MGM CEO Steady Amid Vegas Slump, New York Exit

MGM Resorts International CEO Bill Hornbuckle is defending the company’s disciplined investment strategy after the casino operator’s shares fell in after-hours trading Wednesday. The drop came as soft Las Vegas results and the company’s surprise withdrawal from the New York casino bidding process overshadowed stronger-than-expected overall revenue.

During MGM’s third-quarter earnings call, Hornbuckle said the company’s recent decision to step away from the race for a downstate New York casino license reflected a cautious approach to capital deployment. MGM had been considered a frontrunner for one of three licenses the state plans to award.

“While we initially liked the return, it got tighter and tighter so much so that given overall market conditions, we think it’s capital best spent in some other location and some other opportunity,” Hornbuckle told analysts.

 

• MGM withdraws from New York bid: The company took a $256 million impairment charge after exiting the state’s casino race, citing reduced returns under new licensing terms.

• Las Vegas softness hits earnings: Lower visitation, weaker table hold, and ongoing renovations led to a 5% revenue dip on the Strip and falling earnings per share.

• Focus shifts to Japan: MGM is channeling investment toward its $8.9 billion Osaka resort, set to open in 2030, as a long-term growth driver.

 

Las Vegas Weakness Continues

MGM’s results mirrored a broader slowdown across the Las Vegas Strip, where tourism and gaming volumes have been under pressure for most of 2025. According to the Las Vegas Convention and Visitors Authority, September visitation dropped 8.8% year-over-year to about 3.1 million — the ninth consecutive monthly decline.

Hornbuckle cited several headwinds, including a drop in international visitors, Spirit Airlines’ bankruptcy, and increased traffic congestion from Southern California. “While we don’t expect the dynamic to be changed overnight, we are proactively working to create initiatives and draw incremental visitation,” he said.

Across MGM’s Strip properties, revenue fell to $2 billion from $2.1 billion in the same quarter last year. The company blamed the decline on a room renovation program at MGM Grand, lower food and beverage revenue, weaker table hold, and reduced revenue per available room. Adjusted EBITDAR for the segment fell to $601 million from $731 million a year ago. Caesars Entertainment reported similar softness earlier in the week, citing a 5% drop in occupancy and lower table-game win rates. Analysts said MGM’s results were largely consistent with those trends.

For the quarter ended September 30, MGM posted net revenue of $4.3 billion, slightly ahead of Wall Street forecasts of $4.2 billion. Earnings per share came in at $0.24, below both the $0.54 posted a year earlier and analyst estimates of $0.37. In after-hours trading, MGM shares fell about 8% to $28.70 before recovering some ground Thursday to trade near $31. The stock remains down more than 10% year-to-date.

Analysts were mixed on the results. Barry Jonas of Truist Securities trimmed his price target to $47 a share, citing the Vegas headwinds but noting that MGM’s diversification into digital gaming, regional casinos, and China offers support. Macquarie’s Chad Beynon maintained an “outperform” rating while lowering his target to $45, emphasizing MGM’s strong balance sheet. MGM’s decision to withdraw from the New York casino process led to a $256 million non-cash goodwill impairment charge and an additional $93 million in write-offs tied to MGM Empire City in Yonkers. Hornbuckle said the move followed newly issued state guidance that shortened the potential license term from 30 years to as little as 15 years, materially changing the expected returns.

MGM Empire City had reached a preliminary agreement with Yonkers for a minimum tax contribution of $400 million. Competing bidder Resorts World NYC set much higher proposed tax rates — 56% on slots and 30% on table games — further complicating the economics for MGM.

With New York off the table, MGM is turning its focus to Japan, where it is developing the $8.9 billion MGM Osaka resort, slated to open in 2030. The company recently secured a $300 million credit facility to fund part of the project, with an option to increase it to $450 million. Chief Financial Officer Jonathan Halkyard said investor interest in the project remains strong, and Hornbuckle framed Osaka as central to MGM’s next phase of growth.

 

While we initially liked the return, it got tighter and tighter so much so that given overall market conditions, we think it’s capital best spent in some other location and some other opportunity.

Investor Outlook

Despite the share slump, MGM executives struck an optimistic tone. Hornbuckle emphasized that MGM’s cost structure in Las Vegas is more efficient than ever and pointed to BetMGM — the company’s online gaming joint venture — as a key driver of long-term value.

“We have a better cost structure than we’ve ever had in Las Vegas,” Hornbuckle said. “With the dynamism in this market, I think that that’s an unlock for the stock.”

While MGM’s near-term challenges mirror those across the casino sector, analysts said its global portfolio and conservative investment posture could position it well once Las Vegas demand stabilizes. For now, investors appear to be taking a wait-and-see approach as the company rebalances its bets — this time, with Japan in focus and New York in the past.