Latest news with #BillHornbuckle
5 days ago
- Business
Las Vegas is hurting as tourism drops. Are Canadians behind the Sin City slump?
After doing gangbuster business in the post-COVID era, Las Vegas is in the midst of a slump, with the number of tourists down sharply as Canadians in particular avoid Sin City amid bilateral bad blood over trade. The total number of visitors is off more than 11 per cent year-over-year, according to data (new window) from the Las Vegas Convention and Visitors Authority, one of the most dramatic declines in recent memory outside of the pandemic. Airline figures reveal there's been an even steeper decline among Canadians going to the desert gambling mecca. The number of Air Canada passengers dropped by 33 per cent in June compared to the same month last year, airport figures show (new window) . WestJet, the largest Canadian air carrier at the region's Harry Reid International Airport, saw a similar 31 per cent drop. The decline was even more dramatic for low-cost carrier Flair, which saw its passenger numbers fall by a stunning 62 per cent. Enlarge image (new window) Source: Harry Reid International Airport Photo: CBC Some U.S. travellers are also avoiding the self-described entertainment capital of the world — due, in part, to a backlash over higher fees and fewer perks for some gamblers. But resort operators say the Canadian boycott has been a notable hit to the bottom line. On a quarterly conference call with investors last week, MGM Resorts president and CEO Bill Hornbuckle said the number of Canadian visitors started to fall earlier this year — around the time U.S. President Donald Trump launched his trade war — and there hasn't been much of a rebound. That company owns some of the city's top properties, such as Aria, Bellagio and the Cosmopolitan and part of the NHL rink, T-Mobile Arena. International visitation has been an issue, Hornbuckle said. Particularly earlier in the year, with Canada, we host a lot of hockey games, and we saw visitation down. And I think — I don't think, I know — it's still down, he said. Enlarge image (new window) Visitors watch a Fountains of Bellagio water show on Aug. 7, 2025, in Las Vegas. / Justin Sullivan Thomas Reeg, the CEO of Caesars Entertainment, another major resort and gaming company that owns properties up and down the Strip, pointed to Canadians as one reason for the company's disappointing second-quarter results. International business, particularly Canadian, is softer, he said on a call with stock analysts. Explaining why fewer rooms were filled with guests over the last three months, Reeg said, Canadians are a significant piece of that. Local union leaders (new window) have even taken to calling the dip in Canadian tourists the Trump slump. Enlarge image (new window) A view of the Las Vegas Strip in August. Unemployment in the city surged to 5.8 per cent in June, the third-highest among major U.S. metropolitan areas with populations exceeding one million. / Justin Sullivan Canadians cite Trump's 'disrespect' Winnipeg resident Martyn Daly is one of those visitors who's staying away. In an interview with CBC News, Daly said he and his wife typically go to Vegas once a year, but he can't bring himself to do it this year with the trade war raging. We're pretty upset with what's going on in the U.S. and the disrespect that's been shown by the Trump administration towards Canada. I just feel obliged to do something — and one little thing I can do is not patronizing a place we enjoy, he said. It's not a good idea to be spending any of our hard-earned money in the States. I can spend it elsewhere with a clear conscience. He's also leery of what he may face at the Canada-U.S. border amid reports some travellers are being held up for questioning or, in some rare instances, detention (new window) . Enlarge image (new window) Guy Kerbrat says he and his wife, Karen, are 'Vegas-goers. It's a destination we enjoy.' But they've decided to boycott travel to the city as a result of Donald Trump's trade tactics. Photo: Supplied by Guy Kerbrat Guy Kerbrat, of Regina, cancelled a long-planned trip to Vegas to see an AC/DC concert to protest Trump's treatment of Canada. The thought of going down there right now — it doesn't make you feel warm and fuzzy. We just couldn't do it, Kerbrat said in an interview. My wife and I, we are Vegas-goers. It's a destination we enjoy. But we looked at each other and said, 'We can't support Trump and these policies that are so anti-Canadian.' I hate to hurt the people, the workers who aren't supportive of what Trump's doing, but we had to take a stand, he said. Economic hardship There's evidence that Nevadans are facing some economic challenges as a result of these disruptions. Nevada's unemployment rate, at 5.4 per cent, is the highest among the states (new window) and second only to Washington, D.C., where there have been Trump-induced federal layoffs. One of Nevada's U.S. senators, Catherine Cortez Masto, was part of a bipartisan delegation to Ottawa last month to meet with Prime Minister