MGM Resorts is the latest brick-and-mortar casino giant to consider closing some of its properties. The gambling giant is reportedly in the process of mulling over whether to close some of its Las Vegas casinos, albeit temporarily. Partial closures are also being considered.
The move is identical to the ones being made by many rival gambling goliaths in response to a slow-down in revenue during the COVID-19 pandemic.
Soft Demand Could Lead to Partial Closures
It is not apparent whether MGM is considering fully closing some of its most popular Las Vegas casinos, or whether a partial closure is more along the lines of the direction they wish to go. According to reports, Bill Hornbuckle, MGM’s Chief Executive Officer has considered closing the least viable and profitable “amenities”, “towers”, and “brands” in a move which could last until Christmas.
The primary reason for the decision to close or partially close is believed to be a lack of revenue earned at the ten casinos owned by MGM on the Las Vegas Strip. Wynn Resorts Limited has already made similar moves to scale back its operations in Las Vegas, citing “low visitation” as the principal reason.
How Much Are We Talking About?
It is believed that MGM Resorts lost 66% in year-on-year revenue up to September, with a third-quarter net loss of $535 million. This is in stark contrast to the $37 million profit the company announced at the same time in 2019. On top of that, net revenues are down 68% from the Las Vegas strip properties, predominantly due to the COVID-19 pandemic.
MGM Goes Online
While a decision may not have been made regarding MGM Resort’s Las Vegas Strip casinos, the company is ploughing ahead with its online casino gambling operations. Over the last six months, MGM has ploughed resources into the internet side. Sportsbooks have opened in several states, and rumors are rife that live casino and online casino games will be on the way before too long. MGM has long fought against online casinos, but it now seems that the company is finally being swayed to see the benefits of internet-based casino gameplay.
Will MGM Sell?
It is unlikely that MGM Resorts will do anything more than partially or fully close its Las Vegas casinos for a temporary period. While rival companies have considered selling properties in a bid to balance out the books, this does not appear to be something that MGM is considering. The company has made it clear that they view their long-term future in the land-based betting world as solid.