We’re a week removed from the Kentucky Derby and Cinco De Mayo weekend in Las Vegas. I didn’t think I’d feel this way but Derby Day felt incomplete without a big fight. I haven’t been a boxing fan for a few years but the excitement a big fight brings to Las Vegas is unmatched. Boxing also brings in the biggest customers according to MGM Resorts.
There’s no way to sugar coat MGM Resorts first quarter earnings. I opened the quarterly MGM Resorts earnings presentation as soon as I woke up and saw a slew of red down arrows. After a cup of coffee and actually spending time reading the why there were red arrows it’s easy to see that MGM Resorts just had a bad quarter.
Most casino operators in Las Vegas prefer to have a revenue split close to MGM than Caesars. In fact, Caesars wants to have a revenue split closer to MGM Resorts. The two casino operators have different approaches to their companies. MGM Resorts is expanding with new casinos and a massive profit growth plan. Meanwhile, Caesars Entertainment is looking elsewhere to generate revenue.