MGM's Macao and Digital Assets Seeing Strong Demand but Not Enough to Warrant a Competitive Edge

MGM's Las Vegas (56% of 2025 EBITDAR) demand should rebound starting in 2026, supported by a stronger convention calendar and sustained GDP-like growth, with the addition of sports and entertainment options in the region. Also, there have been very minimal industry supply additions in Vegas this decade; this should support solid industry Strip occupancy, which stood at around 80% in 2025. Additionally, MGM’s casinos are positioned to benefit from multi-billion-dollar US sports betting and i-gaming markets, generating an estimated 13% of the company's 2030 sales (based on its 50% ownership of BetMGM) 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.