MGM Resorts International (MGM) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that MGM Resorts International surfaced in its latest filing.

• MGM Grand Paradise's concession contract expires on December 31, 2032December 31, 2032
• New York Gaming Commission issued licenses for three integrated resorts in 2025, expected to increase competition in the Northeast corridor2025
• MGM took a 2025 non-cash impairment charge of the full amount of Empire City reporting unit's goodwill of $256 million2025
• Suspended primary gaming promoters in late 2021 and terminated contractual arrangements, leading to a substantial decline in gaming promoter revenueslate 2021
• Cybersecurity issue in September 2023 affected systems, resulting in operational disruptions, litigation, investigations, and potential regulatory penaltiesSeptember 2023
• The Macau government can redeem MGM Grand Paradise's concession from the eighth year with at least one year's advance notice, paying reasonable and fair damages
• Upon termination or redemption of the concession, casino premises and gaming equipment transfer to Macau government without compensation
• Third Renewed Deed of Non-Compete Undertakings restricts involvement in gaming businesses in China, Macau, Hong Kong, and Taiwan other than through MGM China
• BetMGM North America Venture with Entain plc requires consent of both members for all major operating, investing, and financial activities
• Concession to develop integrated casino resort in Japan in consortium with ORIX and other local investors
• Annual rent payments of $1.8 billion under triple net lease agreements, subject to annual escalators
• Financial covenant breach under leases requires cash collateral or letters of credit: 6 months or 1 year of rent under VICI lease, 1 year under Mandalay Bay and MGM Grand Las Vegas, Aria and Vdara, The Cosmopolitan leases, and 2 years under Bellagio lease
• Borgata's Legacy Plan of the UNITE HERE Retirement Fund is in critical status and subject to a rehabilitation plan, potentially requiring additional contributions
• Approximately 37,000 U.S. employees covered by collective bargaining agreements, some expiring in 20262026
• Macau government requires hiring only Macau residents as dealers in casinos
• MGM Grand Paradise remains obligated to pay taxes on uncollectible winnings from customers
• The Macau government can unilaterally terminate the concession for endangering national security of China or Macau, failure to perform obligations, public interest, or lack of appropriate qualifications