The letters MGM have long been synonymous with casinos, hospitality, and entertainment. For decades, MGM Resorts has managed dozens of high-profile casinos and hotels on multiple continents, with MGM also dipping its toe into the growing sports betting and online casino industries in recent years.
However, MGM’s reign could soon be coming to an end, or at least undergoing a significant change.
Media mogul Barry Diller, who runs People Inc., is attempting to become the controlling shareholder of MGM Resorts International. People Inc. already owns 26.1% of MGM Resorts, and under Diller’s proposal, it would take ownership of over 50.1% of MGM’s shares, giving it controlling interest, at a cost of $18 billion.
Nothing is set in stone at the moment, as the MGM board will need time to consider the proposal, which was made in June. But such a transaction would be massive in an ever-changing industry.
With one of the biggest names in casinos and hospitality potentially undergoing a drastic change, it’s worth taking a look back at how MGM became such a giant in the industry in the first place.
Origin Story
MGM Resorts began with a man named Kirk Kerkorian. He was the owner of the Metro-Goldwyn-Mayer film studio, which is the origin of the name MGM. In 1969, Kerkorian built the International Hotel, which at the time was the largest hotel in the world.
Four years later, Kerkorian also built the MGM Grand Hotel, which overtook the International Hotel as the biggest in the world. Amidst a movie theater, upscale shops, and extravagant decorations, the centerpiece of the MGM Grand was the largest casino in the world, making MGM synonymous with casino gaming.
Bigger and Better
The opening of the MGM Grand Hotel and Casino in 1973 was soon followed by the MGM Grand Reno. Those two hotels and casinos found so much success that it forced MGM to separate that business from the film studio.
By the mid 1980s, Kerkorian was focused on either acquiring or building more properties under the MGM Grand name. In 1993, after spending $1 billion, the MGM Grand Las Vegas and the MGM Grand Adventures theme park opened.
While the theme park closed less than a decade later, the MGM Grand remains one of the most prominent hotels and casinos on the Las Vegas Strip.
Keep Building
By the turn of the century, Kerkorian had given up control of MGM Grand, but the company was still building. MGM acquired Mirage Resorts, further adding to its portfolio of properties.
At the same time, MGM made it a point of emphasis to develop properties far from Las Vegas, conquering markets in the UK, China, and Japan, as well as American cities like Chicago, Detroit, and Atlantic City.
Of course, some of these properties were tropical resorts and entertainment centers rather than casinos, although gambling remained the backbone of the company.
The Online Space
In 2018, a Supreme Court ruling opened the door to legal online sports betting in the U.S. Already operating an online sportsbook in Nevada, BetMGM was quick to form a partnership with GVC Holdings, a well-known gambling operator in the UK.
This partnership allowed the company to launch BetMGM, an online sportsbook that’s become one of the most competitive in virtually every state where mobile sports betting is legal. In the years to follow, BetMGM forged partnerships with several pro franchises and leagues, helping secure BetMGM’s place among the elite online sportsbooks.
Going hand-in-hand with BetMGM was an online casino that initially launched in 2017. At the time, the online casino was only available in New Jersey, but as other states have adopted online casinos, BetMGM’s online casino has expanded.
As an established and trusted brand in the casino industry, MGM compares favorably with many of the other online casino options available in a growing industry. With so many choices, players can use sites like casino.com/us/ to read reviews and compare various casino platforms.
The Future
Given the offer on the table from People Inc. to become the controlling partner of MGM Resorts International, there is some level of uncertainty about the company’s future. Of course, MGM is no stranger to change. Over the years, it’s experienced both success and failure.
The company has always been ambitious, which has resulted in both expansion and setbacks. No matter who controls MGM, that’s unlikely to change. The name MGM still carries weight when it comes to hotels, casinos, resorts, and entertainment, and that reputation will continue to carry the company into the future, no matter what comes next.
