MGM Resorts International is reportedly exploring a series of new revenue-enhancing strategies for 2025. These initiatives will build upon recent measures in the company’s Las Vegas properties, such as resort and parking fee increases. These measures come as the company faces headwinds in its traditional brick-and-mortar casino operations, hopefully giving it additional leeway to adapt to shifting consumer preferences.
Fee Hikes Are Never Popular with Customers
In December 2024, MGM Resorts raised its resort fees at all Las Vegas properties. Increases range from $3 to $8 per day, with premium properties like Bellagio, Aria, and Cosmopolitan now charging $55 per day, up from $50. Mid-tier properties, including New York-New York and Luxor, have seen their fees rise to $45.
MGM’s Vegas properties have also increased their parking fees. Self-parking now costs $20 during the week and $25 on weekends, while valet parking has jumped to $40 a day at all properties, a substantial increase over previous rates as low as $25. In addition to resort and parking fees, MGM Resorts is reportedly exploring innovative avenues to generate supplementary income.
While MGM frames its fee increases as aligning with market standards, the changes have elicited mixed reactions from visitors and industry observers. Resort fees, which include amenities such as WiFi, use of fitness centers, and video streaming services, remain highly controversial among travelers, potentially influencing MGM Resorts’ public image.
BetMGM Remains a Priority
Despite growing consumer backlash, MGM appears to be doubling down on this approach. One strategy reportedly proposed by the operator revolves around tiered restaurant seating, wherein guests would pay a premium for specific seating areas, similar to airline seat upgrades. While such strategies are unlikely to impact top-line growth, they could still enhance EBITDA due to low implementation costs.
In a recent note to investors, Deutsche Bank analysts suggested that MGM will pivot further toward the online sports betting vertical via BetMGM in 2025. The company spent 2024 funneling significant investments in the online vertical, which should soon start paying dividends. Although BetMGM experienced substantial losses in 2025, experts expect BetMGM to shift toward positive EBITDA in 2025.
As MGM navigates a challenging environment for its traditional casino operations, its focus on fee increases, creative revenue strategies, and the growth of BetMGM reflect a shift in priorities. Successfully implementing these plans will be pivotal for maintaining MGM’s robust investor confidence and helping it grow its market share.