Less Than a Dozen High Roller Baccarat Players Cause $80m Dip in MGM Q3 Results
Baccarat is a popular form of gambling among high rollers due to the low house edge, fast-paced action, and high minimum bet limits. Many big spenders flock to the VIP rooms in Las Vegas casinos to enjoy this simple game, and they have a significant impact on the quarterly results of the casino giants.
an $80m dip in year-on-year table game revenue was mainly down to the play of just six or seven high rollers
As evidence of this, MGM Resorts International’s luck was out during its third quarter. The company’s Treasurer and CFO Jonathan Halkyard confirmed that an $80m dip in year-on-year table game revenue was mainly down to the play of just six or seven high rollers. He said: “This is the way this business is.” MGM experienced big swings in this segment, showcased by the $70m it made from baccarat in Q4 2023.
The company’s CEO and President Bill Hornbuckle also spoke on the earnings call on Wednesday, noting that gross profit would have risen 12% when taking the baccarat results out of the equation.
Only three of MGM’s ten Las Vegas casinos had lower revenue in the third quarter year-on-year, with Hornbuckle mainly putting this down to baccarat and scorching temperatures of up to 120 degrees during an eight-day period in July that hurt business.
MGM is now looking ahead to the F1 Las Vegas Grand Prix next month. While it hasn’t sold out rooms as quickly as it did for last year’s inaugural event, it claims demand is still strong.
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