Mark Carney to try and patch up relations amid what she called the chaos of the Trump presidency. Enlarge image (new window) U.S. Sen. Lisa Murkowski, second from left, Sen. Ron Wyden and Sen. Catherine Cortez Masto listen to Sen. Maggie Hassan, left, as she speaks with media following a meeting with Prime Minister Mark Carney on Parliament Hill in Ottawa on July 21, 2025. Photo: The Canadian Press / Adrian Wyld The Democrat said cratering tourism is having an impact and she wants to see de-escalation to normalize visitor numbers to the Silver State. Local politicians have good reason to be anxious about the Canadian travel boycott, said Stephen Miller, an economics professor at University of Nevada, Las Vegas. As the director of the university's business and economic research centre, he crunched the numbers and found Canadians contributed $3.6 billion US to the local economy last year. Canadian spending supported some 43,000 jobs in the region, more than those employed in the manufacturing sector, Miller said. That $3.6-billion figure comes close to the economic output of the local Nellis Air Force base — and that's saying something, given it's one of the largest and most important military installations in the U.S., with some 15,000 personnel. The Canadian numbers have gone down dramatically and it's an area of concern for the casinos, Miller said. After all, the main goal of the resort industry is to put heads in beds. A view of some of the hotels and resorts on the Las Vegas Strip on Jan. 27, 2025. Photo: Reuters / Kirby Lee/Imagn Images He expects more promotional activity in the weeks ahead to try and break the patriotic boycott. You might get people saying, 'Oh wait a minute, that's a really tempting offer. Let me reconsider my decision.' Daly said he's already received exceptionally good offers with low room rates to try and lure him back. But he's not budging. I know Canada is small but we do have a voice, and I think it's great that we're using it, he said. I think the only thing that Trump seems to understand is when people take action that hits them in the pocketbook. John Paul Tasker (new window) · CBC News · Senior reporter J.P. Tasker is a journalist in CBC's parliamentary bureau who reports for digital, radio and television. He is also a regular panellist on CBC News Network's Power & Politics. He covers the Conservative Party, Canada-U.S. relations, Crown-Indigenous affairs, health policy and the Senate. You can send story ideas and tips to J.P. at Follow J.P. on X (new window)
Cision Canada
26-06-2025
- Business
- Cision Canada
MGM YONKERS SUBMITS COMMERCIAL CASINO LICENSE APPLICATION IN NEW YORK
Application highlights transformative vision for Empire City YONKERS, N.Y., June 26, 2025 /CNW/ -- MGM Yonkers Inc., a subsidiary of MGM Resorts International (NYSE: MGM), today submitted its commercial casino license application to the New York Gaming Commission and the Gaming Facility Location Board, with a $2.3 billion proposal to transform its historic Empire City Casino site into a commercial casino and entertainment destination. The development plans have been thoughtfully curated to achieve the maximum benefits for the State of New York, City of Yonkers and surrounding counties, while also meeting the needs of the local community. MGM Yonkers' plans include the full renovation and expansion of Empire City Casino's existing gaming areas, an expansive high-limit lounge and the addition of a state-of-the-art BetMGM Sportsbook offering retail sports betting. The plan also envisions the addition of a 5,000 person maximum capacity entertainment venue and accompanying meeting space which will welcome a variety of A-list and local performances with the design flexibility to accommodate special events, local graduations and other community needs. Additionally, three new full-service restaurants and the renovation of existing food and beverage venues will provide high-concept dining options for guests. A parking garage with solar energy arrays and electric vehicle parking spaces are among features that demonstrate MGM Resorts' strong commitment to sustainability. If MGM Yonkers is awarded a commercial casino license, it anticipates completing all project elements by mid-2029. "Empire City Casino and Yonkers Raceway have anchored the entertainment and tourism culture in downstate New York for more than a century. Achieving a full casino license will ensure this site will continue to be a cultural and economic force for generations to come," said Bill Hornbuckle, President and CEO of MGM Resorts International. Empire City's role in the community and local economy Since opening in October 2006, Empire City Casino has generated more than $5 billion for New York State education, including $1.6 billion since MGM Resorts assumed ownership in 2019. MGM Yonkers' casino application details the significant financial benefit the City of Yonkers, New York's third-largest city, and the surrounding counties would receive from this project as part of the revenue share formula. If a license