Summary:
- CEO Bill Hornbuckle said the company “lost control of the narrative” on resort fees, parking, and pricing, promising corrections.
- MGM posted $4.3 billion in Q3 2025 revenue, driven by strong results in Macau but softer performance in Las Vegas..
- The company withdrew its $2.3bn New York casino bid after licensing terms changed unexpectedly.
MGM Resorts International CEO Bill Hornbuckle didn’t sugarcoat things during the company’s third-quarter earnings call on Wednesday, openly admitting that the company’s pricing strategy had gotten out of touch with what guests were willing to pay.
“We just lost control of the narrative”, Hornbuckle said, acknowledging that some decisions were poorly calculated.
He pointed to specific examples that drew criticism, like the $12 bottle of water or coffee at Excalibur.
When we think about pricing and things that got everyone’s attention, whether it’s the infamous bottle of water or Starbucks coffee at Excalibur that cost $12, shame on us. We should have been more sensitive to the overall experience at a place like Excalibur.
The CEO acknowledged that customers who paid aa rate of $29 per room should not have been sold $12 coffees.
We’ve gone through the organization and we think, we hope, we believe, we’ve price-corrected.
Q3 Revenue Up 2%
Despite the missteps, MGM Resorts reported $4.3 billion in revenue for the third quarter of 2025, up 2% from last year. The biggest growth came from MGM China, where revenue rose 17% year-over-year to $1.1 billion.
In Las Vegas, however, the picture isn’t as bright. A recent report showed overall revenue on the Strip has declined, and Hornbuckle acknowledged that lower international travel and fewer flight options are taking a toll across all of their marketplaces, as well as Luxor and Excalibur.
Still, Chief Operating Officer Corey Sanders, who plans to retire at the end of 2025, said most of MGM’s resorts are holding steady. “You look at Bellagio, you wouldn’t know anything was wrong with it”, he said, while talking about the high gaming volumes and the sometimes “more challenging” occupancy rates.
Out of NY Casino Bid
The company also withdrew its bid for a New York casino license earlier this month. MGM had planned a $2.3 billion expansion of its Empire City racino in Yonkers, but Hornbuckle said the terms of the deal changed unexpectedly.
The thing that concerned us probably the most was at the end, when we thought we were buying a 30-year license and were told it was 15. That was concerning… given overall market conditions, it’s capital best spent at some other location and some other opportunity.
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