What Should We Expect From MGM Resorts in Las Vegas?

Now that Wynn Resorts (NAS: WYNN) and Las Vegas Sands (NYS: LVS) have reported earnings for the second quarter, the next big name to report will be MGM Resorts (NYS: MGM) . The Las Vegas-centric company had mixed earnings in the first quarter; its rooms, restaurants, and clubs were full, but gamblers stayed with competitors.

So what will the second quarter provide? Gambling is on the rise in Las Vegas compared to last year, and if MGM can get back to growing casino revenue, then rising room rates and expensive bottles at poolside cabanas won't have to make up the slack. Here's how the three public gaming companies' casino revenues stack up so far in 2011.


Casino Revenue Change Q1 2011

Casino Revenue Change Q2 2011

Las Vegas Strip(0.4%)13.6%*
Wynn Resorts39.2%35.1%
Las Vegas Sands(46.5%)2.1%
MGM Resorts(4.6%)N/A

*April and May growth vs. 2010. Las Vegas Strip revenue is only available for April and May.

Wynn Resorts is obviously taking share in Las Vegas, and it appears that the high end of the market is very strong. MGM plays in the high end market with the Bellagio, but most of its casinos cater more to a mass-market audience than big baccarat players. That makes this quarter an interesting one for the company.

MGM needs some serious deleveraging in the near future, given its $12.3 billion in long-term debt. With less exposure to Asia than Las Vegas Sands, Wynn Resorts, or Melco Crown (NAS: MPEL) , the company will have to rely on Las Vegas to provide the cash flow. When MGM reports earnings on Monday, we'll see just how far Las Vegas has come.

Interested in reading more about MGM Resorts? Click here to add it to My Watchlist, and My Watchlist will find all of our Foolish analysis on this stock.

At the time this article was published Motley Fool newsletter services formerly recommended Melco Crown Entertainment. Try any of our Foolish newsletter services free for 30 days.Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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