is awarded to Empire City, 20% of the generated tax revenue will be distributed with 10% directed to the City of Yonkers, 5% to Westchester County and 5% divided between Rockland and Putnam counties. The proposal estimates the project will ultimately create thousands of direct, induced and indirect jobs through the new economic activity that the commercial casino license would generate for the region. MGM Resorts has a strong track record of being an employer of choice by providing career pathways, supporting higher education and prioritizing responsible business practices through programs like GameSense, an industry-leading responsible gaming educational tool. Other highlights of MGM Yonkers' application include significant investments to support public infrastructure in the City of Yonkers, including improvements to roads, water lines and traffic technology. Energy efficient methods to conserve water and harness solar energy are also an integral part of the proposal, since building and sustaining the communities in which MGM Resorts operates is a core belief of the Company. ABOUT EMPIRE CITY CASINO BY MGM RESORTS Empire City Casino by MGM Resorts is one of the largest entertainment and gaming destinations in the northeast. Featuring nearly 4,700 of the hottest slots, electronic three card poker, blackjack, craps, roulette, baccarat and sic bo table games, Empire City Casino also offers guests year-round harness racing and international simulcasting; live entertainment including the best party, tribute, and Latin bands; New York's hottest DJ's, and more. A selection of dining options will satisfy even the most discerning palate with fan-favorite fare at The Pub, and convenient delicious options at Lil' Cocina and the Big Kitchen International Food Court. Visit Empire City Casino by MGM Resorts located at 810 Yonkers Avenue (off I-87 at Central Avenue) Yonkers, NY, Westchester County, open seven days a week from 10:00 a.m. to 6:00 a.m. Empire City Casino is an indirect wholly owned subsidiary of MGM Resorts International (NYSE: MGM). For more information, visit or call 914.968.4200. ABOUT MGM RESORTS INTERNATIONAL MGM Resorts International (NYSE: MGM) is an S&P 500® global gaming and entertainment company with national and international locations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. MGM Resorts creates immersive, iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 31 unique hotel and gaming destinations globally, including some of the most recognizable resort brands in the industry. The Company's 50/50 venture, BetMGM, LLC, offers sports betting and online gaming in North America through market-leading brands, including BetMGM and partypoker, and the Company's subsidiary, LV Lion Holding Limited, offers sports betting and online gaming through market-leading brands in several jurisdictions throughout Europe and Brazil. The Company is currently pursuing targeted expansion in Asia through an integrated resort development in Japan. Through its Focused on What Matters philosophy, MGM Resorts commits to creating a more sustainable future, while striving to make a bigger difference in the lives of its employees, guests and in the communities where it operates. The global employees of MGM Resorts are proud of their company for being recognized as one of FORTUNE® Magazine's World's Most Admired Companies®. For more information, please visit us at Please also connect with us @MGMResortsIntl on X as well as Facebook and Instagram. FORWARD-LOOKING STATEMENTS Statements in this release that are not historical facts are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, and involve risks and/or uncertainties, including those described in the Company's public filings with the Securities and Exchange Commission. Forward-looking statements can be identified by the use of forward-looking terminology such as "believes," "expects," "could," "may," "will," "should," "seeks," "likely," "intends," "plans," "pro forma," "projects," "estimates" or "anticipates" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. The Company has based forward-looking statements on management's current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, the Company's expectations regarding the amount of the investment in the project, the timing to complete the project elements, the scope of the design and expected amenities and the benefits the project may bring to the City of Yonkers. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise, and the Company may not be able to realize them. These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include risks related to the economic and market conditions in the markets in which the Company operates and competition with other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, risks relating to international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions and additional risks and uncertainties described in the Company's Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports). In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.
