Published on: October 29, 2025, at 09:01 AM.
Updated on: October 29, 2025, at 09:01 AM.
- A major operator reveals disappointing Q3 results in Las Vegas.
- MGM incurs a $256 million charge and $93 million in write-downs due to exiting the New York casino bidding.
- CEO acknowledges pricing errors in Las Vegas.
MGM Resorts International (NYSE: MGM) saw its shares decline during after-hours trading on Wednesday, following the announcement of a third-quarter loss attributed mainly to underperformance at its Las Vegas Strip hotels and one-time charges related to its withdrawal from the New York City casino bidding war.
The Bellagio operator earned $2 billion on the Strip, down from $2.1 billion the previous year, with an EBITDAR of $601 million compared to $731 million a year prior. This decline on the Strip, where MGM is a leading operator, was anticipated after rival Caesars Entertainment (NASDAQ: CZR) experienced a downturn following poor Q3 results primarily driven by Strip weaknesses.
Compounding MGM’s challenges in the September quarter was a non-cash goodwill impairment charge of $256 million and $93 million in non-cash write-downs due to its decision to abandon plans for a casino license at Empire City Casino in Yonkers, NY.
MGM ‘Lost Control of Its Narrative’
Several factors contributed to the decreased visitor numbers in Las Vegas this year, including President Trump’s trade tariffs hindering international tourism and high unemployment rates in California, which is the largest domestic market for the casino industry. All indications suggest that 2025 will be a year to forget for Strip operators.
Moreover, MGM has not made its situation any better. Already struggling with a reputation for milking customers dry, this issue became glaringly evident in the second quarter—another period of weak Las Vegas performance—amid reports of $26 water bottles at Aria. Unfortunately, MGM didn’t learn from the backlash over the summer.
“When we reflect on pricing issues that drew attention, like the infamous water bottle incident or the $12 Starbucks coffee at Excalibur, we acknowledge our mistakes,” stated CEO Bill Hornbuckle during a conference call. “We should have been more attuned to the overall experience at venues like Excalibur for our customers. You can’t price a room at $29 and a coffee at $12.”
Hornbuckle admitted that MGM “lost control of the (pricing) narrative” over the summer, and noted the company is reassessing its pricing strategies and implementing changes to rectify previous mistakes.
MGM Staying in New York
MGM’s announcement to withdraw from the New York casino bidding was unexpected, particularly given that Empire City was seen as a strong contender for one of the three available licenses.
While MGM’s exit benefits competitors like Bally’s, Hard Rock, and Resorts World New York, Hornbuckle emphasized that the company is not abandoning Yonkers.
“We are committed to remaining a proud partner of Yonkers and New York State,” he stated in the conference call. “We will continue to operate the property as it is and believe it will thrive by serving customers in Yonkers and the surrounding areas.”