Must-know: An overview of MGM Resorts

MGM Resorts (MGM) was founded in 1986. MGM is based in Nevada. It’s one of the leading global hospitality and entertainment companies.

Shawn Bolton - Author

Nov. 20 2020, Updated 11:24 a.m. ET


Company overview

MGM Resorts (MGM) was founded in 1986. It was formerly known as MGM Grand. In May 2000, MGM Grand merged with Mirage Resorts to form MGM Mirage. In June 2010, MGM Mirage changed its name to MGM Resorts International.

The above chart shows how MGM evolved over the years. MGM’s main competitors include Las Vegas Sands (LVS), Wynn Resorts (WYNN), and Caesars Entertainment (CZR). Investors wanting to have a diversified exposure in these companies can invest in exchange-traded funds (or ETFs) like the Consumer Discretionary Select Sector SPDR Fund (XLY).

Business overview

MGM is based in Nevada. It’s one of the leading global hospitality and entertainment companies. MGM develops, builds, and operates destination resorts. MGM offers accommodations, dining, entertainment, meeting and convention facilities, and retail and gaming.

MGM’s casino operations offer a range of slots, table games, and race and sports book wagering. MGM operates a portfolio of destination resort brands—including the Bellagio, MGM Grand, Mandalay Bay, and The Mirage.

MGM owns and operates 15 properties. It has 50% investments in three other properties. MGM also has a 51% interest in MGM China Holdings. MGM China Holdings owns MGM Macau. It’s in the process of developing a resort on the Cotai Strip known as MGM Cotai.

MGM’s revenue is mostly cash-based. Customers wager with cash or pay for non-gaming services with cash or credit cards. MGM depends on its resorts’ ability to generate cash flows to repay its debt, fund capital expenditures, and retain excess cash flows for future development.

MGM invests in resorts through newly remodeled hotel rooms, restaurants, entertainment, and other amenities.

In the next part of the series, we’ll discuss MGM’s operations.

Article continues below advertisement
Article continues below advertisement

Latest Las Vegas Sands Corp News and Updates

    Opt-out of personalized ads

    © Copyright 2024 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.