Yahoo
26-06-2025
- Business
- Yahoo
The Top 5 Analyst Questions From MGM Resorts's Q1 Earnings Call
MGM Resorts' first quarter results met Wall Street's revenue expectations but drew a modestly negative market reaction, as sales declined compared to last year and operating margins compressed. Management attributed the softer revenue to challenging year-ago comparisons, particularly with last year's Super Bowl impact, and incremental weather disruptions at regional properties. CEO Bill Hornbuckle emphasized the company's progress in growing its digital business and loyalty program, noting, 'Our MGM Rewards program crossed 50 million members, reflecting the staying power of MGM's iconic brands.' Is now the time to buy MGM? Find out in our full research report (it's free). Revenue: $4.28 billion vs analyst estimates of $4.27 billion (2.4% year-on-year decline, in line) Adjusted EPS: $0.69 vs analyst estimates of $0.46 (51.5% beat) Adjusted EBITDA: $637.1 million vs analyst estimates of $1.14 billion (14.9% margin, 44.2% miss) Operating Margin: 9%, down from 10.5% in the same quarter last year Market Capitalization: $9.22 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Brandt Montour (Barclays) asked about demand trends in Las Vegas, and CFO Jonathan Halkyard described record April occupancy and strong event demand, crediting the Marriott partnership and group bookings. Carlo Santarelli (Deutsche Bank) inquired about labor cost management, with Halkyard noting a reduction in full-time employees and increased use of digital interfaces to improve efficiency. David Katz (Jefferies) asked about cost variability in Japan, and Halkyard explained that the company has built in contingencies and hedged currency exposure, minimizing future cost uncertainty. Shaun Kelley (Bank of America) questioned investment pacing in Brazil's digital launch, and Halkyard outlined a front-loaded marketing spend, expected to taper as the business matures over the next two quarters. John DeCree (CBRE) asked about balancing share repurchases with rising capital needs, and Halkyard stated that future buybacks will be moderated to prioritize funding for Japan and potential New York commitments. The StockStory team will be watching (1) progress on the Osaka resort construction and New York casino license application, (2) continued profitability and user growth in BetMGM and MGM Digital's Brazil operations, and (3) sustained margin discipline as capital expenditures rise. Additionally, we will monitor the impact of new suite and villa offerings in Macau and the performance of the Marriott partnership in driving Las Vegas occupancy. MGM Resorts currently trades at $33.67, up from $31.44 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
MGM Q1 Earnings Call: Digital Turnaround and International Expansion Take Center Stage
Hospitality and casino entertainment company MGM Resorts (NYSE:MGM) met Wall Street's revenue expectations in Q1 CY2025, but sales fell by 2.4% year on year to $4.28 billion. Its non-GAAP profit of $0.69 per share was 51.5% above analysts' consensus estimates. Is now the time to buy MGM? Find out in our full research report (it's free). Revenue: $4.28 billion vs analyst estimates of $4.27 billion (2.4% year-on-year decline, in line) Adjusted EPS: $0.69 vs analyst estimates of $0.46 (51.5% beat) Adjusted EBITDA: $637.1 million vs analyst estimates of $1.14 billion (14.9% margin, 44.2% miss) Operating Margin: 9%, down from 10.5% in the same quarter last year Free Cash Flow Margin: 7.5%, down from 8.6% in the same quarter last year Market Capitalization: $9.5 billion MGM Resorts' first quarter results were shaped by progress in its digital business and continued emphasis on loyalty programs and strategic partnerships. CEO Bill Hornbuckle attributed the company's performance to the rapid turnaround at BetMGM, robust engagement from its MGM Rewards program—which surpassed 50 million members—and strong contributions from the Marriott partnership in driving hotel occupancy. Management also pointed to record March results in key metrics, particularly on the Las Vegas Strip, and highlighted the ability of certain segments to generate adjusted EBITDA margins at or above 30%. Looking ahead, management emphasized ongoing investments in international projects and digital expansion. Hornbuckle noted, 'Our digital businesses in the US and beyond are growing and turning profitable,' and described the company as well positioned for future growth with a pipeline that includes new developments in Japan and potential opportunities in New York. CFO Jonathan Halkyard reinforced the focus on operational agility and disciplined capital allocation, indicating that while share repurchases have been aggressive, capital will be reserved for large-scale projects moving forward. Management's