MGM Resorts: 3 Key Takeaways for Long-Term Investors

On its third quarter 2026 earnings call, held on Oct. 28, 2026, MGM Resorts (MGM -2.57%) announced flat occupancy and steady revenues despite travel cost headwinds in Las Vegas. For long-term investors, the valuation disconnect and international development plans create a distinct risk and reward dynamic. Three takeaways from management’s discussion highlight where the business is heading.

1. Capital Allocation Focuses on Share Buybacks and Japan Development

Management views stock repurchases and the flagship Japan resort project as its primary opportunities for allocating capital.

As we look at, really, the opportunities before us, it is going to be Japan. It is gonna be share repurchases. And we think that those are the two most important and remunerative ways to use our capital.
— Jonathan S. Halkyard, Chief Financial Officer

2. iGaming Serves as the Primary Growth Engine for Digital Expansion

Online casino gambling, known as iGaming, generates most digital revenues and helps insulate earnings from broader sports betting market swings.

IGaming drives nearly 70% of our net revenue from operations and remains our primary growth engine. Coupled with our dominant Nevada presence, these resilient channels generate the majority of our total revenue, insulating our performance from broader prediction market trends and concerns.
— Jonathan S. Halkyard, Chief Financial Officer

3. Osaka Development Progresses Toward a 2030 Opening Target

The planned resort in Japan requires about $1 billion in annual capital through 2028 to fulfill total equity commitments.

In Japan, we have spent approximately 114 billion yen to date and remain on track to deploy approximately 150 billion yen to 160 billion yen, or about $1 billion U.S. dollars, in each of 2027 and 2028, which will fully complete our funding commitments. The project remains on time and on budget for a 2030 opening.
— Jonathan S. Halkyard, Chief Financial Officer

Looking Ahead

The event schedule in Las Vegas is gaining momentum through major sports fixtures, and management anticipates cleaner demand patterns.

I do think that as we start to see the event calendar also improve in the fourth quarter and beyond, we will continue to see some stabilization of that leisure demand in those rates, particularly on the weekends.
— Ayesha Khanna Molino, Chief Operating Officer

The company relies on its scale, prime Las Vegas Strip real estate, and expanding international presence to maintain pricing discipline while monitoring airfare inflation.

Las Vegas remains irreplaceable. There is simply no other market in the world capable of matching its concentrated hospitality infrastructure, and unparalleled ability to execute mega events on a global stage.
— Bill Hornbuckle, Chief Executive Officer and President

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