Canadian Stars Group Acquires Sky Betting & Gaming for $4.7 Billion [...]
MGM Not Planning New Casinos in Las Vegas
- June 16, 2015 By Nemanja L. -
MGM Resorts have finished their expansion plans when it comes to building new gaming establishments on the Las Vegas Strip, according to company CEO Jim Murren.
Murren does not think that spending billions on yet another Las Vegas casino would be a good business decision and he claims that the firm instead has other plans on their agenda.
MGM Runs 13 Properties on Las Vegas Strip
One of the leading US gaming companies boast a total of 13 properties on the Las Vegas Strip, more than any other operator, and it would appear they will not be adding to the portfolio in the future.
Some of their very successful establishments include MGM Grand Hotel & Casino, which recently hosted the Fight of the Century between Floyd Mayweather and Manny Pacquiao, Mandalay Bay Resort and Casino, The Mirage and Bellagio Hotel & Casino.
The MGM Resorts CEO believes that casino floors will be shrinking rather than expanding in the future, and predicts that gaming will no longer be the main driving force bringing people from all over the USA to Las Vegas.
As the balance of Las Vegas visitors continues to shift towards a younger crowd, these new tourists do not spent too much time on the casino floor, but tend to enjoy other perks and benefits that the gaming hub can offer.
Focus Shifts to Non-Gaming
This has prompted MGM to make a serious U-turn in their business strategy as the firm is now focused on developing the environment around their existing buildings and making it as alluring as possible for customers.
Most of these new projects have little to do with gambling, as witnessed by the upcoming expansion of Mandalay Bay Convention Center, the new Park retail and dining district as well as two outdoor locations designed to host music festivals such as May’s Rock in Rio that was visited by over $160,000 people, with only 15 percent of that number local residents.
At the same time, MGM is dedicated to developing the long-awaited mobile sportsbook, thus following in the footsteps of William Hill, Station Casinos, South Point, Boyd Gaming and CG Technology that already allow sports betting on the move.