MGM Resorts International CEO Bill Hornbuckle Thursday countered the criticism on social media that Las Vegas visitors are getting gouged.
While Las Vegas has seen an 8% drop in tourists visiting this year, Hornbuckle said “the fundamentals of Las Vegas are strong.” He’s optimistic that the market will see improvement this fall and into 2026 and change perceptions about the city.
Hornbuckle and members of the MGM executive team appeared Thursday morning at the Bank of America Securities 2025 Gaming and Lodging Conference in New York City.
“I read a headline the other day that Las Vegas is dead,” Hornbuckle said with a chuckle. “No, Las Vegas isn’t dead. We ran 98% this weekend. Full stop. We’re far from dead. (The drop off) is at the lower end, the value-oriented folks who go to the Excalibur or Luxor. We’re putting on a push, because we let the narrative get away from us in the context of value. Las Vegas is and remains a huge value for consumers at all levels.”
MGM’s high-end properties, such as Bellagio, Aria, and Cosmopolitan, continue to perform at a high level, but not as well as they were, Hornbuckle said. Compared to 2023 and 2024, which were “atmospheric,” those properties are off.
Hornbuckle cited the Las Vegas Convention and Visitors Authority taking steps to combat the decline in tourism by promoting in Canada and a newly launched national campaign. “We’re all participating in a citywide program to promote Las Vegas in terms of value and production.”
MGM has taken a look at its pricing, but it’s not about room rates or resort fees or parking fees, Hornbuckle said. MGM properties are a good value, and he said they addressed prices in other areas.
“We’re going back through our pricing on things people touch every day that matter. Tonight, you can check in to New York-New York or Excalibur for 85 bucks, including resort fee. You can get a $5 beer and bet on a $5 table. We’ve looked at the marketplace and we’re going to make a difference where it helps.”
Hornbuckle talked about strong fundamentals of Las Vegas coming into the convention and event season in the fall. He cited the Crawford-Canelo fight this month and the start of the Las Vegas Raiders’s NFL season with 65,000 people attending nine games instead of eight last year. Paul McCartney is also coming in October to Allegiant Stadium.
“Continuing the fall event program with the convention foundation back in play will change the whole story,” Hornbuckle said. “We know our group business is strong in the fourth quarter and as strong as it has ever been in 2026 and 2027. What we’re booking today versus booked historically is bigger and better. I know corporate America will show up because the boss makes them show up. We opened up our Marriott (business relationship) to conventions; With CES, for example, we now accept Bonvoy points. That will make a difference citywide and for us, it’s a distinct advantage.”
Impacting MGM over the summer was a massive remodel at the MGM Grand with 800 rooms out of order. They’ve sped that up so the work will be done by the middle of October, which Hornbuckle called “a meaningful thing to do.”
He also pointed out the bankruptcy of Spirit Airlines that has pulled back almost 400,000 seats and impacted summer visitation; the most recent number showed a 12% decline in July.
For a company to weather downturns in Las Vegas and elsewhere, Hornbuckle said the key is diversification over the next three to five years. Hornbuckle admits MRI is Vegas-centric, but the company is also diversifying with their digital business mid-term and Japan and Asia long term.
“No matter what happens in Las Vegas, it will deleverage that (part) of the portfolio,” Hornbuckle said. “To us, it’s about continued growth and diversification.”
According to Hornbuckle, MGM’s regional U.S. resorts are doing well, leading in five of the eight markets they operate in.
“Regionals perform well in more difficult times and they’re continuing to perform well, particularly in a place like Atlantic City (at the Borgata). We have the (multimillion-dollar rebranding and redesign of the Water Club), the tower (and 700 guest rooms renovated), and the casino floor in context of VIP business. We have a noodle shop and expanded the VIP area. That business has remained strong.”
As for Macau, Hornbuckle was asked about its improvement over the summer. He said there are 25 million visitors with seven to eight million people coming three times a year. The junket tiers are gone and VIP customers are coming en masse. They have been marketing well in Southeast Asia and other places to provide a lift.
Hornbuckle said it helps that MGM has nine hotels in China and understands the hospitality business there.
Also positive is that people can now go to Macau more than three times a year and that the market has room to grow. MGM got aggressive on the casino floor and changed the design, the positioning of games, the lighting, how they feed people, and more.
“We went deeply into that, asking customers what they want to see and do and we’ve been rewarded for it,” Hornbuckle said. “Others are following suit and that’s not a surprise. Although it’s always aggressive there, we haven’t seen marketing dollars leap out of control. We’re going to hit 28% margin give or take.”
In a discussion about BetMGM, MGM’s partnership with Entain, Hornbuckle said they were aggressive in marketing, which has accrued to the bottom line. Improving the product and making it more competitive have made “a massive difference,” he noted.
BetMGM’s business has seen a $400 million turnaround in a year. MGM has reached 50 million in their rewards programs, which helps in their omnichannel approach that’s already paid dividends in Michigan, New Jersey, and Las Vegas, he said.
In New Jersey, Hornbuckle said they continue to see double-digit growth in igaming and 30% growth in their sports betting markets.
“We’ve stopped losing share and are taking back some share,” Hornbuckle said. “Over time, some 15% of folks who touch our product or BetMGM’s product share and touch both products. It’s almost a $400 million turnaround from where we sat here a year ago. More importantly, we talked about making $500 million at some point as the next threshold. There’s a vision and view that we believe are very real at this point.”
Concerning the joint partnership with Entain and past attempts by MGM to acquire the company, Hornbuckle said they aren’t interested in sidetracking or confusing the business at this time with so much in play. “Some other deviation is not smart, so we’ll continue on the track we’re on take a view once we get to the next tier.”
The host asked if that was a shot against prediction markets that fall under the Commodity Future Trading Commission.
“MGM Resorts’s view is prediction markets invite the federal government into a space it’s never been and it’s not a place we would like to see this marketplace go. We’re going to watch. We’d be foolish not to. Prediction markets have been there for 20 years. They’re 10% market share and they get beat up a lot. If you go play in these prediction markets, you don’t have to be that sharp to figure out what to do. We have to contend with and understand it and be ready for it if it becomes more real. Officially, it is not something we endorse.”
