Casinos Continue to disappoint as MGM Latest to Miss Earnings

The video discusses MGM's Q2 performance, highlighting challenges in Vegas and Macau. Vegas profits were down due to unmet room occupancy expectations, while Macau struggled with a lack of VIP clientele. Future expectations indicate continued challenges, particularly in Vegas, with a potential decline in revenue per available room. The video also explores the risk of cannibalization in Macau as new properties on the Cotai Strip impact older ones.

What was a major factor contributing to MGM's profit decline in the Vegas market?

• Decreased tourist arrivals

• Increased competition

• Failure to fill rooms in time

• High operational costs

Why is MGM's property in Macau not ramping up as fast as expected?

• Lack of VIP clientele

• High competition from local casinos

• Construction delays

• Regulatory issues

What is expected to happen to MGM's revenue per available room (RevPAR) in Vegas in the upcoming quarter?

• Increase by 10%

• Increase by 5-7%

• Remain stable

• Decline by 5-7%

What is a potential risk for investors regarding MGM's properties in Macau?

• Labor shortages

• Currency fluctuations

• Increased taxation

• Cannibalization between new and old properties

Which market segment did MGM manage to capture on the peninsula side in Macau?

• Tourist groups

• Mass market

• VIP market

• Corporate clients