Why Doesn't MGM Operate Any Properties in Nevada Outside of Las Vegas?

Why doesn't MGM operate any properties in Nevada outside of Las Vegas?

To resuscitate an old Watergate saying, Follow the money.

MGM Resorts International has been steadily drawing down its casino presence in the Silver State, except for the Las Vegas Strip. Even there, it shucked Treasure Island to Phil Ruffin during the depths of the Great Recession.

The bottom line is that outside of Sin City, casino markets in Nevada are chicken feed to a company as big as MGM. In June 2025, for example, Reno grossed $68 million compared to the Strip’s $765 million. MGM used to operate in Reno, a long time ago, but now the old MGM Grand is the independently owned and operated Grand Sierra Resort.

Also looking at June’s grosses, other markets in Nevada are comparably anemic for a company used to grossing as much as MGM does. Laughlin brought in $40 million. Unreliable Lake Tahoe did half that much. Also, in smaller markets, it's difficult for a company like MGM to amass the kind of high-volume cluster of casinos it enjoys on the Strip.

True, the company did take a flier into the locals business with a quintet of shabby casinos in Primm and Jean. The three in Primm came from a buyout of Gary Primm in 1998, the two in Jean from MGM's 2004 absorption of Mandalay Resort Group. MGM ran them awhile as farm clubs for management, but sold the Primm threesome for $400 million to Herbst Gaming in 2010. Then they closed and tore down the two in Jean (Nevada Landing in 2008 and Gold Strike a couple of years ago).

It’s ultimately been more lucrative for MGM to sell itself out of the Nevada hinterlands than to operate in them. At a time when the company is trying to exit from Ohio and Massachusetts as well, a pattern emerges. When MGM is spending billions of dollars to develop a megaresort in Osaka, Japan, and casting covetous eyes on Thailand, small casinos are simply more trouble to Leo the Lion than they’re worth.

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O2bnVegas Sep-01-2025

Harrah's corner on the market

I suppose Harrah's has Reno/Tahoe sewn up with the charter flights.  Same as in Laughlin.  Without the charters they might not survive.  Too remote for many to drive.  

Harrah's has three properties in AC that fly us suckers in for the kill: Caesars, Trop, and Harrah's.  It appears they do really well.  I actually like Caesars AC a lot.

Then there is MGM in Biloxi, Beau Rivage.  I'd have never known about Biloxi if not for the charters (all seem to use Sun Country).  I'm sure MGM must have looked at the "hinterlands" properties in Nevada and opted not to go that route.

Candy

Jeff B. Sep-01-2025

Thanks!

Thanks for the explanation. I get the best strip comps from MGM, so that's my preferred brand. I would go to Reno/Tahoe or even give Laughlin a try if MGM had a presence there.

Bill Hirschman Sep-01-2025

pure greed

maybe that's why I enjoy the Bellagio Fountains so much.
  They don't cost me anything!!!

Question of the Day - 01 September 2025

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