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Summary:
- CFO says fewer drive-in visitors from California hurt 2025 numbers but expects a rebound.
- He argued Las Vegas hasn’t lost its value and noted MGM has adjusted some fees after criticism about visitors feeling “nickel and dimed.”
- MGM has stepped away from the New York license race and is focusing on projects in Las Vegas, Osaka, the UAE, and digital gaming.
Jonathan Halkyard, the CFO of MGM Resorts International, spent part of his Wednesday walking Nevada regulators through the company’s year and how shifting travel habits have shaped Las Vegas.
His appearance before the Nevada Gaming Control Board was part of the standard licensing process, coming right after CEO Bill Hornbuckle’s review with the Commission.
Halkyard didn’t shy away from admitting that 2025 hasn’t matched the strength of 2023 and 2024, especially when it comes to occupancy. A few MGM properties didn’t reach the levels the company expected, even though numbers that would thrill most operators still felt a little underwhelming for MGM.
As he put it,
When you’re operating at 90% occupancy in most markets, that would be a banner year. For us, it’s a little bit of a disappointment.
He added that he expects things to level out as visitation picks up again. MGM is already looking ahead to 2026, pointing to upcoming events and attractions that continue to draw strong interest. “The attractiveness of those are unabated” he said.
Decline in Drive-In Visitors
One of the key issues this year has been a noticeable drop in drive-in visitors from Southern California. While that decline has been widely discussed, Halkyard pushed back on the idea that Las Vegas has suddenly become too expensive or lost its appeal.
I don’t think it’s valid to say Las Vegas lost it value when one compares the cost of hotel rooms here and the cost to get here and all of the options here for entertainment and food and beverage
He also acknowledged that visitors have real concerns about added fees and feeling “nickel and dimed”. According to him, MGM has made some targeted price adjustments in areas where costs didn’t make sense.
These aren’t large issues in the grand scheme of things, but they do matter to the reputation of the city. So we changed some of those.
The New York License Matter
Board members also asked about MGM’s decision to pull out of the competitive race for a gaming license in New York. Halkyard said the company spent a long time weighing that choice, but the investment size, long timelines, and competitive environment made it hard to justify.
Instead, MGM is concentrating on other projects.
We do see growth opportunities here in Las Vegas investing in our properties
He also pointed to major work in Osaka, where a large integrated resort is underway, and a non-gaming project in the United Arab Emirates that could eventually open the door to gaming.
