MGM Resorts Predicts a Slight Drop in Conventions on the Las Vegas Strip in 2024

By John Isaac,
Editor at online-gambling.com

John Isaac Editor at online-gambling.com

John Isaac is an editor with many years of experience in the gambling industry. He writes expert articles on card games like blackjack and poker. In addition, he is also well aware of the US gambling laws and the Indian and Dutch gambling markets. You can rely on verified information and insightful details.

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Last updated: March 29, 2023

Representatives from MGM Resorts International (NYSE: MGM) have predicted a minor decrease in conventions, meetings, and other events on the Las Vegas Strip in 2023. Nevertheless, they foresee a greater return to activity in 2024 and 2025. These forecasts were deliberated at the J.P. Morgan Gaming, Lodging, Restaurant & Leisure Management Access Forum by MGM COO Corey Sanders and the company’s Senior Vice President of Corporate Finance, Sarah Rogers.

According to Sanders, the company’s bookings have returned to pre-pandemic levels, with reservations hitting 50%, or one to three months out. Additionally, the increase in the pricing of MGM’s booking rooms is not negatively impacting consumer demand, he stated.

MGM Forecasts a Strong Return to Activity in 2024 and 2025 for Las Vegas Tourism

Sanders claims that MGM will host fewer conventions this year than usual, primarily as a result of tactical choices. For instance, the company won’t fill its buildings with conventions on weekends. Additionally, the $100 million renovation at the Mandalay Bay Convention Center is causing some convention business to shift to other venues. However, Sanders predicts that 2023 will be a good year for MGM’s Strip convention business, with a brighter outlook for 2024 and 2025.

While some analysts have expressed concerns about macroeconomic headwinds, such as inflation and rising interest rates, negatively affecting Las Vegas tourism, these fears have yet to come to live. ?Nevada casinos have been displaying monthly gross gaming revenue in excess of $1 billion for nearly two years. However, there have been complaints about operators nickel-and-diming guests with resort fees and parking costs, which could threaten the city’s value proposition.

MGM Maintains Value Proposition While Prioritizing Digital Gaming Growth

According to Rogers from MGM, the company is aware of the significance of Las Vegas retaining its reputation as an affordable destination. The company still offers relative value, although the gap has decreased somewhat. MGM has sustained this value proposition by continuing programming, improving its products, and offering suite accommodations. Sanders noted that much of the increased traffic at Harry Reid International Airport in Las Vegas is due to economy carriers, making travel costs to the casino hub affordable for a wide range of customers.

He also discussed the advantages that MGM’s land-based casinos, including those on the Strip, accrue from the company’s 50% interest in BetMGM. Casino marketing employees are encouraged to sign up customers for BetMGM, and the operator gains permission to its client database. Sanders did not discuss the chance of MGM acquiring Entain outright or buying out its 50% stake in BetMGM.

The MGM COO also stated that the growth of digital gaming is a priority for MGM, but he did not reveal whether additional expansion will participate in that growth plan. Therefore, what will happen next in terms of MGM’s expansion is yet to be seen. An interesting fun fact to know is that Corey Sanders has been in the company for over two decades, while holding the position of COO since 2010.