MGM emphasizes youth movement, ‘International’ for growth strategy
MGM Resorts International is working to appeal to young gamblers who crave experiences more than material things as well as emphasize the “International” in its name.
MGM CEO Bill Hornbuckle on Tuesday kicked off Day 2 of the four-day 2024 Global Gaming Expo with a keynote address on how casino companies can continue to grow even after consecutive record-breaking years since the pandemic ended.
“A decade ago, the gaming industry was trying to figure out why we weren’t appealing to younger generations,” Hornbuckle said minutes before the G2E trade show floor featuring hundreds of slot machines and other gaming equipment was about to open.
“The mantra back then was, ‘Well, we’ll get them when they’re 50.’ That’s changed. In 2019, the average age of a casino visitor was, in fact, 50. Today, it’s one that we need to keep driving to stay on the growth. Millennials are the largest generation living today, along with younger Gen Z’ers. They’ll make up about four out of five workers globally in just five years, crucial to our industry’s future.”
Hornbuckle said the younger generation is more inclined to enjoy experiences than stuff.
“Millennials are experience-based,” he said. “I’m an old guy. I like stuff. I like cars, I like my stuff. My daughter likes her friends. They travel, they do things that I would never have contemplated spending that much money on at that age or that much of her net worth.”
As a result, Las Vegas is deemed more of an escape than a vacation.
“(Escape is) a great word for us. It’s a destination. People come for three days, they get the excuse I’m coming for a football game now or a hockey game. And the more we make that event-driven activity cases, the principle reasons of visitation here, the better off we’re going to be. And it is driven the age down because of that general principle.”
MGM also intends to maintain growth with new international destinations.
Its $10 billion MGM Osaka resort is under construction with a forecast 2030 opening date. Meanwhile, the company has eyes on entering the Brazilian market and the company previously has expressed interest in Thailand.
“We’re in 15 other countries, many of them European. We’ve launched BetMGM in the U.K. and in the Netherlands. We’ve got a couple other markets in mind and we’re heading to Brazil with BetMGM come January.”
Hornbuckle also said he’s pleased with the rebound in Macao where the company operates two resorts. The Golden Week holiday, which just concluded, showed increases in visitation and betting volume with an estimated 993,000 tourists — 142,000 a day — there for one of China’s biggest holidays.
