MGM Resorts International: Net Worth 2023, Owner, Income & Revenue

Kirk Kerkorian, a well-known businessman in Las Vegas, played a crucial role in making MGM Resorts International one of the top gaming companies in the world. The company started in 1987 as MGM Grand Inc. Then, after buying Mirage Resorts in 2000, it became MGM Mirage. Kerkorian, who used to own Metro-Goldwyn-Mayer (the namesake of MGM), led the company through considerable growth in the early 2000s. The company’s value dropped significantly during the global financial crisis of 2007-2008. In 2010, it was renamed MGM Resorts International.

Being experts in the gambling field and online casinos, the team of leafletcasino.com has researched the company and provided some valuable information on its subsidiaries, including LeoVegas. Now, let’s explore the key facts and figures that highlight the prominence of MGM Resorts International.

MGM Resorts International Net Worth

When estimating a company’s net worth, multiplying the total outstanding shares by the average share price over a particular time frame is the most common method. This gives the market capitalization or market value. From the beginning of 2023 to September of the same year, MGM Resorts achieved its highest market value of 18.287B in week 9. Here are the calculations for current deals in week 26, when the market cap fell to 16.145B:

• MGM Resorts remaining shares = 378095000.00
• Share price average for week 26 = $38.37
• The two above values multiplied = $16.147B

However, this contrasts with 2023’s lowest market cap of $14.575B, which occurred during the first week of this year. At the time of writing, the market cap has fallen even further to $13.78B. It’s essential to remember that the company also has considerable debts on its balance sheet. The total sum of both current and non-current debt is $31.74B.

Owner & Staff

A holding company, MGM Resorts, handles the operation and ownership of its casino and hotel resorts. The New York Stock Exchange publicly trades company shares under the’ MGM’ ticker. The largest shareholders are The Vanguard Group, with 9.18%; Blackrock Inc., with 5.71%; and T.Rowe Price Group, with 4.25%. Ownership structures in US companies can be very complex and opaque. However, Vici Properties owns nearly all US casino properties under the MGM Resorts brand. As such, MGM operates them via long-term lease agreements. A handful of casinos, like the Bellagio and the Cosmopolitan, are leased from Blackstone.

Since 2019, William J. Hornbuckle has been the CEO and President and has overseen domestic and international expansion. He is an industry leader sitting on the boards of many enterprises. Yet Mr Hornbuckle started his career as a room service attendant and busboy. He slowly worked his way up to the lofty heights he now enjoys. The company has 83,000 employees across 31 unique hotel and gaming destinations from Las Vegas to Macau. Its casino resorts include the Borgata, Beau Rivage, and the MGM National Harbor.

To operate its hotels and resorts around the globe, the company formed MGM Hospitality in 2007. Two years later, with plans for Chinese expansion, the company began Diaoyutai MGM Hospitality. This was to develop 5* hotel resorts. MGM Resorts announced an agreement with Marriott International in July this year. With this, all its resort properties and hotels would join Marriot’s reservation and booking system and loyalty program.

Income & Revenue

In the first half of 2023, MGM Resorts reported revenues of $15.381B for the twelve previous months ending September 30. Of this, BetMGM contributed with net revenues of $944M. For MGM Resorts, this represented a 22.15% increase over the previous year. The third quarter results show the company brought in a record $4B. This was a 16% increase on the corresponding period one year prior. This still makes MGM Resorts one of the world’s richest gambling companies. It’s worth noting that there are three main company divisions: Las Vegas, United States regional operations, and China. Lifting Chinese COVID-related entry restrictions in Macau and Cotai helped boost profits at MGM China. They have risen by 829% against the previous year’s quarterly earnings.

Though the Las Vegas Strip operations registered a net revenue of $2.1B in Q3, this was down 8%. Room and casino revenues dropped by 6% and 5%, thanks to the cost of living crisis starting to bite. In September, a 10-day cyber attack crippled the resort’s operation. Slot machines went dark, and hotel guest keys failed to work. There were elevator outages, and the MGM Resorts website crashed. This resulted in a financial loss of around $100M that, luckily for MGM, was covered by their insurance, so it did not affect its balance sheet.

