MGM Remains Optimistic About Las Vegas Despite Financial Declines

MGM Resorts International has expressed a positive outlook for Las Vegas despite reporting a decline in key financial metrics for the third quarter of 2025. The company’s net revenue from its Las Vegas properties fell to $2 billion, down 7% from $2.1 billion in the same period last year. This marks the second consecutive quarter of year-over-year revenue declines, attributed primarily to a broader trend of reduced visitation to the city.

During a recent earnings call, CEO Bill Hornbuckle highlighted early signs of recovery, particularly in the fourth quarter of 2025. He noted that strong convention attendance and heightened interest in the upcoming Formula One race are contributing to a stabilizing environment. “We see stabilization in the fourth quarter and growth in 2026 and beyond,” Hornbuckle stated. He emphasized that Las Vegas remains a long-term epicenter of entertainment, with a favorable outlook driven by a growing local population and expanding infrastructure.

While MGM’s overall casino revenue also experienced a downturn, falling from $476 million to $450 million, the company did report a slight increase in slot handle and win. The latter rose by 4% year-over-year, indicating some resilience in this segment, even as table game revenues suffered due to a decline in win percentage.

Room revenue took a significant hit, dropping 11% from $743 million in Q3 2024 to $660 million in Q3 2025. Average daily rates fell by 3%, while revenue per available room decreased by 8%, reflecting a broader decline in occupancy rates which dropped from 94% to 89% during the same period.

The financial challenges facing MGM can partly be attributed to an extensive remodel of the MGM Grand, the company’s largest property by room count. Despite the temporary setbacks, executives believe that the renovations are already driving stronger performance in the current quarter. Hornbuckle noted that the company is focused on fewer, high-end properties, which positions it well within the competitive landscape of Las Vegas.

In contrast, MGM’s regional casinos and its properties in China reported year-over-year gains in revenue, showcasing a diversified portfolio that continues to perform well outside of Las Vegas. The company’s online sports betting platform, BetMGM, has also seen robust growth both domestically and internationally, providing a buffer against the downturn in traditional gaming revenue.

As MGM navigates these fluctuating financial tides, it remains committed to the Las Vegas market, where it generates more revenue than from all its other U.S. and Chinese properties combined. The company’s strategic focus on enhancing its offerings and adapting to evolving consumer demands may well lead to recovery in the coming years.

MGM’s ability to weather the current financial storm will ultimately hinge on its capacity to attract visitors back to Las Vegas, particularly as the city works to recover from recent declines in tourism. With an optimistic forecast for 2026 and beyond, the company is poised to capitalize on the eventual resurgence of the entertainment capital.