MGM CEO Hornbuckle Talks Vegas, New York Licensing Hurdles and Prediction Markets at BofA Conference

MGM rides strong momentum despite Vegas headwinds

The event followed MGM’s record-setting Q2 results, which saw $4.4 billion in consolidated revenue, surpassing analyst expectations on both revenue and EPS. While Las Vegas is still wrestling with a softer tourism environment and some of MGM’s major investments remain years away from paying off, recent performance showed resilience.

MGM shares dipped about 2% Thursday to roughly $37, though the stock is still up 15% over six months and 11% year-to-date. Hornbuckle emphasized that growth and diversification remain the guiding principles, with Las Vegas still the company’s backbone.

“Vegas is principal to who and what we are,” he noted, while also underscoring the need to broaden the business footprint. MGM controls 14 properties on the Strip, making it one of the city’s most dominant players.

Las Vegas: value versus perception

The city’s economic health has been under scrutiny this year, as rising gaming revenue contrasts with falling visitation numbers and traveler complaints about high fees. Hornbuckle was keen to push back against “Vegas is dead” narratives.

“We let the story get away from us,” he admitted, while insisting Las Vegas remains “a huge value” for consumers across all spending levels.

Still, he acknowledged weakness at the budget end. Spirit Airlines’ bankruptcy caused a 42% drop in Vegas passenger traffic in July, while car trips from Southern California have also slipped. The LVCVA is working to restore international demand, including strained ties with Canada.

Frustration with New York licensing rules

New York also featured prominently, as MGM is pursuing a $2.3 billion expansion of its Empire City property in Yonkers. With its existing infrastructure and community ties, it is considered a leading contender for one of three coveted downstate licenses.

Yet Hornbuckle voiced irritation at shifting requirements. A new framework ties license length to investment levels:

• Under $1.5B → 10 years
• $1.5B–$5B → 15 years
• $5B–$10B → 20 years
• Above $10B → 30 years

That puts MGM, Bally’s Bronx ($4B) and The Coney ($3.4B) in the 15-year tier, while bids like Caesars Times Square, Resorts World NYC and Soloviev’s $11B Freedom Plaza qualify for 20–30 years. “They’ve changed a couple of rules I’m not crazy about,” Hornbuckle remarked.

BetMGM gains, prediction markets rejected

On the digital side, Hornbuckle said little about sports betting and iGaming since BetMGM, the joint venture with Entain, had its own slot on the agenda. Even so, he noted that product improvements have allowed BetMGM to regain ground in the US market after losing share to FanDuel and DraftKings.

However, when asked about the rising buzz around prediction markets, his stance was firm: “Allowing sports outcomes in prediction markets invites federal oversight into a space it’s never been, and that’s not a place we’d like to see this marketplace go. Full stop.”