Most Prosperous Subsidiaries

MGM Resorts owns 9 companies; among them, the primary breadwinner is MGM Hospitality. It employs 30,000 employees, bringing in annual revenues of $1.1B. The Las Vegas-based company oversees the development and operation of all non-gaming activities, including prime hotel and casino locations.

Next, there’s the Borgata Casino and Spa in Atlantic City, New Jersey. The resort was founded in 1998 and features 2,767 rooms and 160,000 square feet of casino gaming floors managed and served by 5,833 employees. Last year’s annual revenues of $730M make it one of the most prominent players worldwide.

LeoVegas Gaming Ltd.

In August 2022, MGM Resorts instigated a buy-out of LeoVegas Casino for $607M. The online gambling platform has an annual revenue of €394 million and licenses from 9 jurisdictions. This positioning allows LeoVegas to offer rapid growth possibilities with their online and live dealer casino, sportsbook, and bingo businesses. LeoVegas also owns Royal Panda, Push Gaming, and GameGrounds.

Originally, LeoVegas was founded in Stockholm, Sweden, in 2011 by Robin Ramm-Ericson and Gustaf Hagman. Currently, the company is at the forefront of mobile gaming applications for online casino gambling. Their core market remains the UK and Nordic countries, including Norway, Sweden, Finland, and Denmark. They also have a presence in Spain, Italy, and some Latin American countries. Throughout the years, the casino has collected many iGaming industry awards. These include five consecutive “Online Casino of the Year” awards at the Global Gaming Awards in London.

As for the merger, it’s hoped that by coupling with such a profitable and well-known brand, MGM will use its global reach, scalable technology, and expertise to form a symbiosis between brands. This will allow continued profitable growth as the iGaming industry continues to consolidate.

BetMGM

A United States Supreme Court decision in May 2018 opened the US sports betting market to sports bettors. A couple of months later, MGM announced a 50/50 partnership with UK-based GVC Holdings (now called “Entain”) to create an online gaming and sports betting platform. It’s billing itself as the “King of Sportsbooks” and the “Legend of Gaming.” BetMGM is the exclusive sports betting partner of MGM Resorts throughout the US, with a presence in their land-based casinos and online. The BetMGM mobile app makes all games accessible in 20 US states, including Puerto Rico.

One of Atlantic City’s largest resorts, Borgata Casino, has partnered with BetMGM. With this partnership, they can offer players lucrative slots, table games in the US, and an equally exciting sportsbook. It’s the same story with the gambling websites Party Casino and Partypoker. Party Casino is the planet’s largest online poker platform. It has over 250,000 players at peak times and thousands of games from top game developers. A live dealer casino also offers casino classics like Roulette, Baccarat, and Blackjack.

Partypoker is the most recognizable name in the online poker space. As such, it offers regular promotions, tournaments, and plenty of poker cash games. It’s the best online casino website dedicated to poker. The Partypoker network has eight other sites. Furthermore, its software is used in North America by BetMGM and Borgata Poker.

Frequently Asked Questions

• What sector is MGM Resorts International?

MGM works in gambling and iGaming sectors as well as in global hospitality and
entertainment.

• Who are the shareholders of MGM Resorts International?

The main shareholders of MGM Resorts International are: Vanguard Group Inc., T. Rowe
Price Investment Management, BlackRock Fund Advisors, SSgA Funds Management, Inc.,
Davis Selected Advisers LP, Corvex Management LP, Geode Capital Management LLC.

• Where is MGM Resorts International based?

The MGM Resorts headquarters are based in Las Vegas (Nevada, USA). The company
has property and functions in the USA and Macau.

• Who is the CEO of MGM Resorts International?

William J. Hornbuckle IV is the Chief Executive Officer and President of MGM Resorts
International. He was appointed CEO of this company in 2019.

• Who is LeoVegas owned by?

In May 2022, LeoVegas was bought by MGM Resorts International, and since that time
LeoVegas Gaming Ltd. performs as its subsidiary.