MGM Resorts full-year revenue rises to $11.8bn; CEO criticises Wire Act revision

By Matthew Enderby

Financial Report

MGM Resorts International saw its consolidated net revenues grow by 9% in 2018, to $11.8bn.

However, Las Vegas Strip resorts net revenues decreased 1%, while regional operations net revenues increased by 8%, with MGM China net revenues rising 32%.

Consolidated operating income for the year was $1.5bn, a 13% decrease, and net income attributable to MGM Resorts was $467m, a drop of $1.5bn.

The operator announced a 1% rise in adjusted property EBITDA from last year’s $3.3bn.

During Q4, MGM Resorts recorded net revenues of $3.1bn, an 18% increase year-on-year.

Net loss attributed to the operator was $23m, compared to the net income of $1.4bn in Q4 2017.

Jim Murren, Chairman and CEO of MGM Resorts International, said: "We had a strong finish to the year, driving growth across all Las Vegas segments in the fourth quarter. Our Las Vegas Strip Resorts achieved the best fourth quarter adjusted property EBITDA since 2007.”

Wire Act

At the end of MGM Resorts' full-year and Q4 earnings conference call, Murren also addressed the Department of Justice's (DoJ) recent reinterpretation of the Wire Act.

The MGM CEO was explicit in his response, saying: "[To say] this latest missive from the DoJ is perplexing is an understatement. It’s just, we think, an absurdly, poorly written and unenforceable opinion and I don’t think anyone in the industry, the gaming industry, the sports betting industry, feels any differently.

"If [it] reads as worded, it would mean Powerball, as it exists in 44 states in the US, isn’t legal anymore."


Share This Post


More News

The Betting and Gaming Council (BGC) has announced that Safer Gambling Week 2020 will take place from 19th to 25th November. The six-day event, a rebrand of the Responsible Gambling Week of...

It’s almost expected for any newly re-regulated market to experience a few growing pains. However, the Swedish market has had more than its fair share. Since its re-regulation on 1 January...