MGM Resorts International (MGM): Business Model Canvas [Jan-2025 Updated]

MGM Resorts International stands at the forefront of the global entertainment and hospitality landscape, transforming the traditional casino experience into a multifaceted luxury destination. By strategically blending cutting-edge technology, immersive entertainment, and world-class hospitality, MGM has revolutionized how consumers perceive gaming and leisure experiences. Their innovative Business Model Canvas reveals a complex ecosystem that goes far beyond simple gambling, offering integrated entertainment solutions that cater to diverse customer segments from high-roller gamblers to digital gaming enthusiasts.

MGM Resorts International (MGM) - Business Model: Key Partnerships

Strategic Alliance with Entain

MGM Resorts holds a 50% stake in BetMGM, a joint venture with Entain plc. In Q3 2023, BetMGM generated $230 million in net gaming revenue. The partnership covers online sports betting and iGaming operations across multiple U.S. states.

Partnership Detail	Specific Data
Ownership Stake	50% MGM Resorts, 50% Entain plc
Q3 2023 Net Gaming Revenue	$230 million
Active States	21 states for online gaming operations

International Joint Ventures

MGM has significant international partnerships in gaming and hospitality development.

• MGM China Holdings Limited: 51% ownership in Macau gaming operations
• MGM Grand Paradise SA: Joint venture managing MGM Macau and MGM Cotai resorts
• Total investment in Macau operations: Approximately $3.4 billion

Technology Partnerships

MGM collaborates with leading gaming technology providers to enhance digital and operational capabilities.

Technology Partner	Collaboration Focus
Scientific Games	Slot machine and gaming platform development
IGT (International Game Technology)	Digital gaming solutions and hardware
Aristocrat Technologies	Gaming software and machine design

Entertainment and Hospitality Collaborations

MGM maintains strategic partnerships across entertainment and hospitality sectors.

• AEG Worldwide: Partnership for entertainment venue management
• Live Nation: Concert and entertainment programming
• UFC: Exclusive partnership for fight events at MGM properties

Government and Local Market Partnerships

MGM engages with local governments in key gaming markets to secure operational licenses and develop integrated resorts.

Location	Partnership Details	Investment
Nevada	Long-standing gaming license in Las Vegas	$12.5 billion total Nevada property investments
Massachusetts	MGM Springfield casino license	$960 million development investment
Maryland	MGM National Harbor casino license	$1.4 billion development investment

MGM Resorts International (MGM) - Business Model: Key Activities

Casino and Resort Operations

MGM Resorts International operates 17 properties across the United States, with a total of 49,000 hotel rooms. The company's total casino floor space spans approximately 2.3 million square feet.

Property Location	Number of Hotel Rooms	Casino Floor Space
Las Vegas Strip	29,000	1.4 million sq ft
Regional Markets	20,000	900,000 sq ft

Entertainment and Event Management

MGM Resorts hosts over 12,000 entertainment events annually across its properties, generating approximately $500 million in entertainment revenue.

• T-Mobile Arena capacity: 20,000 guests
• MGM Grand Garden Arena capacity: 17,000 guests
• Annual concert and performance events: 1,200+

Hospitality and Hotel Services

MGM's hospitality segment generates $6.2 billion in annual room revenue, with an average daily rate of $245 and occupancy rate of 82%.

Hotel Brand	Number of Properties	Total Rooms
Luxury Brands	5	12,500
Upscale Brands	8	25,000

Gaming Technology Development

MGM invests $180 million annually in technology research and development, focusing on digital gaming platforms and customer experience technologies.

• Digital gaming R&D budget: $75 million
• Customer experience technology: $105 million
• Technology patents filed annually: 22

Digital and Online Gambling Platform Management

MGM's digital gaming platform, BetMGM, generated $1.4 billion in revenue in 2023, operating in 22 states with over 4 million registered users.

Digital Platform	Annual Revenue	Registered Users
BetMGM	$1.4 billion	4.2 million

MGM Resorts International (MGM) - Business Model: Key Resources

Iconic Las Vegas Properties and Real Estate

MGM Resorts International owns 13 properties in Las Vegas, with a total of 36,752 hotel rooms as of 2023. Total real estate portfolio valued at approximately $22.6 billion.

