MGM: The first shall be last … or something like that

Closing out the J.P. Morgan Gaming & Lodging Management Access Forum were execs from MGM Resorts International. The company’s four priorities were stated as 1) drive organic growth, 2) bring new properties up to speed in terms of revenue performance, 3) the MGM 2020 cost-cutting plan and 4) allocate capital appropriately. #1 could be taken to mean “We’re not buying Caesars,” as it emphasizes growth within the existing MGM empire. The company anticipates 15% or so returns on MGM Cotai and Park MGM. As for MGM Springfield, which has been a disappointment so far, management sees room for improvement in midweek slot play. Half of MGM 2021’s cost savings are to be extracted from the workforce, while marketing efficiencies are also expected to contribute as well.

MGM disclosed no plans to raise (nor to eliminate) resort fees and was sanguine on convention business, which management characterized as “solid.” Asian business is “generally healthy,” despite some negative impact from the trade war with China. “The key to Park MGM’s success is getting the right customer in and the property seems to have a broad based appeal,” while Mandalay Bay is still feeling the hangover from the 10/1 killing spree. “The company also sees a lot of opportunity for experiences on the South end of the Strip when the Raiders come to town” (which depends on how fast the stadium gets built). Despite being willing to sink $10 billion in Japan, MGM expects to derive 15% ROI from Osaka (we think they’re smoking something but there you have it), while completion of high-roller mansions at MGM Cotai is expected to improve that resort’s less-than-stellar performance to date.

* If you’re staying at a Caesars Entertainment property, be sure and treat the mini-fridge like a loaded gun. Why? Because Caesars has found a new way to screw guests out of their money. A tag on the fridge reads, in part, “Use of the refreshment center for personal use will incur a charge of $75.” So Caesars, if you see more people trucking in coolers and pallets of soda, water and beer, you’ve only your own avarice to blame.

* Lottery officials from New Hampshire, Massachusetts and Rhode Island are huddling up today about online sports betting and what the Trump administration’s policy (it’s against it) means going forward. The states are concerned that they’ll forfeit serious money if Trump prevails. Wrote Pennsylvania Attorney General Josh Shapiro, “The potential breadth of this opinion is deeply troubling. The opinion casts doubt not only on traditional online gaming but also multi-state lottery drawings … and online sales of in-state lottery tickets.” Added Jennifer Roberts of the University of Nevada-Las Vegas’ International Center for Gaming Regulation, ”This could have huge implications for things I don’t think the DOJ intended to affect. Anything that crosses state lines through intermediate routing of data could possibly be impacted.” Unfortunately, act first and think later seems to be the modus operandi of this administration.

* The Culinary Union is bringing out the buckshot in an effort to force the Fertitta Brothers to the table over a union election at the Palms. They’re not just targeting the casino itself but business partners of the Fertittas. These include Tim Ho Wan Dim Sum restaurant in New York, e-tailer Revolve, any private-equity partners of the Fertittas, as well as the lawyers who negotiated the brothers’ recent luxury-yacht purchases. Yikes! I doubt if it will work but it speaks to the depth of the animosity between the Fertittas and the Culinary, for whom Station Casinos means war to the knife and knife to the hilt.

* Congratulations to Reno. Its airport was ranked sixth-best in the nation for on-time performance. (It also deserves a nod for user-friendliness.) The worst in the country? La Guardia Airport, which had a high rate of postponements and cancellations last year. (And the security force treats you like shyte.)