas resorts was $2.1 billion, a decline of nearly 4% compared to the same period last year, but overall revenue for the company grew by 2% year-over-year to $4.4 billion, thanks to strong digital gaming, regional operations, and growth in Macau [1][2][3].
Despite the foreign currency loss, key metrics such as EBITDA improved, and the company is executing significant capital investments, such as the MGM Grand room remodel, and benefiting from strong convention bookings, positioning it well for the remainder of 2025 [1].
One of the driving forces behind MGM’s recovery is the expansion and robust growth of BetMGM, its digital sports betting and iGaming platform. This digital innovation is expected to generate positive EBITDA and at least $2.7 billion in net revenue for full-year 2025, diversifying its revenue away from solely physical tourism-dependent operations [3][4].
Solid operational execution in regional casinos and international markets like Macau is also offsetting some softness in Las Vegas property metrics amid remodeling [1][2]. Furthermore, MGM's strong balance sheet and disciplined capital management, including a significant share repurchase program, support shareholder value during the recovery period [4].
The decline in Canadian travelers to the US is largely attributed to the decisions of the Trump administration and the subsequent rise in anti-American sentiments among US's northern neighbors. To combat this, MGM launched a program with Marriott Bonvoy, offering hotel discounts and additional benefits [5]. The initiative is expected to generate approximately 900,000 hotel stays this year.
MGM's President and CEO, Bill Hornbuckle, expressed confidence in the company's recovery, despite some challenges. He pointed to recent discussions around the city's value proposition, arguing that Las Vegas remains strong despite headlines, and noted continued improvements in occupancy and deal flow from high-end guests [5]. Some midweek rates in Las Vegas are comparable to those from two decades ago, according to Hornbuckle [6].
Looking ahead, Hornbuckle is optimistic about the rebound of visitation and conference bookings, despite a 11.3% decrease in visitation to Las Vegas in June. He emphasized the need to stay focused on providing value to customers and is looking ahead to August, September, and October with confidence due to the recent trend in bookings [6].
In summary, MGM Resorts is on an upward trajectory in 2025, leveraging digital innovation and broad market exposure to recover from tourism declines, including those from Canada, with solid growth expected through the year and beyond.
References: [1] CNBC. (2025, August 3). MGM Resorts reports Q2 earnings, revenue beats estimates. Retrieved from https://www.cnbc.com/2025/08/03/mgm-resorts-reports-q2-earnings-revenue-beats-estimates.html [2] Yahoo Finance. (2025, August 3). MGM Resorts International (MGM) Q2 2025 Earnings Call Transcript. Retrieved from https://finance.yahoo.com/news/mgm-resorts-international-mgm-q2-2025-173000293.html [3] Reuters. (2025, August 3). MGM Resorts sees Q2 revenue miss on Las Vegas decline, but digital growth. Retrieved from https://www.reuters.com/business/finance/mgm-resorts-sees-q2-revenue-miss-las-vegas-decline-but-digital-growth-2025-08-03/ [4] Seeking Alpha. (2025, August 3). MGM Resorts International (MGM) Q2 2025 Earnings Call Transcript. Retrieved from https://seekingalpha.com/news/3787237-mgm-resorts-international-mgm-q2-2025-earnings-call-transcript [5] Las Vegas Review-Journal. (2025, August 3). MGM Resorts CEO Bill Hornbuckle on company's recovery, Las Vegas’ value proposition. Retrieved from https://www.reviewjournal.com/business/casinos-gaming/mgm-resorts-ceo-bill-hornbuckle-companys-recovery-las-vegas-value-proposition-2460395/ [6] CNBC. (2025, August 4). MGM Resorts CEO Bill Hornbuckle says weekday rates in Las Vegas are comparable to those from two decades ago. Retrieved from https://www.cnbc.com/2025/08/04/mgm-resorts-ceo-bill-hornbuckle-says-weekday-rates-in-las-vegas-are-comparable-to-those-from-two-decades-ago.html
- The casino industry is witnessing a steady recovery, as depicted by MGM Resorts International's gradual rebound from tourism declines.
- The entrepreneurial spirit within the finance sector is evident in MGM's aggressive capital investments, such as the MGM Grand room remodel and share repurchase program.
- The leadership at MGM Resorts is demonstrating vision and resilience, particularly in navigating the challenges posed by foreign currency losses and tourism drops.
- Diversity-and-inclusion efforts, such as the Marriott Bonvoy partnership, aim to attract more travelers and boost the company's revenue.
- Small businesses might benefit from investing in the casino industry, given the progress made by large corporations like MGM Resorts.
- Wealth management firms may consider allocating resources to the casino sector, given the potential for growth in digital gaming and international operations.
- The casino industry is not just for casinos anymore; it's venturing into venture capital, fintech, and real estate, diversifying its offerings and investments.
- The housing market could see a surge in demand, as increased visitation and conference bookings result in more job opportunities and population growth.
- Private equity firms might find attractive investment opportunities in the casino industry, given the sector's ongoing recovery and digital innovation.
- Personal finance experts should guide their clients on the potential risks and rewards associated with investing in the casino industry, particularly in light of the growth of digital gaming platforms.
- Banking-and-insurance institutions could collaborate with casinos to provide services tailored to casino employees, tourists, and high-end guests.
- Fintech startups could explore partnerships with casinos to offer modern payment solutions, enhancing the customer experience in the digital age.
- Real estate investors should consider the potential impact of growing casinos on both commercial and residential properties within the respective areas.
- In the meantime, individuals must practice good financial management, such as budgeting, saving, and debt management, to make the most of any investment opportunities that may arise in the casino industry.
