MGM’s CEO Says Las Vegas ‘Not Broken’ Despite Tourism Declines

As Las Vegas is struggling with visitation declines, MGM Resorts International CEO Bill Hornbuckle insists the city’s future is brighter than the headlines suggest.

Speaking during a Q&A session at the Global Gaming Expo (G2E) inside the Venetian Expo Center in Las Vegas, Hornbuckle painted a picture of resilience. He boldly claimed that the next 16 months would be the strongest convention stretch the city has ever seen.

‘Not Broken in Any Way, Shape or Form’

Hornbuckle acknowledged that Las Vegas has struggled this summer but dismissed the idea that the city’s tourism sector is in trouble.

According to the Las Vegas Convention and Visitors Authority, visitation was down approximately 10% across June, July, and August, and year-to-date totals trail those of 2024 by about 11%.

Still, Hornbuckle told attendees that he thinks the city “is not broken in any way, shape, or form.” He emphasized that 2024 was one of Vegas’ strongest years in recent memory, thanks in part to events like Super Bowl LVIII and the Las Vegas Grand Prix. He pointed out that 2024 was the casinos’ second-highest-grossing year ever.

More importantly, he said about the future: “I think about, literally, the next 16 months are going to be the best convention months this city has ever had or ever seen.”

Gaming Strength Versus Tourist Weakness

The MGM boss’s optimism comes at a time when the Strip is showing signs of paradox. Gaming revenue remains strong, but visitor numbers have sagged.

According to August data, Strip gaming revenue reached $679.3 million, representing an 8.3 percent year-over-year increase. Baccarat was the standout driver for the gaming performance, with revenue soaring 51% year-over-year. The increase was primarily driven by a higher hold rate, rather than increased play.

At the same time, visitation still declined in August compared to last year, down 6.7%. Hotel occupancy dropped to 77.5%, a decrease of nearly four percentage points. Meanwhile, the average daily room rate fell 7.4% to $162.38. Convention attendance also declined, falling 8% year-over-year.

Summer Slowdown & Cost Pressures

The tourism slump has been evident for months, with visitation declines persisting even as casino floors remained active. Still, while traditional leisure travel has slowed, marquee shows, high-end gaming segments, and niche operators have remained resilient.

The broader slowdown has fueled a debate about affordability in Las Vegas. Rick Harrison of Pawn Stars recently blasted local pricing, calling resort fees, parking charges, and other add-ons “insane.” His comments echoed the frustrations of visitors who are increasingly feeling priced out of the market.

In an effort to address some of those concerns, city officials and resort operators introduced the “Fabulous 5-Day Sale,” a citywide promotion offering discounts on hotels, dining, and entertainment. The campaign aims to counter the negative sentiment and stimulate bookings during the quieter stretch of the year.

According to local media, initial results have been promising:

• The campaign drove 7.5 times more booking interest than Black Friday and Cyber Monday combined.
• Nearly four times higher website traffic to VisitLasVegas.com.
• Almost 120 times higher website referrals from the sales page to the resort booking engines.
• Time spent on VisitLasVegas.com was nearly five times higher.

Cuts at the Margins

Meanwhile, some casino operators are adjusting their offerings in an attempt to respond to shifting consumer preferences.

Golden Gate Casino, Las Vegas’ oldest downtown casino, recently removed all of its live-dealer tables to replace them with electronic machines. Owner Derek Stevens said the move was a result of the success of another of his properties, Circa Resort & Casino. There, after the removal of live-dealer tables, the property “exploded in popularity.”

For Hornbuckle, operational efficiency is part of the solution. He explained that MGM has already introduced artificial intelligence into hotel operations, slashing its call-center staff from about 400 employees to fewer than 100.

Even so, he cautioned against relying on AI as a complete replacement, as it lacks the personal interaction that comes with face-to-face conversations.

Policy Headwinds

Hornbuckle also criticized federal policies that he believes hurt tourism. That includes the $250 visa integrity fee for international travelers.

Additionally, while he acknowledged that federal infrastructure spending under the One Beautiful Big Bill Act (OBBBA) was positive, other provisions, such as the tax deduction for gambling losses changes, further hurt Las Vegas. Hornbuckle remained optimistic that lawmakers would restore the 100% deduction.