remarks highlighted several operational levers and strategic initiatives that shaped the quarter's financial performance. The company noted that digital segment gains, loyalty program expansion, and new partnerships were key contributors, while cost discipline and international investments continue to play central roles. Digital turnaround at BetMGM: The BetMGM business reported a 34% increase in net revenue and positive EBITDA, reversing prior losses. Management credited a more targeted approach to customer acquisition and improved engagement in both iGaming and online sports. Loyalty program growth: MGM Rewards reached 50 million members, up over 50% since 2020. Hornbuckle called this database growth unmatched among mature gaming peers and tied it directly to omnichannel opportunities, particularly in leveraging the Marriott partnership. Marriott channel drives occupancy: The Marriott partnership delivered over 440,000 room nights through April, with management describing these guests as highly accretive and supportive of record first quarter slot win. Group customers now also earn Marriott Bonvoy points, further boosting appeal for conventions. International expansion momentum: The company made progress in Japan by finalizing contractor agreements and breaking ground in Osaka, with management remaining confident in the project's high-teens percentage return potential. In Macau, MGM China maintained a mid-teens market share and increased its dividend payout policy. Cost discipline and digital efficiency: The company reduced full-time equivalent employees across regions, aided by increased use of digital customer interactions for services like concierge and call centers. Management indicated that such digital interfaces handle a significant portion of initial traffic for these services, helping contain labor costs, with AI adoption noted as an emerging element. MGM Resorts' forward outlook centers on digital profitability, international project execution, and the ability to drive operating efficiency amid shifting macroeconomic conditions. Digital business scaling: Management expects continued profitability improvements from BetMGM and international digital operations, with Brazil seen as an early bright spot and further product launches planned. International projects ramping up: The Osaka integrated resort in Japan and potential New York casino license are expected to require significant capital outlays, with management aiming for high return on investment. The company has hedged most of its equity commitment to Japan to limit currency risk. Operational cost control focus: Ongoing use of digital tools and process automation is expected to help manage labor expenses and support margin stabilization, even as inflation and tariffs present near-term headwinds. Brandt Montour (Barclays): Asked how Las Vegas demand trends are evolving in April and about the impact of lower Canadian inbound travel. Management replied that overall demand remains strong due to group and event bookings, and Marriott partnership offsets softer Canadian leisure travel. Carlo Santarelli (Deutsche Bank): Questioned whether lower payroll growth reflects cost savings initiatives. Management confirmed ongoing efforts to manage labor costs, including headcount reductions and increased digital interactions with customers. David Katz (Jefferies): Sought clarity on cost variability for the Japan project given material price risks. Management noted contingencies are built into budgets and emphasized scope certainty before construction begins. Shaun Kelley (Bank of America): Asked about investment cadence in Brazil's digital launch and future capital allocation as large projects ramp up. Management stated that marketing spend in Brazil is concentrated in the first half of the year and future share repurchases will be balanced against project funding needs. Chad Beynon (Macquarie): Probed sensitivity of non-gaming revenue trends and the potential impact of tariffs on future capital projects. Management said non-gaming trends are stable, and tariffs are not expected to materially impact near-term development plans. In coming quarters, the StockStory team will be watching (1) the continued profitability and user growth of BetMGM and the broader digital portfolio, (2) progress on the Osaka project's construction milestones and Japan's regulatory environment, and (3) evidence that the Marriott partnership and loyalty expansion sustain higher occupancy and slot metrics. Execution against these markers will be crucial as capital commitments rise and competitive dynamics shift. MGM Resorts currently trades at a forward P/E ratio of 15.6×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
Skift
05-05-2025
- Business
- Skift
MGM Sets Date for Dubai Resort
