[stevek64]

Originally Posted by BBMW

Actually, thus is wrong. Once they started deprecating gaming, and demanding that all the departments make money, they were wildly successful. They were so successful that they borrowed vast amounts of money to greatly expand. Then the economy collapsed.

That's not my definition of "wildly successful". "Were" and "Was" is not how business succeeds. Consistent, measured, and well managed growth in up and down times is.

[BBMW]

Pretty '08, they were wildly successful, even with the debt. The economic collapse gutted their business plan.

You were saying that moving away from the gaming-centric model led to their problems. That just isn't the case. If anything, the non-gaming revenue kept them going.

[stevek64]

Not to say they haven't found some revenue niches but gaming revenue was easy money/their bread and butter over the history of the city. And very profitable and consistent if managed well. Plus the night clubs are only about 14% tops in revenue for a casino at the highest earning casinos according to this:

The Surprising Way Las Vegas Casinos Make Loads of Money -- The Motley Fool

What's the actual profit being made is the bigger question to me as revenue means nothing without taking into account expenses. Night clubs with high $ recording spinners(Dj's) and other overhead I would guess is not nearly as profitable as gaming. And while gaming has obviously dropped over the decades, it still brings in a good chunk of revenue, about 1/3 as of 2012:



When the boomers move on, things I've read don't point to a rosy picture of people under them wanting to gamble much. I guess parking fees and such will take over the next 10-20% of gaming revenue loss or whatever drop might occur over the next decade or two. Somehow I don't think Las Vegas in its current form would have started today if it knew it had to base it's $ model on clubs, restaurants, hotel rooms, and shopping. It will be interesting to see what the city morphs into in the coming decades, who's left standing, etc.

[momofvegasgirls]

Not sure if this bit from Jim Murren has been posted yet, so I apologize if it's a duplicate. From the CEO...:

MGM Resorts

[BBMW]

That chart is useless in determining profitability. It just shows revenue mix. It doesn't even show revenue amounts.

Back to the original subject, after the switch to the more balanced revenue structure, from 01 into 08, MGM had steady EPS growth. It started trailing of I 08, then fell of the cliff in 09.

[shellymdnv]

Originally Posted by stevek64

It will be interesting to see what the city morphs into in the coming decades, who's left standing, etc.

I think the future may lie with residencies from top tier talent, especially once their fan bases get older. It also provides an opportunity for casinos to bring in a new generation of gamblers with their entertainer themed slots, on my last trip nearly every Britney Spears themed slot machine I saw was occupied.

[stevek64]

Originally Posted by BBMW

That chart is useless in determining profitability. It just shows revenue mix. It doesn't even show revenue amounts.

Back to the original subject, after the switch to the more balanced revenue structure, from 01 into 08, MGM had steady EPS growth. It started trailing of I 08, then fell of the cliff in 09.

Agree on the profitability.

Correct, the chart just shows revenue %, giving an overall revenue picture I used to make the point on overall revenue mix of gaming vs other forms of casino non-gaming revenue.

Would be interesting to see an overall chart on profitability overall for Las Vegas casinos over the years. I know Wynn and LVS does decent overall but based on my analysis, much of this profitability has come from their operations in Macau over the recent years, not Las Vegas.

Originally Posted by shellymdnv

I think the future may lie with residencies from top tier talent, especially once their fan bases get older. It also provides an opportunity for casinos to bring in a new generation of gamblers with their entertainer themed slots, on my last trip nearly every Britney Spears themed slot machine I saw was occupied.

Britney may save the day in the end!

When I walk through casinos over the recent years, I've noticed that most of the younger players seem to be playing table games more than slots but that's just my small observation sample.

And yes, certainly "classic rock" groups have a decent following in Las Vegas. And throughout the country in other casinos for that matter.

[BBMW]

MGM was late and small in Macau. So they're more direct Vegas.

[irishspy]

Here is the issue in LV most other cities charge for parking but they charge everyday because people use the parking every day. One distinct item LV does not have is mass transportation (subways) or above ground trains. Take many cities like NYC,Boston,Washington,Atlanta,and many more you can go to the venue or area of the city very cheap on the mass transportation systems. Do not expect that for LV we barley are able to keep the inter structure we have in repair. Lets face it over the years the strip and DT was built for the incoming tourist not the locals and us locals are very outnumbered now because over 40 million people come here. The add on of we will charge for parking all of the time is a clear message to us locals take it or leave it. The Casino Cash Cow stills runs LV and our economy.

[NLVgal]

Originally Posted by BBMW

MGM was late and small in Macau. So they're more direct Vegas.

And Wynn is pissed about his Macau experience. I hate to be an " I told you so" but there it is.
MGM ... A high level MGM guy told me that since the Mirage / MGM merge, they had created a hydra.

Seriously, these guys didn't realize they were being ripped off for a hundred bucks every time one of their insured got an MRI? The intermediary called it a "fee" for their services. A coworker found this nonsense and I did weeks of reporting to show them that it was true. The loss amounted to millions.

They thanked me, and quietly dropped their intermediary the next time open enrollment was available.