MGM Resorts International is looking to its online platform, BetMGM, as a key driver of growth for 2025. Deutsche Bank’s analyst Carlo Santarelli highlighted MGM’s pivot to digital operations, citing challenges in its traditional casino business due to rising costs and competition.
Recent fee hikes at MGM’s Las Vegas properties are expected to add $70 million in revenue next year. Santarelli also noted smaller strategies like tiered restaurant seating, which could improve profitability.
BetMGM, a joint venture with Entain, remains central to MGM’s plans. The company may aim to consolidate its stake further, mirroring its 2011 strategy with MGM China. Santarelli said, “BetMGM’s performance transparency will likely become a priority for investors in 2025.”
Meanwhile, MGM’s Las Vegas properties require 3% annual growth to maintain stable profit margins. MGM China, which had a strong start in 2024, faces rising costs, pressuring margins.
Despite challenges, MGM continues to reward shareholders through stock buybacks and is set to increase capital expenditures for projects like the MGM Grand Las Vegas renovations. If MGM secures a New York casino license, it would face a $500 million fee and upgrade costs.
Deutsche Bank’s $48 price target values MGM’s domestic, international, and digital assets, with BetMGM playing a critical role.
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