MGM Resorts International has been on fire for the past year or two. The growth rate for the casino operator has been nothing less than impressive. In Las Vegas alone, MGM Resorts International opened T-Mobile Arena, Park Theater, and The Park last year. They’re currently renovating Monte Carlo to become a new casino-resort called Park MGM.
Beyond Las Vegas, MGM Resorts International opened MGM National Harbor in Maryland and will open MGM Springfield later this year in Massachusetts. They also plan on opening MGM Cotai before the year is over.
Last year MGM Resorts International purchased 50% of the Borgata in Atlantic City that they didn’t own from Boyd Gaming. This purchase wasn’t made just to have full ownership of what many feel is the best casino-resort in Atlantic City. This shining star sits between Springfield, MA and Oxon Hill, MD and will help create a bridge between their east coast properties.
In 2016, MGM Resorts International proudly debuted the Profit Growth Plan (PGP). The goal of PGP is to generate new revenue for the company while minimizing expenses. Paid parking in Las Vegas are one of the most popular examples of generating new revenue. Meanwhile, the casino and hotel operator is streamlining everything from toiletries to how much liquor is poured into drinks.
PGP has drawn the ire of many visitors to Las Vegas. On their most recent earnings call, MGM Resorts International had good news for anyone visiting Las Vegas. PGP is ahead of schedule and was mostly instituted last year. There shouldn’t be more cutbacks and new fees for customers in Las Vegas.
The bad news in New Jersey is that MGM Resorts International isn’t finished implementing the plan. The Borgata is next in line to become a part of the MGM Resorts International family. They didn’t reveal specifics for streamlining expenses or maximizing revenue on the earnings call. However, Borgata will become a part of the Mlife Rewards family in the 2nd quarter of the year.
Sometime between April and June the Borgata players club will change over to M Life Rewards. On the call, it sounded like they would like to get this done sooner than later, but that’s just reading into the discussion. (Also see : Atlantic City | Winding Down Casino Offers )
During the call, representatives of MGM Resorts International said that they’re happy with food and beverage performance at the property. They made it a point to touch on gambling at Borgata. January was best month ever for slot win at the casino and they want to see that continue to grow. The casino is where MGM Resorts International thinks they can generate great margins.
In Las Vegas, greater margins in the casino have meant implementing 6:5 blackjack in all casinos. Nothing specific was mentioned, but blackjack is just one things to be concerned about. Video poker is considered a slot machine by the gaming commissions, so you might want to keep an eye on paytable downgrades. The best source for that information is vpFREE2. We spoke a bit about this at Travelzork, Gambling Downgrades and “Upgrades” at Borgata Atlantic City by MGM.