With all of its tentacles, MGM has exposure to the global gambling industry, both in-person and online They’ve sold The Mirage and their Gold Strike Mississippi casino, as well as sold the land of their Las Vegas properties. The most recent activity has been that MGM is raising capital through a number of different initiatives. Since then, it has been 40 years of acquiring and disposing of various casino properties. They expanded these hotel/casino operations across different locations and in 1979, they decided to split the companies into two. In 1973, they opened the original MGM Grand Hotel and Casino. Well, that integrated casino resort would go on to be the most successful hotel in Las Vegas.Īfter seeing that, Kerkorian decided to lead the film studio into the casino world. However a couple years later he was struggling with some of the debt load, so he had to sell his casino company (called International Leisure at the time) to Hilton Hotels. A fellow named Kirk Kerkorian, who was a casino and airline mogul at the time, bought a controlling stake in MGM Film Studios. (Ryan) History: Not going to spend too much time here because it’s a pretty messy history of acquisitions and dispositions, but I’ll give them the genesis for the company for anyone interested. They are currently third behind DraftKings in sports betting market share and the leader in iGaming. Management has said that they think the business could have potentially 30%-35% EBITDA margins at maturity. Last year, BetMGM delivered $1.3 billion in revenue and it’s growing like a weed. Today about 30 states allow sports betting, whereas iGaming is really only legal in 6 states right now. BetMGM is an app and platform that offers iGaming and sports betting. MGM technically has a 50% ownership of BetMGM with Entain (an online gaming operator from the UK) as the other partner. The other segment here that is perhaps most important is BetMGM. And they now lease those properties with built-in 2% rent escalators.

They are all either owned by VICI or Blackstone. So now MGM doesn’t actually own any of its domestic properties. This was apparently considered an umbrella partnership REIT that owned all the actual real estate for 7 of MGM’s Las Vegas properties. So MGM used to own a stake in what was called MGM Growth Properties. Unconsolidated subsidiaries: A couple of things to note here.

Lurxor hotel and casino sports betting