MGM Resorts to Sell the Mirage and Focus on Expanding Its Gambling Empire
MGM Resorts International is in the midst of change. The multi-billion-dollar gaming company is selling one of its biggest casinos in Las Vegas so it can focus on new ventures. Which casino? Well, according to Bill Hornbuckle, CEO of MGM Resorts, his company is in the initial stages of selling the Mirage. Offloading an asset it owned for 21 years will allow MGM to maintain its “existing Las Vegas exposure while focusing on the complementary and diverse nature of our offerings in our hometown,” Hornbuckle told CNN.
How much the casino will sell for and who will buy it remain the great unknowns at this stage. However, MGM’s intention is to drive forward its own business in a variety of ways. The first way is taking control of the Cosmopolitan. Private equity firm Blackstone Real Estate Partners VI is selling one of the newest casinos in the strip to MGM Resorts for $5.6 billion. Hornbuckle described the 30-year lease agreement as an “ideal fit” for the company.
Expanding its portfolio of brick-and-mortar casinos is a big step for MGM. However, it’s not the most significant move the company has made in recent months. The rise of regulated online sports betting, combined with the rise of online casino gaming, has created a burgeoning market in the US. MGM is at the forefront of this digital revolution. Currently ranked among the best online casinos in USA, BetMGM is available on all devices, offers upwards of 500 games, and gives customers access to the famous Mlife rewards scheme.
Building an Online Empire Across the US
This platform is currently available in a variety of states, including New Jersey, Pennsylvania, and Michigan. The plan, however, is to launch in many more. Each state has the power to regulate online casino gaming as it sees fit. The current trend is to piggyback new legislation onto sports betting bills. This means BetMGM has online sportsbooks in states where it doesn’t get offer casino gaming. For example, people in Virginia can bet on football and other sports, but they can’t spin slots.
However, as online gambling becomes commonplace, it will open the door to new opportunities. This is where MGM has a chance to take advantage of its position and launch more online casino sites. Selling the Mirage and freeing up capital will facilitate these efforts. Of course, it won’t be doing it alone. MGM partnered with online gaming company Entain in 2018. The $200 million link-up led to the creation of ROAR Digital and, in turn, a network of US gambling sites.
Today, the two companies are among the biggest names in the business. Indeed, since the partnership, Entain’s stock price has jumped from 950GBX to over 1,900GBX. This isn’t all down its joint venture with MGM, but it’s certainly helped. Indeed, chasing individual growth was a major reason for MGM and Entain joining forces. However, the deal is about much more than that. US online gambling is a sleeping giant. Both companies are eager to take advantage of its potential and they need each other to do it.
MGM Has an Opportunity to Get Ahead of its Rivals
Much like Netflix jumped on the streaming bandwagon and become an industry leader, MGM is in a position to do something similar with the help of Entain. The American Gaming Association put gambling revenue in the US at $44 billion in 2021. An ever-increasing percentage of this revenue is coming from online casinos, poker, and sports betting sites. BetMGM has the resources and the financial might to dominate the market. Then, in the same way Netflix can set new trends with hits such as Squid Games, MGM can introduce new ideas in the casino sector. In fact, this is something it’s already doing.
The MGM Grand Millions slot is a tribute to the company’s iconic Las Vegas casino. As well as offering five reels and 243 paylines, the game is a product of MGM’s digital empire. This innovation is just the tip of a much larger iceberg. Leading casino operators in the UK have found ways to link their offline products to their online platforms. For example, the Hippodrome in London has an online site. Customers can visit this site, go to the live gaming lobby, and see roulette tables inside the London casino. Not only can customers see the tables, but they can also make bets and win money based on the outcome of a spin.
MGM could do this. Players can open BetMGM and play live games linked to one of the company’s 31 bricks and mortar casinos. That’s interesting and unique. Moreover, it’s another way this company can get ahead in the industry. However, to do this, it needs to evolve as a business and, according to Hornbuckle, that means offloading the Mirage. It’s an exciting time for MGM Resorts and, moreover, the US gambling industry. If the Mirage goes for a high price, MGM will likely bet on itself and use that money to fund its digital revolution.