Property	Location	Hotel Rooms	Casino Space
Bellagio	Las Vegas Strip	3,933	139,000 sq ft
MGM Grand	Las Vegas Strip	6,852	171,000 sq ft
Mandalay Bay	Las Vegas Strip	4,426	135,000 sq ft

Diverse Portfolio of Casino and Resort Brands

MGM operates 17 total properties across the United States, including:

• Las Vegas properties
• Regional casinos in states like Michigan, Maryland, and Mississippi
• Online gaming platforms

Strong Entertainment and Hospitality Talent Pool

MGM employs approximately 76,000 workers across its global operations. Workforce breakdown:

• 70% full-time employees
• 30% part-time employees
• Average employee tenure: 7.2 years

Advanced Gaming Technology Infrastructure

Technology investments in 2023: $325 million, focusing on:

• Digital gaming platforms
• Cybersecurity systems
• Customer data analytics

Extensive Customer Loyalty and Rewards Programs

M life Rewards program statistics:

Metric	Value
Total members	11.3 million
Active members	5.7 million
Annual revenue from loyalty program	$1.2 billion

MGM Resorts International (MGM) - Business Model: Value Propositions

Integrated Luxury Entertainment Experiences

MGM Resorts International operates 16 properties across Las Vegas and multiple states, generating $14.4 billion in total revenue for 2022. The company owns iconic properties like Bellagio, MGM Grand, and Mandalay Bay, offering comprehensive luxury entertainment experiences.

Property Category	Number of Properties	Total Revenue Contribution
Las Vegas Integrated Resorts	10	$8.7 billion
Regional Properties	6	$5.7 billion

High-Quality Casino and Gaming Offerings

MGM generated $6.3 billion from casino gaming revenues in 2022, representing 43.8% of total company revenue.

• Total gaming floor space: 2.3 million square feet
• Number of slot machines: 45,000+
• Number of table games: 2,500+

Premium Hospitality and Resort Amenities

MGM operates 53,000 hotel rooms across its portfolio, with an average daily room rate of $259 in 2022.

Amenity Type	Total Inventory	Average Occupancy Rate
Hotel Rooms	53,000	72.3%
Restaurants	120+	N/A

Diverse Entertainment and Dining Options

MGM hosted 15.7 million entertainment guests across its venues in 2022, with entertainment revenue reaching $1.2 billion.

• Concert venues: 25+
• Total dining establishments: 120+
• Entertainment events annually: 5,000+

Innovative Digital and Online Gambling Platforms

BetMGM, the company's online gambling platform, generated $588 million in revenue for 2022, representing a 100% year-over-year growth.

Digital Platform Metrics	2022 Performance
Online Revenue	$588 million
Year-over-Year Growth	100%
Active Users	1.3 million

MGM Resorts International (MGM) - Business Model: Customer Relationships

Personalized Loyalty Programs

MGM Rewards program has 15.3 million active members as of Q4 2023. The tiered loyalty program offers:

• Tier levels: Sapphire, Pearl, Gold, Platinum, Noir
• Points redeemable across 17 MGM Resorts properties
• Average member spend: $487 per visit

Loyalty Tier	Annual Qualifying Spend	Reward Points Multiplier
Sapphire	$0 - $5,000	1x
Pearl	$5,001 - $15,000	2x
Gold	$15,001 - $50,000	3x
Platinum	$50,001 - $150,000	4x
Noir	$150,001+	5x

High-Touch Customer Service

MGM operates 24/7 customer support centers with:

• Average response time: 2.7 minutes
• Customer satisfaction rating: 87.4%
• Multilingual support in 4 languages

Digital Engagement Through Mobile Apps

MGM Mobile App Statistics:

• 2.6 million monthly active users
• Digital check-in rate: 62% of hotel guests
• Mobile booking conversion rate: 41%

VIP and Premium Member Experiences

Premium Member Benefits:

• Complimentary room upgrades for top-tier members
• Exclusive access to 12 high-limit gaming areas
• Personalized concierge service

VIP Tier	Annual Value	Exclusive Benefits
Platinum	$75,000+	Priority reservations
Noir	$150,000+	Personal host, private events

Regular Customer Communication and Feedback Channels

Customer Feedback Metrics:

• Annual survey responses: 127,000
• Net Promoter Score: 68
• Response rate to customer feedback: 94%

MGM Resorts International (MGM) - Business Model: Channels

Physical Casino and Resort Locations

MGM Resorts International operates 31 total properties across the United States as of 2024, with 17 located in Las Vegas. Key properties include:

Location	Number of Properties	Total Room Count
Las Vegas	17	44,795 rooms
Other United States	14	23,205 rooms

Online Gambling Platforms

MGM operates BetMGM, a digital gambling platform with:

• Active in 21 states for online sports betting
• Available in 18 states for online casino gaming
• $2.04 billion in digital revenue for 2023

Mobile Gaming Applications

Platform	Monthly Active Users	Download Statistics
BetMGM Mobile App	1.2 million active users	Over 5.8 million total downloads

Direct Sales and Marketing Teams

MGM employs approximately 3,700 sales and marketing professionals across various divisions, with an annual marketing budget of $487 million in 2023.

