MGM Resorts CEO Bill Hornbuckle addressed a wide range of industry topics at the Bank of America Securities 2025 Gaming & Lodging Conference, emphasizing MGM’s growth ambitions and expressing skepticism about prediction markets. This discussion followed MGM’s impressive financial performance, as the company surpassed expectations in both revenue and earnings per share for Q2. With a consolidated net revenue of $4.4 billion, MGM set a new quarterly record, demonstrating resilience despite the current tourism slump in Las Vegas and the delayed realization of major investments.
MGM’s stock saw a slight decrease of about 2% on Thursday afternoon, trading around $37. However, the stock has shown a robust performance over the past six months, rising about 15% and increasing 11% year-to-date, signaling investor confidence. Hornbuckle emphasized the importance of growth and diversification, with Las Vegas remaining a core asset for MGM. He stated, “Vegas is principal to who and what we are,” highlighting the city’s significance in navigating a challenging summer. Diversification remains a strategic focus for the company moving forward.
Las Vegas plays a pivotal role in MGM’s portfolio, with the company having a strong presence on the Las Vegas Strip, managing 14 gaming and non-gaming properties. The city’s economic health remains a topic of national interest, as tourism numbers decline while gaming revenue rises. Although social media has been rife with complaints about high prices and fees, MGM’s positive Q2 results are a hopeful sign of stability.
Hornbuckle remains optimistic about Las Vegas’s prospects, countering the narrative of the city’s decline by stating, “We are pushing the narrative that Las Vegas offers significant value at all levels.” Despite this optimism, he acknowledged the challenges faced by lower-end players, citing the bankruptcy of budget airline Spirit Airlines, which saw a 42% decrease in Las Vegas traffic in July, and reduced car traffic from Southern California.
Efforts to boost tourism are underway, with the Las Vegas Convention and Visitors Authority actively working to mend relations with key international markets like Canada. Comments from US leadership have caused tension, leading to a decline in Canadian tourists. LVCVA CEO Steve Hill noted the importance of rebuilding these relationships, acknowledging that some international travelers may not yet be ready to return.
MGM’s expansion efforts in New York were also a focal point of the discussion. The company is one of eight bidders vying for three coveted downstate casino licenses, proposing a $2.3 billion expansion of its MGM Empire City racino in Yonkers. The property’s existing infrastructure and community contributions position it as a strong contender, although Hornbuckle expressed frustration with the drawn-out process and recent changes to the licensing rules.
The New York State Gaming Commission’s new framework ties the duration of casino licenses to the amount spent on development. Investments under $1.5 billion receive a 10-year license, while those exceeding $10 billion are granted a 30-year license. MGM’s Empire City proposal, with its lower investment, falls into the 15-year license category, unlike some competitors proposing over $5 billion and qualifying for longer terms. This framework reflects a shift in the competitive landscape, with higher investments potentially yielding greater long-term benefits.
Hornbuckle’s irritation may stem from being outbid by competitors, yet he remains committed to matching current tax rates and fulfilling racing commitments, recognizing these as part of MGM’s obligations in the licensing process.
In terms of sports betting and iGaming, little was mentioned about BetMGM during the conference, as the joint venture with UK-based Entain had its own presentation. Despite Entain’s recent legal challenges, BetMGM has enjoyed a successful year, bolstered by improvements in product quality and market share stabilization. Hornbuckle noted the competitive landscape, with BetMGM vying for third place in the US market alongside FanDuel and DraftKings.
Conversely, Hornbuckle took a firm stance against prediction markets, reiterating previous concerns about federal involvement in sports outcomes. He warned that allowing such markets could invite unnecessary government oversight, a direction MGM is unwilling to pursue. This caution may limit BetMGM’s future ventures into prediction markets, as competitors like FanDuel and Underdog forge ahead with related deals.
Hornbuckle concluded that while prediction markets are a rising trend, MGM remains focused on understanding and preparing for their potential impact without officially endorsing them. As the industry evolves, MGM’s strategic emphasis on core assets and prudent expansion contrasts with more aggressive approaches, illustrating the varied strategies within the gaming sector.
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