MGM Resorts Pondering New Casino on Las Vegas Strip’s Southern End
Posted on: December 2, 2021, 01:25h.
Last updated on: December 2, 2021, 02:57h.
MGM Resorts is increasingly optimistic regarding the future of the Las Vegas Strip’s southern end. One of its top executives said this week that more developments in the area could be forthcoming.
![MGM Resorts Excalibur Las Vegas Strip](https://www.casino.org/news/wp-content/uploads/2021/12/5d48d070-946b-49fd-a5f4-4ca6f864a90c-large16x9_41720excaliburlasvegas2.jpeg)
MGM Resorts, the operator of the most casinos on the Strip, dominates the drag’s southern tip. The company runs Mandalay Bay, Luxor, Excalibur, New York-New York, Park MGM, and MGM Grand. The only casino resort on the Strip’s southern section that MGM doesn’t operate is the Tropicana.
MGM is expanding its dominance in the area by way of the Cosmopolitan. The company announced in September that it would pay the Blackstone Group $1.6 billion to acquire the operational rights of the luxury casino and hotel.
MGM might not be finished. Speaking this week at the Morgan Stanley Virtual Global Consumer & Retail Conference, MGM Chief Financial Officer Jonathan Halkyard explained that the company could theoretically build a new from-the-ground-up casino near Excalibur.
The CFO said that there are seven acres alone of Strip-facing land in front of the Excalibur, which is roughly the same footprint that the Cosmopolitan sits. Halkyard clarified that he isn’t suggesting MGM is going to soon build a 3,000-room hotel tower there. But it’s nonetheless an option.
Development Process
If MGM Resorts indeed wishes to build a new property near Excalibur, the casino operator would first need to come to some sort of deal with its landlord. MGM Growth Properties, the real estate investment trust (REIT) of MGM Resorts, owns the land and physical assets of each of the previously mentioned casinos MGM operates.
There have been rumblings in recent years that MGM is looking to divest Excalibur and/or Luxor, which comprises the casino company’s lower-end properties that cater to budget-conscious travelers.
MGM Resorts holds a majority ownership position in MGM Growth Properties.
The Strip’s southern section is indeed bustling. Along with Allegiant Stadium, home of the NFL Las Vegas Raiders, which is located just across I-15 from Mandalay Bay, reports surfaced this week that the MLB Oakland A’s are exploring building a ballpark near Tropicana.
Vegas Vigor
COVID-19 remains a great threat to world economies. The latest omicron variant is causing much uncertainty as 2021 nears its end. But assuming the mutation doesn’t result in the reimplementation of draconian lockdowns, MGM brass are optimistic about the future of Las Vegas.
There’s good reason for that cheeriness, as Nevada casinos have eclipsed $1 billion in monthly gross gaming revenue in each of the past eight months. Clark County, home to Las Vegas, has reported casino win of more than $1 billion in five of the six previous months.
Halkyard said the stout gaming revenue numbers are partially due to pent-up demand, but also more sustainable factors, such as increased spending from guests. The CFO added that, at least for now, omicron is not having a material impact on bookings.
One area of concern is that the age 65 and older demographic hasn’t returned to Southern Nevada and MGM’s regional casinos across the country. At least not in the same numbers as younger people. But Halkyard says when they do, it will only help MGM normalize its industry should some of the pandemic pent-up demand taper.
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Last Comments ( 9 )
Vegas was So Amazing in the 2000's but once they charged for parking, increased resort fees and stopped with the amazing food services and now that they are shutting down buffets its just so sad. Even the Aria has gone downhill so fast, its is a shame and now that MGM has its paws on the Cosmoplitan its going to be a real shit show... they don't need to build new, they need to rebuild what they already have
We would take a trip to Vegas 4 or 5 times a year. Now with the resort fees and the poor service maybe once now in 2 years.
Time for casinos to.losen the slots. They have less emoyees and are not o as yong out like they use to. No wonder they are making such a big profit. How about donating some of their money to the school district here so they can transport the kids like they should. Or how about donating money to the county and state so they can hire more traffic cops. Share the wealth. Don't need any more casinos now.
Old people are more aware about what are you paying for . Vegas is not the same any more , you pay parking fees , room service dinner are now delivered in a bag and paper dishes , drink come in outrageous prices , room te crowded by families and friends who want to save money in bookings , charges for amenities , refrigerators , quality of cleaned rooms are bad due to lack of personal !
Las Vegas has become a state fair for families that's why the older people aren't coming back too many kids all over the place.
Now that they're making billions, how about dropping the resort fees and parking fees
Better than building in a tight space in front of the Excalibur, MGM should purchase the Tropicana, demolish it, and then build the biggest, baddest resort in Las Vegas in its place!! Seriously, it is WAY past time for the Trop to be razed. It is the oldest hotel on the strip, maybe in Vegas, at nearly 70 years old now. Its dirty white exterior has been an eyesore at the bottom of the strip for decades.
Each day that goes by, the probability of the A's moving to a new stadium on the Tropicana property becomes more and more sure. More gaming/hotel capacity will be used by fans of both the MLB and the NFL games. Also cheaper taxi/Uber to south end of the strip.
Went to Excalibur oh my gosh it has really went down I will never go back there again