MGM’s Race to Diversify Beyond Casino Resorts Shows Early Strength
Photo Credit: MGM Resorts is wagering many of its resources on future U.S. growth stemming from online gaming and sports betting. Wikimedia / Baishampayan Ghose
Skift Take
MGM Resorts may see plenty of growth opportunities with online gaming platforms. But what happens to its tens of thousands of hotel rooms when more people gamble from the comfort of their own living rooms?
The coronavirus pandemic continues to be catastrophic for Las Vegas casino resort operators, but an expansion into online gaming at least gives MGM Resorts International another option in its recovery toolkit.
MGM reported Wednesday a $448 million fourth quarter loss, tied to revenue being down 66 percent at its Las Vegas resorts and down 58 percent in Macau. But there wasn’t a lot of talk about hotel room performance on an investor call shortly after the financial results posted. Instead, the company’s leaders touted future growth around online gaming and sports betting — a rapidly growing division of the company that doesn’t require customers to fly to resorts in Las Vegas or Macau.
“We do want to diversify our revenues,” MGM Resorts CEO Bill Hornbuckle said on the call. “[Online gaming and sports betting] has already proven itself. We think this is where the industry is going, and we want to be a larger part of it.”
MGM Resorts continues to double down on th
