MGM Resorts International

• 1. Origins And Early Expansion

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  Kirk Kerkorian bought a controlling stake in the Metro-Goldwyn-Mayer film studio in 1969. This airline and casino tycoon struggled with debt from his acquisitions of MGM and Western Airlines by 1970 and 1971. He was forced to sell a majority of his casino company, International Leisure, to Hilton Hotels at a steep discount. When the Las Vegas Hilton became the most successful hotel in Las Vegas, Kerkorian decided to lead the studio into the gambling industry. The original MGM Grand Hotel and Casino opened in 1973. The MGM Grand Reno followed in 1978. By 1979, these two hotel-casinos accounted for most of MGM's income. The company announced a plan to split itself in two the next year. The film studio spun off as a new company while the original company retained the two hotel-casinos. Kerkorian held a 47 percent stake in both companies. In 1985, Kerkorian began seeking a buyer for MGM Grand Hotels. A deal closed in April 1986 when Bally Manufacturing bought the company. The terms allowed Kerkorian to retain rights to the MGM Grand name. Plans were announced to offer stockholders shares in a new company that would hold the naming rights. The company now known as MGM Resorts International formed in 1986 as Grand Name Co. It renamed in 1987 as MGM Grand, Inc.

• 2. Mega Mergers And Consolidation

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  In February 2000, MGM Grand made an unsolicited offer of $17 a share to buy Mirage Resorts. Analysts expected a protracted battle with Mirage founder Steve Wynn seen as unwilling to give up control. Mirage rejected the offer but Wynn met with Kerkorian the next day and named a price of $21 a share. The companies agreed on the higher price for a total of $4.4 billion plus $2 billion in assumed debt. The merger closed in May 2000 giving MGM ownership of the Mirage, Treasure Island, Bellagio, Boardwalk, and Golden Nugget casinos in Las Vegas. The company changed its name to MGM Mirage in August 2000. In early 2004, MGM entered into quiet merger talks with Mandalay Resort Group. The potential acquisition would give MGM control of more than half the hotel rooms on the Las Vegas Strip. MGM announced an offer worth $7.65 billion in June 2004. Mandalay rejected that offer because of a clause allowing MGM to back out if antitrust regulators demanded the sale of any properties. Analysts speculated another bidder might enter but none did. MGM and Mandalay soon agreed on a $7.9 billion deal. The sale closed on the 25th of April 2005 for a total of $7.9 billion including $3 billion in assumed debt. The Mandalay acquisition made MGM Mirage the largest gambling company in the world.

• 3. CityCenter And Financial Turmoil

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  In 2004, MGM solidified plans for the Boardwalk site announcing Project CityCenter as an $8-billion high-density project. The Boardwalk closed in January 2006 to make way for redevelopment. CityCenter construction began the following June. At about the same time, New Jersey gambling regulators were evaluating MGM Mirage's suitability to operate casinos in New Jersey. They were unconvinced that MGM Mirage's Macau partner, Pansy Ho, could operate independently from influence of her father, Stanley Ho. Faced with not complying with New Jersey gambling regulations, MGM Mirage decided to divest the highly profitable Borgata. In December 2008, MGM Mirage announced the sale of its Las Vegas Treasure Island resort and casino to billionaire Phil Ruffin. The sale completed on the 20th of March 2009 for $600 million in cash plus a $175 million promissory note. Dubai World and Infinity World filed a lawsuit in the Delaware Chancery Court seeking release from their CityCenter joint venture agreement after the company filed its annual report stating there was substantial doubt about ability to continue as a going concern. Starting in April 2009, news reports surfaced that MGM Mirage had hired investment firm Morgan Stanley to assist finding possible buyers for the MGM Grand Detroit and the Beau Rivage. The development coincided with the 2008 financial crisis causing more than $1 billion in write-offs in its valuation.

• 4. Global Diversification Strategy

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  In June 2004, MGM formed a joint venture with Pansy Ho to develop a casino-hotel under a sub-concession from Stanley. Construction of the MGM Grand Macau began in June 2005. The property opened in December 2007 completed at a cost of $1.25 billion. Singapore emerged in 2004 as the next major new Asian gambling market calling for proposals to build two integrated resort casinos. MGM partnered with CapitaLand in an estimated $3 billion bid for the Marina Bay site. Their bid advanced to the final stage against three competitors but the government awarded the license to Las Vegas Sands citing strength in meetings and conventions sector. In 2013, MGM won state licenses to build a $1-billion resort in National Harbor, Maryland and a $950-million resort in downtown Springfield, Massachusetts. In April 2016, MGM held an initial public offering for MGM Growth Properties raising $1.05 billion leaving MGM Resorts with 76 percent ownership of the REIT. In August 2016, MGM bought out Boyd Gaming's interest in the Borgata for $900 million then sold the property to MGP for $1.2 billion and leased it back for $100 million per year. In 2019, MGM sold two resorts on the Las Vegas strip: Bellagio and Circus Circus selling their real estate assets to Blackstone Group while selling Circus Circus to Phil Ruffin.

• 5. Digital Gambling And Sports Partnerships

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  Following the U.S. Supreme Court's May 2018 ruling that struck down the PASPA sports betting ban, MGM announced a 50/50 joint venture with UK gambling operator GVC Holdings in July 2018. The joint venture was named Roar Digital in January 2019. In September 2019, the company announced a partnership with sports bar chain restaurant Buffalo Wild Wings featuring live odds provided by BetMGM. In late 2018, BetMGM signed official partnerships with several North American professional sports leagues including the National Basketball Association, the National Hockey League, and Major League Baseball. In July 2020, BetMGM announced a partnership with the Denver Broncos of the National Football League. BetMGM followed this deal with multiple betting partnerships with other NFL teams including the Detroit Lions, Las Vegas Raiders, Tennessee Titans, and Pittsburgh Steelers. In November 2021, BetMGM along with eight other sports gambling operators were awarded sports betting licenses by the New York State Gaming Commission. In 2024, BetMGM became the title sponsor of the NASCAR Xfinity Series spring race at Charlotte Motor Speedway.

• 6. Operational Challenges And Legal Issues

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  In August 2020, MGM cut 18,000 job positions as a result of effects from the COVID-19 pandemic. The job cuts represented one fourth of its workforce which before the start of the pandemic was 68,000. MGM Resorts International received criticism for filing a lawsuit on the 18th of July 2018 against survivors and relatives of victims slain in the 1st of October 2017 Las Vegas shooting. Robert Englet, an attorney to some of the survivors, described the countersuit as an attempt to get a more favorable judge. Brian Claypool, another attorney of the survivors, called the lawsuits a public relations nightmare. In October 2019, MGM agreed to pay victims and survivors up to $800 million. In September 2023, MGM's hotel and casino operations were disrupted for several days during a cybersecurity attack by the hacking group Scattered Spider. The company refused to pay a ransom stating losses of $100 million would be covered by cyber insurance. As a result of the cyberattack, multiple class action lawsuits were filed against MGM Resorts as well as Caesars Entertainment. Nevada Gaming Control Board unanimously voted on the 24th of April 2025 to levy a fine of $8.5 million on the company for having allowed two illegal bookmakers to gamble at MGM Grand and The Cosmopolitan.