MGM Resorts International
MGM Resorts International, through its subsidiaries, operates as a gaming and entertainment company in the United States, China, and internationally. It operates through four segments: Las Vegas Strip Resorts, Regional Operations, MGM China, and MGM Digital. The company operates casino resorts that offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities, as well as online/digital games through its online platforms. Its casino operations include slots and table games, as well as live dealer, online sports betting, and iGaming through BetMGM. The company's customers include premium gaming customers; leisure and wholesale travel customers; business travelers; and group customers, including conventions, trade associations, and small meetings. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was incorporated in 1986 and is based in Las Vegas, Nevada.
What does it do?
MGM Resorts International runs some of the most famous hotels and casinos in the world — think the Bellagio, MGM Grand, and Aria on the Las Vegas Strip. You walk in, gamble at the slot machines or card tables, stay in a hotel room, catch a concert, and eat at a celebrity chef restaurant. They also operate casinos in places like Mississippi, Maryland, and Macau, China. On top of that, they have a growing online sports betting and gaming app called BetMGM.
Las Vegas has bounced back strongly from the pandemic era, with record visitor spending making MGM a barometer for how confident Americans feel about splurging on travel and entertainment. BetMGM puts MGM in the middle of the fast-growing US online gambling market, which is still being unlocked state by state. With a $13 billion market cap, MGM is one of the few pure-play ways for everyday investors to bet on both physical casinos and digital gambling in one stock.
How does it make money?
MGM pulls in $17.5 billion a year in revenue across four main buckets. The Las Vegas Strip resorts are the crown jewel — hotel rooms, casino floors, dining, and entertainment all generate cash under one roof. Regional casinos across the US add a steadier, locals-focused revenue stream. MGM China (primarily MGM Macau and MGM Cotai) taps into high-roller gambling from mainland Chinese visitors. BetMGM, their online sports betting and iGaming platform, is the newest revenue engine, though it is still in growth mode and not yet consistently profitable.
Why do investors care?
The bull story here is really two stories in one: a world-class physical casino empire and a digital gambling business that could be worth billions on its own. BetMGM already holds roughly 15-17% of the US online sports betting market, competing with DraftKings and FanDuel. Meanwhile, Macau is recovering as China eases travel, which could unlock significant upside in MGM China. The catch is that net income is a thin $0.2 billion on $17.5 billion of revenue, so MGM needs to convert its revenue scale into real profit growth for the stock to re-rate higher.
Deep Dive
MemberA full investor briefing on MGM Resorts International — history, leadership, risks, and outlook.