Now that Wynn Resorts
So what will the second quarter provide? Gambling is on the rise in Las Vegas compared to last year, and if MGM can get back to growing casino revenue, then rising room rates and expensive bottles at poolside cabanas won’t have to make up the slack. Here's how the three public gaming companies' casino revenues stack up so far in 2011.
Casinos |
Casino Revenue Change Q1 2011 |
Casino Revenue Change Q2 2011 |
---|---|---|
Las Vegas Strip | (0.4%) | 13.6%* |
Wynn Resorts | 39.2% | 35.1% |
Las Vegas Sands | (46.5%) | 2.1% |
MGM Resorts | (4.6%) | N/A |
Source: Company reports. *April and May growth vs. 2010. Las Vegas Strip revenue is only available for April and May. N/A = not applicable because MGM hasn't reported yet.
Wynn Resorts is obviously taking share in Las Vegas, and it appears that the high end of the market is very strong. MGM plays in the high-end market with the Bellagio, but most of its casinos cater more to a mass-market audience than big baccarat players. That makes this quarter an interesting one for the company.
MGM needs some serious deleveraging in the near future, given its $12.3 billion in long-term debt. With less exposure to Asia than Las Vegas Sands, Wynn Resorts, or Melco Crown
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