MGM CEO Hornbuckle expounds on Las Vegas, prediction markets and more at BofA conference
In a fireside chat with Bank of America, the MGM boss touched on just about every topic related to his company’s growing operations.
MGM Resorts CEO Bill Hornbuckle was expansive about a litany of industry topics Thursday at the Bank of America Securities 2025 Gaming & Lodging Conference, touching on everything from his company’s global growth plans to its bearish stance on prediction markets.
The conference came after MGM beat consensus forecasts for both revenue and earnings per share in Q2. Its consolidated net revenue of $4.4 billion was a new quarterly record for the company. Las Vegas is fighting a tourism malaise and several of MGM’s biggest investments are years away from materialising, but those factors did not meaningfully impact recent performance.
The company’s stock was down about 2% in trading Thursday afternoon, hovering around $37. Still, its shares are up about 15% over the last six months and 11% year-to-date.
“For us, it’s about continued growth, it’s about diversification,” Hornbuckle said. “Vegas is principal to who and what we are, and so even if you think about that portfolio, I think it’s served us well through a very difficult summer. … But for us, it’s really about diversification of the business.”
Las Vegas still core to MGM and its future
Those various diversification efforts were outlined by Hornbuckle, but Las Vegas was at the core of discussion given its importance to the company. MGM is a dominant force on the Las Vegas Strip, owning or operating a total of 14 gaming and non-gaming properties there.
The sustainability of the city’s economic health has garnered national attention this year, especially as tourism falls while gaming revenue increases. Critical social media posts from travelers lamenting fees and high prices have been common. But things have started to calm, with upbeat Q2 results for MGM and other operators being a positive sign.
Hornbuckle, as one would expect, was bullish on the city’s overall prospects.
“To the idea that Las Vegas is dead, I would say this: We are putting a push on, because we let the narrative get away from us, in the context of value,” he said. “So we are out pushing that Las Vegas is a huge [value] and remains a huge value for consumers at all levels.”
Lower-end play struggling to keep up
That last point was important, as Hornbuckle did concede that lower-end play has indeed been impacted. He cited the bankruptcy of budget carrier Spirit Airlines, whose Las Vegas traffic was down 42% YoY in July, according to airport data.
Car traffic from Southern California is also “meaningfully off”, he said, with visitation data showing YoY decreases over the last two months.
The Las Vegas Convention and Visitors Authority has been working hard to promote the city, in the way that Hornbuckle outlined. Agency officials travelled to Canada last week, seeking to remedy fractured relations with the city’s biggest international feeder market. Comments from US President Donald Trump have rankled Canadians and other would-be international travelers.
“A portion of our friends in Canada are not happy with us right now,” said LVCVA CEO Steve Hill, per the Nevada Independent. “We want them to come back, but we understand they may not be ready to do that.”
Moving the goalposts in New York?
New York was also discussed, with MGM being one of eight bidders vying for three available downstate casino licences. The company is proposing a $2.3 billion expansion of its existing MGM Empire City racino in Yonkers, the former Yonkers Raceway.
Given the property’s existing infrastructure, community relations and tax contributions, it is considered a frontrunner in the race. That said, Hornbuckle seemed somewhat disgruntled by the process, which has taken years but still has months to go and hurdles to clear.
“They’ve changed a couple of rules that I’m not crazy about,” he said. “There’s a deal that says — after we made our submission, by the way — that if you spend under [$1.5 billion], you only get a 10-year licence. If you spend over, I think it’s $5 billion, you get a 20-year licence. So they’ve now tied the amount of money you spend to how long your licence duration is.”
In response to an inquiry from iGB, the New York State Gaming Commission said the licence term framework draft was sent to commissioners 1 August and was recommended for approval at the commission’s 25 August meeting. The deadline for applications to the state was 27 June.
The proposed framework is more intricate than Hornbuckle said, and is as follows:
- Total investments under $1.5 billion would get a 10-year initial licence.
- Investments between $1.5 billion and $5 billion would get a 15-year initial licence.
- Investments between $5 billion and $10 billion would get a 20-year initial licence.
- Investments above $10 billion would get a 30-year initial licence.
Will the highest bidder please stand up
Hornbuckle’s irritation could stem from the fact that Empire City is pledging the lowest total investment of the field.
Along with MGM, The Coney ($3.4 billion) and Bally’s Bronx ($4 billion) would be the only ones below the $5 billion threshold. They would all thus be eligible only for 15-year initial licences.
The remaining five bidders — Avenir, Freedom Plaza, Caesars Times Square, Met Park and Resorts World NYC — are all above $5 billion, indicating 20-year licences at the least. At $11 billion, Soloviev Group’s Freedom Plaza bid would be the only one eligible for a 30-year licence.
As the process continues, bidders will also be asked to pitch their own tax rates. But Hornbuckle said Thursday that his company has to at least match the current tax rate for Empire City and keep all horse racing purse commitments. This, he said tongue-in-cheek, was just “one more quirk” to deal with.
BetMGM up, prediction markets down
Not much discussion was given to sports betting and iGaming through BetMGM, as that company had its own presentation to give. BetMGM is a joint venture between MGM and UK-based Entain.
Entain has been on a rollercoaster ride in recent years, including a significant bribery case in Turkey that has resulted in criminal charges for 11 former executives. Despite this, BetMGM has had perhaps its strongest year thus far in 2025.
Hornbuckle said that “simply improving the product and making it better” has landed well with players. The JV has also “stopped losing share” and is starting to take some back as it wrestles with several others for third place in the US behind FanDuel and DraftKings.
But on the topic of prediction markets, which have captivated the industry for the last year, the MGM boss was decidedly opposed. His comments mirrored those he gave to iGB in April.
“MGM Resorts’ view is [allowing sports outcomes in prediction markets] invites the federal government into a space it’s never been, and it’s not a place we’d like to see this marketplace go. Full stop,” Hornbuckle asserted.
That stance could indicate that BetMGM will be cautious in exploring prediction market deals. Its competitors FanDuel and Underdog have already made such deals, and reports have shown that DraftKings and PrizePicks could be waiting in the wings.
“It’s real, we have to contend with it and understand it. We have to be ready for it if it becomes even realer, but officially it is not something we endorse,” Hornbuckle said.
