MGM Resorts is the king of the Las Vegas Strip, with more casinos there than any other operator. Now Chief Financial Officer Jonathan Halkyard says the company could grow its presence on the boulevard’s south end.
According to Casino.org, Halkyard told the Morgan Stanley Virtual Global Consumer & Retail Conference that the company may add a brand-new casino resort on Strip-facing acreage near Excalibur. To do so, it would need clearance from MGM Growth Properties, the real estate investment trust (REIT) of MGM Resorts, which owns the land and physical assets of each of the Las Vegas casinos.
MGM now operates Mandalay Bay, Luxor, Excalibur, New York-New York, Park MGM and MGM Grand on the Strip, and announced in September that it would pay the Blackstone Group $1.6 billion to acquire the operational rights to the Cosmopolitan.
Halkyard said “the energy on the Strip” is on that stretch of the thoroughfare, which is home to T-Mobile Arena and Allegiant Stadium.
“That’s our neighborhood,” Halkyard said. “The reality is—and not many people appreciate this—that there’s a substantial opportunity for our company to do additional development in that area … There’s seven acres in front of the Excalibur. That’s equal to the entire footprint of the Cosmopolitan. I’m not suggesting we’re going to build a 3,000-room tower there, but that’s a significant development opportunity potentially.”
Halkyard said the gaming industry in Las Vegas continues strong despite the continued impact of Covid-19. Strip gaming revenues were up 30 percent in October compared to 2019.
“I think those revenues are sustainable for different reasons,” Halkyard said. “We’re seeing an elevated level of spend from both rated and unrated players. Much of this is due to our marketing communications and the strength of our brand.” He also expects the meeting and convention side to rebound “to historic levels” by the end of 2022. “We’re delivering these record results with one hand tied behind our backs,” he said.
A full-fledged casino in New York would be a “significant opportunity for the company,” allowing Empire City to introduce table games. “Between our operations in Atlantic City and database for Las Vegas and of course our digital offerings, having a full-fledged brick-and-mortar casino in New York would be very appealing.”