MGM has been trying to enter the UAE since 2006, but something has always gotten in the way. This time seems different. MGM Resorts CEO and President Bill Hornbuckle said the company's Dubai project will finally be ready in the third quarter of 2027. If the timeline holds, it will mark the end of a 20-year effort to establish a foothold in the UAE. 'That building [the MGM in Dubai] is due to complete third quarter of '27. We are literally up on the fifth floor of the MGM Tower as we speak,' Hornbuckle told investors during the company's first-quarter earnings call on April 30. The development is known as 'The Island' and the plan includes three MGM brands — Aria, MGM, and Bellagio — combined into a 1,400-room beachfront resort. A 'Dubai Sphere' is also part of the plan. The project was originally announced in 2017 by Dubai's ruler, and has moved slowly. And MGM's efforts to enter the UAE date back to 2006 when MGM announced a new partnership with Abu Dhabi government developer Mubadala to explore opportunities. A render of MGM's 'The Island' project in Dubai A 20-Year History In 2007, MGM and Mubadala announced plans for a $3 billion non-gaming resort in Abu Dhabi with a projected 2012 opening. In 2011, Abu Dhabi officials said the project was still 'under review' and it has not been mentioned publicly since by either party. Also in 2007, Dubai World, the emirate's state-owned investment company, acquired a 9.5% stake in MGM Resorts (then MGM Mirage) and formed a joint venture aimed at building the $8.5 billion CityCenter complex in Las Vegas, with Dubai World holding a 50% stake through its subsidiary Infinity World Development Corp. The JV did not include plans to build projects in the UAE. In 2009, MGM announced its own project in Dubai, with plans for a 250-room Bellagio, a 350-room MGM Grand, and a Skylofts hotel as part of the Pearl Dubai development near Palm Jumeirah. The project never took off. The land remained largely undeveloped, and in 2023, the Dubai government repossessed the site and demolished all partially built structures. The land remains vacant, with no announced plans for reuse. MGM bought out Dubai World's stake in their joint venture in 2021 for $2.1 billion, and later sold parts of the real estate portfolio to Blackstone in a $3.8 billion deal. The New Gaming Landscape The 2027 target date for The Island coincides with a broader shift in the UAE's stance on gaming. Wynn Resorts is on track to open its integrated resort with a casino in Ras Al Khaimah — about an hour from Dubai — in early 2027. Wynn already holds a gaming license and is positioning the property to attract customers from Dubai and Abu Dhabi. Asked about MGM's own efforts to secure a license, Hornbuckle told investors that the decision rests entirely with local leadership. 'It's completely in their hands,' he said on the earnings call, referring to the UAE's seven sheikhs. 'This is just like the [United] States. It's in the province of any one of the individual rulers to determine whether they want gaming or not. They haven't said yes, they haven't said no.' The UAE established its federal gaming regulator — the General Commercial Gaming Regulatory Authority (GCGRA) — in 2023. In September 2024, Hornbuckle confirmed that MGM had submitted an application for a gaming license in Abu Dhabi. In November, the GCGRA stated it was in no rush to expand the casino sector beyond Wynn's project, signaling that the company may hold a monopoly for several years. CBRE estimates the gross addressable market of casinos in the UAE at upwards of $8.5 billion. This would suggest the UAE casino market would be similar in size to the Las Vegas Strip and 50%-70% larger than Singapore's current casino industry. Why This Time Might Be Different Despite the delays, several developments suggest that MGM's Dubai resort may finally cross the finish line. In late 2023, Wasl Asset Management — the local developer backing the project — awarded a $1.2 billion construction contract to China State Construction Engineering Corporation to build The Island. The GCGRA is chaired by Jim Murren, former chairman and CEO of MGM Resorts and Hornbuckle's former boss. The GCGRA board also includes William W. Grounds, the former president and COO of Infinity World Development Corp. Grounds was also on MGM's board when Murren was CEO. Hornbuckle said on the call that he and a team had just met with the Dubai prince. "[Our] mission [when in Dubai] was to see the prince and to update him on our project, tell him the opportunity that we thought it could bring, not only in the context of a fully integrated resort like we're building MGM, Aria, Bellagio, but the potential gaming could bring to not only UAE, but Dubai specifically and the whole notion of entertainment and the kind of unique things that we could bring to the city."