Travel and Tourism Booking Websites

MGM partners with multiple online travel platforms including:

• Expedia
• Booking.com
• Hotels.com
• Tripadvisor

Digital booking channels generated $1.3 billion in revenue for MGM in 2023.

MGM Resorts International (MGM) - Business Model: Customer Segments

High-net-worth Gamblers

MGM targets high-net-worth gamblers with specific characteristics:

Average Gambling Spend	$5,000 - $25,000 per visit
VIP Player Percentage	12.4% of total casino visitors
Total High Roller Revenue	$687 million in 2022

Leisure and Vacation Travelers

MGM attracts leisure travelers through diverse offerings:

• Annual Leisure Guest Volume: 14.3 million
• Average Stay Duration: 3.2 nights
• Average Room Rate: $279 per night

Convention and Business Event Attendees

MGM's convention segment provides significant revenue:

Total Convention Space	2.2 million square feet
Annual Business Event Attendees	1.8 million
Convention Revenue	$423 million in 2022

Entertainment and Concert Enthusiasts

MGM attracts entertainment-focused customers:

• Annual Entertainment Events: 1,200+
• Total Concert Attendance: 2.6 million
• Entertainment Revenue: $312 million in 2022

Digital and Online Gaming Consumers

MGM's digital gaming segment details:

Online Gaming Users	742,000 registered players
Digital Gaming Revenue	$567 million in 2022
Mobile App Downloads	1.3 million

MGM Resorts International (MGM) - Business Model: Cost Structure

Property Maintenance and Operations

In 2023, MGM Resorts reported total operating expenses of $10.7 billion. Property maintenance costs for their portfolio of 16 properties across Las Vegas and other markets represented approximately $2.3 billion annually.

Property Maintenance Category	Annual Cost
Physical Infrastructure Upkeep	$685 million
Utility Expenses	$412 million
Renovation and Upgrades	$518 million

Employee Wages and Benefits

MGM Resorts employs approximately 56,000 workers with total compensation expenses reaching $3.1 billion in 2023.

• Average employee salary: $55,357
• Healthcare and retirement benefits: $412 million
• Training and development: $87 million

Marketing and Customer Acquisition

Marketing expenditure for MGM Resorts in 2023 totaled $624 million, representing 5.8% of total revenue.

Marketing Channel	Allocation
Digital Marketing	$218 million
Traditional Advertising	$276 million
Customer Loyalty Programs	$130 million

Technology and Infrastructure Investments

Technology investments for MGM Resorts reached $412 million in 2023, focusing on digital transformation and operational efficiency.

• Cloud computing infrastructure: $87 million
• Cybersecurity enhancements: $65 million
• Digital gaming platforms: $156 million

Regulatory Compliance and Licensing

Compliance and licensing expenses for MGM Resorts amounted to $276 million in 2023.

Compliance Category	Annual Cost
Gaming Licenses	$124 million
Regulatory Reporting	$87 million
Legal and Compliance Staff	$65 million

MGM Resorts International (MGM) - Business Model: Revenue Streams

Casino Gaming Revenues

In 2022, MGM Resorts International reported total casino revenues of $6.9 billion. The breakdown of casino gaming revenues includes:

Location	Casino Revenue ($M)
Las Vegas Strip Properties	3,425
Regional Markets	2,175
International Operations	1,300

Hotel and Resort Accommodations

Hotel revenue for MGM Resorts in 2022 totaled $3.2 billion, with the following key statistics:

• Average Daily Rate (ADR): $246
• Occupancy Rate: 78.5%
• Total Room Inventory: 16,629 rooms

Entertainment and Event Ticket Sales

Entertainment revenues in 2022 reached $412 million, including:

Venue Type	Revenue ($M)
T-Mobile Arena	124
Park MGM Venues	98
Residency Shows	190

Food and Beverage Services

Food and beverage revenues in 2022 totaled $2.1 billion, distributed across:

• Fine Dining Restaurants: $876 million
• Casual Dining: $642 million
• Bars and Lounges: $382 million
• Catering and Events: $200 million

Online Gambling and Sports Betting Platforms

Digital gaming revenues for 2022 were $324 million, with the following breakdown:

Platform	Revenue ($M)
BetMGM Online Casino	187
Sports Betting Platform	137