Gambling Business: MGM Says Revenue Up Thanks To Borgata Casino Purchase

Casino operator MGM Resorts said Monday that its revenue from the third quarter was up year-over-year, thanks in large part to the acquisition of Atlantic City’s top grossing brick-and-mortar casino.

Revenue was $2.52 billion in the quarter, compared to $2.28 billion in the same quarter last year. The casino operator won $1.3 billion from gamblers in the quarter ending Sept. 30, compared to $1.18 billion in Q3 of 2015. Slot revenue at the company’s casinos was up nearly 20 percent year-over-year.

Through the first nine months of 2016, total revenue was $7 billion, nearly unchanged from the same period a year prior. Casino win of $3.57 billion from the first three quarters of 2016 was down from the $3.7 billion won last year from Jan 1. to Sept. 30.

In Las Vegas, MGM owns properties such as Bellagio, Mirage, Circus Circus, Mandalay Bay, Luxor, Excalibur, MGM Grand and New York-New York. The company is currently in the process of opening a casino outside Washington, D.C. and in Springfield, Massachusetts.

MGM completed its purchase of Boyd Gaming’s 50-percent stake in Borgata in August. Buying out Boyd cost $900 million. The casino is still owed more than $100 million in tax refunds from Atlantic City, which is in jeopardy of a state takeover.

MGM said in a press release that diluted earnings per share for Q3 were $0.93, which includes $0.60 related to a $430 million gain on Borgata. The company had net income of 12 cents per share in Q3 of 2015.

“MGM Resorts produced a tremendously strong quarter, delivering the best net revenues…at our domestic resorts since 2007,” CEO Jim Murren said. “These results demonstrate the broad based commitment and contributions of the MGM Resorts team in executing the company’s strategic plan and delivering value to our shareholders.”

Buying out Boyd also gave MGM control over the largest online gambling business in New Jersey. Borgata had $45.7 million in online gaming revenue in 2015, nearly a third of the state total.

The licensed online gaming sites under Borgata are Borgatacasino.com, Borgatapoker.com, NJ.Partypoker.com, palacasino.com and palabingousa.com.

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