MGM report may suggest iGaming doesn’t affect traditional casinos

iGaming and online casinos in general may not have a negative impact on traditional casinos after all, according to new reports from MGM Resorts International.

Many states have been considering the legalization of online casinos and other betting opportunities, but some of the biggest opposition against the associated bills has been from traditional brick-and-mortar casinos. These often long-standing gambling businesses have expressed concerns that their revenue will decrease if gamblers decide to stay home and use online slots instead of playing in-person, perhaps even forcing them to lay off in-house employees.

Now, MGM is putting forth an argument that this may not be the case after all.

MGM casinos still going strong despite increase in iGaming

It’s possible that brick-and-mortar casinos were exaggerating the possible revenue decrease they’d experience from the legalization of iGaming and online gambling overall. MGM Resort’s chief executive officer and president, Bill Hornbuckle, stated that the casino actually saw an increase in activity and revenue growth at the end of 2024 and into the new year.

MGM Resorts International owns many large casinos across the United States. This includes the a major location on the Las Vegas Strip, as well what it calls its separate regional operations, including Borgata in Atlantic City and MGM Grand in Detroit. Between its groups, MGM reported $932 million in net revenues in the fourth quarter of 2024. This is up 7% from 2023. MGM’s regional operations revenue for the entirety of 2024 was $3.7 billion while Las Vegas’ was $8.8 billion.

MGM also reported that the company earned $140 million in revenue in the fourth quarter of 2024 from digital gambling. This is a 15% increase from the fourth quarter of 2023. This is due to MGM expanding into new online markets. Hornbuckle stated that the company’s digital businesses are “on a positive trajectory.”

Despite MGM’s online growth, their live casinos remained successful. This means that traditional casinos and iGaming operators may be able to co-exist in many states after all. It’s believed that they could be both appealing to different audiences and also provide a wide range of gaming opportunities for people to pick from. The strength of iGaming may even carry over to traditional casinos, exposing new players to games and betting opportunities they wouldn’t otherwise have explored and encouraging them to visit live casinos.

This hasn’t stopped some states from being skeptical, however. Indiana’s attempts at legalizing online casinos has been paused due to brick-and-mortar locations expressing fear over losing customers, and these arguments continue to play out across the country as a variety of states wade into the fresh waters of iGaming.