MGM Resorts International CEO Bill Hornbuckle has admitted that Las Vegas has become overly expensive, acknowledging the company's role in rising prices that have alienated tourists. During an earnings call on Wednesday, Hornbuckle said MGM's hotels had "price-corrected" following months of public criticism over steep costs for basic amenities and surcharges.
Key Takeaways
- MGM's CEO Bill Hornbuckle said Las Vegas has become a "rip-off," citing overpriced items like a $26 bottle of water.
- MGM properties, including the Bellagio and Excalibur, have adjusted prices after declining visitor numbers and backlash.
- Las Vegas tourism declined, while MGM's Strip earnings dropped from $731 million in 2024 to $601 million this year.
Hornbuckle cited the "infamous bottle of water" incident at the ARIA hotel and said guests at the Excalibur were paying $12 for a basic Starbucks coffee, describing such pricing as tone-deaf to customer expectations.
"You can't have a $29 room and a $12 coffee," he said.
He also admitted that MGM "should have been more sensitive to the overall experience." The Bellagio was also criticized for charging an additional $25 for room service served on plates.
This comes against the backdrop of a general slowdown in the Vegas tourism sector. Visitors to the city were down nearly 8% from January to August this year compared to the same period last year.
The escalation in prices has significantly altered the type of visitor the city receives. In 2024, 64% of the visitors had a minimum income of $100,000 per year compared to 48% in 2023.
Meanwhile, the city’s residents continue to experience the effects of the struggling economy. Nevada lost 6,000 private-sector jobs between July and August alone and has the fourth-highest unemployment rate among smaller metropolitan areas in the US at 5.6%.
MGM third quarterly earnings
Nonetheless, MGM Resorts International recorded total revenue of $4.3 billion during the third quarter of 2025, marking a 2% increase from the previous year. Revenues were fueled primarily by the success recorded at MGM China, which surged 17% to $1.1 billion.
Hornbuckle attributed the positive results to the company's "operational scale and diversity," adding that the company's MGM China business recorded a record quarter. The North American division of the company's BetMGM business has also recorded faster growth rates. The company can expect at least $100 million in cash distributions pertaining to the fourth quarter.
The gaming and hotel resorts in the Las Vegas area recorded a 5% decline in revenue to $2 billion due to renovations at the MGM Grand Hotel, reduced food and beverage revenue, and struggling table games. The regional business recorded a stable performance at $957 million, while MGM Digital recorded a 23% increase to $174 million.
