Investment Thesis

, warranting a reevaluation of position sizing.

Competitive Moat

primarily driven by its intangible assets, particularly its brand equity and extensive portfolio of iconic properties on the Las Vegas Strip. This brand recognition fosters high customer loyalty and repeat visitation, which is critical in the hospitality industry. Additionally, MGM benefits from economies of scale, allowing for cost efficiencies that smaller competitors cannot achieve. The top competitive threats include rising online gaming platforms and increased regional competition from emerging casino markets, which could erode market share if not strategically managed.

Growth Engine

Future revenue growth for MGM will likely stem from the expansion of the online gaming sector, particularly through BetMGM, which capitalizes on the growing legalization of sports betting across the U.S. The total addressable market for online gaming is expected to grow significantly, with estimates suggesting it could exceed $30 billion by 2030. Geographic expansion in North America, combined with the recovery of Las Vegas tourism, positions MGM to gain market share organically, while potential acquisitions in regional markets could further bolster growth.