MGM's Las Vegas Business Remains on Stable Footing Amid Near-Term Economic Concerns

While there are concerns of a near-term slowdown in economic growth in the US due to an uncertain tariff policy, MGM's Las Vegas (59% of 2024 EBITDAR) revenue remains flat and more than 150% above 2019's level, helped by the addition of sports and entertainment options in the region. Additionally, MGM’s casinos are positioned to benefit from multi-billion-dollar US sports betting and i-gaming markets, generating an estimated 11% of the company's 2029 sales (based on its 50% ownership of BetMGM and sole ownership of MGM Digital) despite intense competition. However, the US doesn’t offer the long-term growth potential or regulatory barriers of Macao; thus, we do not believe the region contributes to a moat for MGM. Still, there have been very minimal industry supply additions in Vegas this decade; this should support solid industry Strip occupancy, which stood at around 90% in 2024.