MGM Resorts CEO prioritizes digital advancement as key area of focus by 2025.
Loose Cannon Chat: MGM Resorts' CEO Bill Hornbuckle spilled the beans on the company's ambitious plans for the future, revealing their focus on digital expansion, new markets, and a staggering $2.5 billion goal for BetMGM in 2025. Here's the gist of it all:
Digital Dominance: MGM Resorts is aiming high, with a focus on pushing their BetMGM business to reach the lofty heights of $2.5 billion by 2025. To achieve this, they're planning to conquer the digital gaming world, targeting new states that may legalize igaming in the near future.
Global Focus: It's not just about the U.S. Las Vegas takes a back seat as MGM eyes expansion in New York City, Brazil, and Japan. They're also keeping a keen eye on opportunities in Thailand, although things might move a bit slower there.
Brazil on the Horizon: MGM isn't resting on its laurels in North America. They've got their sights set on the lucrative Brazilian market, where they aim to excel and grow BetMGM into a billion-dollar business. They'reabout to dial up their efforts down there in the next few weeks.
Moving Forward: MGM's projects in Japan and New York are moving ahead, with the Osaka integrated resort ready for finalization of construction and pricing, and MGM gunning for a casino license in New York. They're also staying optimistic about Thailand, hoping for some meaningful action by the first part of next year.
Financial Backing: Funding for this expansion won't be a problem, with MGM Resorts confidently approving a $2 billion share buyback program. The company is backing BetMGM's expansion with ambitious financial targets, including a pathway to $500 million annual EBITDA in coming years.
Buckle Up: MGM is serious about their plans, and they're not holding back. They've already turned a profit with BetMGM, and they're pouring capital into the venture to fuel its growth. They're reaffirming their net revenue guidance of $2.4-$2.5 billion for 2025, and they expect to exceed current projections.
Keeping it Real: MGM knows the importance of retaining their high-value customers, so they're focusing on premium-mass player retention and growing handle-per-active growth. They're also taking steps to improve segmentation and offering better pricing and enhanced parlay offerings to keep their players engaged.
Mistakes Were Made: MGM admitted they made a bit of a misstep when they spent $13 million on a television commercial in 2024. They've since scaled back on marketing and focused on improving their product instead.
::Find our latest updates on MGM Resorts, BetMGM, and the ever-evolving world of gaming at Buck Wargo's website::
- By 2025, MGM Resorts aims to push BetMGM towards a $2.5 billion mark, focusing on digital expansion and new markets.
- MGM Resorts is eyeing expansion in Japan, New York City, Brazil, and Thailand, with the Brazilian market being a lucrative target for growing BetMGM into a billion-dollar business.
- MGM Resorts is investing in technology, particularly in digital gaming, as part of their plan to conquer new states that may legalize iGaming in the near future.
- MGM Resorts is focusing on retaining their high-value customers by improving segmentation, offering better pricing, and enhancing parlay offerings in the sports betting sector.
