MGM Resorts: Balancing Las Vegas Strip Weakness, BetMGM Improvements

2025-04-10 16:44:48 ET

Summary

• MGM Resorts International has had stable long-term operational earnings with the company's wide global customer reach.
• More recently, MGM's performance has been pressured by Las Vegas strip weakness, but a good amount of the weakness has been offset by strength in regional casinos and in China.
• The BetMGM platform has stabilized its market position, and is now looking to turn profitable in 2025.
• I estimate MGM stock to have a fair value of $28.6.

MGM Resorts International ( MGM ) is a very diversified gaming company. The company operates 16 casinos within the U.S. at the end of 2024, including Aria, the Bellagio, MGM Grand, and other Las Vegas strip casinos as well as regional casinos. MGM also owns around 56% of two Macau casinos in China and is currently developing a 50%-owned casino in Osaka, Japan through a joint venture. The casino in Japan is planned to open in 2030. The company is also eyeing New York with a bid for the MGM Empire City, among other investments. Additionally, MGM operates online casinos with a 50% stake in BetMGM and through LeoVegas....

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