MGM Resorts International (MGM) — Q1 2026 Earnings Call Transcript

Thanks, Rocco. Welcome to the MGM Resorts International First Quarter 2026 Earnings Call. This call is being broadcast live on the Internet at investors.mgmresorts.com, and we have also furnished our press release on Form 8-K to the SEC. On this call, we will make forward-looking statements under the safe harbor provisions of the federal securities laws. Actual results may differ materially from those contemplated in these statements. Additional information concerning factors that could cause actual results to differ from these forward-looking statements is contained in today's press release and in our periodic filings with the SEC. Except as required by law, we undertake no obligation to update these statements as a result of new information or otherwise. During the call, we'll also discuss non-GAAP financial measures when talking about our performance. You can find the reconciliation to GAAP financial measures in our press release and investor presentation, which are available on our website. Finally, this presentation is being recorded. I'll now turn it over to Bill Hornbuckle.

Thank you, Howard, and thanks again to all of our employees. Their continued dedication and execution drove another gold-plus NPS record-breaking quarter, reinforcing the strength and sustainability of our business and our ability to deliver unique and lasting experiences that people find incredibly exciting. MGM Resorts once again delivered consolidated growth in the first quarter, driven by strength in digital and China. Net revenue for Las Vegas in Q1 grew on a year-over-year basis for the first time in over a year despite an exceptionally strong leisure comparative. We achieved this with solid group and convention business in the first quarter, and we expect this to carry into the second quarter. The first quarter is simply our seasonally strong group and convention quarter of the year, and we experienced robust business related to both citywide conventions like CES and ConAg as well as in-house programs at Mandalay and MGM Grand. We achieved record first-quarter convention ADRs and catering and banquet revenue and drove increased production from our strategic relationship with Marriott. Importantly, we expect this momentum to continue in the second quarter with convention room night mix up 2 percentage points year-over-year to 20%. As the city evolves, we are making sure we are leaders in innovation. The MGM Gaming Streaming Lounge, which opened at Park MGM and received all regulatory approvals during the quarter, is another exciting step. We developed a premium creator environment where gaming stories can come to life with plans to integrate celebrities into both the content and the broader guest experience. Another theme in our Las Vegas business has been our value. MGM has always offered opportunities for our guests seeking value experiences. This quarter, we challenged ourselves to be more creative and launched an all-inclusive experience that bundles hotel, dining, entertainment and all parking and resort fees. Guests can now choose to stay at Luxor or Excalibur with access to a wide range of dining options across five MGM properties. The feedback we're getting from guests is very positive and roughly one-third of the bookings are from first-time Las Vegas visitors. The program enhances our ability to convey our value proposition in innovative ways that resonate with our guests. Ultimately, Las Vegas' true value lies in delivering iconic one-of-a-kind experiences. We look forward to welcoming the Super Bowl back at Allegiant Stadium in 2029, particularly given our proximity to the venue, which drove outsized benefits during the 2024 Super Bowl. In the near term, Allegiant will host a College Football Playoff National Championship in 2027 and the Final Four in 2028. That same year, the Aces are set to begin their inaugural season in Las Vegas. During the quarter, Las Vegas has also been named a Target City for the NBA expansion team, and we are actively engaged in discussions with the league and respective team owners. If successful, no U.S. city will have assembled all four major professional sports leagues faster than Las Vegas. The ability to attract professional sports franchises and tentpole events exemplifies Las Vegas' structural resilience. The city consistently advances through challenging operating environments by evolving alongside customer demand. Today's consumers are decisively gravitating toward live events and experiential travel in Las Vegas and MGM is capturing that momentum. Las Vegas' ability to adapt its mix, its pricing and entertainment continues to differentiate the market and reinforce its resilience through economic cycles. Our regional operations have maintained steady market share, strong casino volumes and reported solid results for the quarter, reflecting the premium positioning of these properties and their ability to drive consistent, reliable performance. At MGM China, we grew net revenues by 9%, while segment adjusted EBITDA was impacted by our new brand fee. Jonathan will remind you of those details in his section. Our market share for the quarter was 15.4%. And while February was negatively impacted by hold, we concluded the quarter in the month of March with a share of 17.3%, which has held steady into April. We continue to invest in our competitive advantages in premium mass to support future growth and the suite conversion and renovated premium gaming areas at MGM Cotai were recently completed ahead of the upcoming Golden Week holiday. The next capital projects will involve renovating the suite product in Macau if we want to ensure our offerings stay fresh and ahead of market growth. While we will continue with targeted capital spending, we believe our operating expenses are appropriately sized and scaled to match our growth profile and our margins are sustainable. At the BetMGM North America venture, Adam and Gary reported first-quarter results a few weeks ago. We continue to prioritize the iGaming segment where underlying fundamentals are healthy and growing, and we are approaching $2 billion in annual revenue from operators. We are moderating spend in sports to focus on returns, while our online sports business also continues to grow, and we remain focused on driving profitable growth and margin. Our core strengths remain unchanged: iGaming, multi-product states, our omnichannel presence in Nevada and our focus on premium mass sports players. We remain disciplined and focused on executing our strategy in areas where we have a competitive advantage. MGM Digital reported another quarter of double-digit revenue growth as it continues to make progress towards profitability. Sweden and the U.K. continue to drive our LeoVegas B2C business, where the top line grew over 30%. These are also the next two stops for our sportsbook integration, further validation of our acquisition of Tipico's U.S. sportsbook technology. We're continuing to invest in Brazil and plan to leverage our global marketing assets and in-house sportsbook capabilities on the significant World Cup opportunity later this year. And in Japan, over 40% of the foundation piles have been installed or completed. The first concrete floor has been poured, and the first structural steel has been erected. I recently visited and approved our model rooms, which I found exceptional, and we are opportunistic as ever, keeping in mind we expect to be the sole licensing and operator in Japan upon opening. The population and visitation metrics are massive, as we've discussed: Japan has over 120 million residents and hosts over 40 million international visitors annually. MGM Osaka remains on time and on budget for a 2030 opening. For the first quarter of 2026 complete, our optimism across all various business segments continues to hold firm, especially in Las Vegas. We remain on track for growth this year. With that, I'll now hand it over to Jonathan to provide additional details on our performance this quarter.

Thanks, Bill, and I'll certainly join you in thanking all of our employees for their continued hard work and dedication this quarter. We really value our daily contributions and appreciate everything you support our company and our guests. In Las Vegas, as Bill mentioned, we were able to grow net revenues despite the strong leisure comparison in the prior year. Segment adjusted EBITDA decreased by $62 million which can be explained by just two items: an increase in self-insurance expense of $37 million and a decrease in business interruption proceeds of $31 million versus last year. Now that we're into the second quarter, comparisons in our leisure offerings should become more normalized, especially towards the latter part of the period. We're encouraged by the incremental momentum driven by our all-inclusive program as well as the convention strength we have on the books. Our regional operation proved resilient in the first quarter, exhibiting top-line growth of 2%. And similar to the Las Vegas story, segment adjusted EBITDA decreased by $20 million, in part due to an increase in self-insurance expense of $9 million and a decrease in business interruption proceeds of $10 million versus last year. Borgata and National Harbor also faced some weather-related disruptions, but we ended March on a very solid footing, and those trends continued into April. We closed on the sale of the Northfield Park operations earlier this month. So just a reminder for your models, Northfield Park will no longer be in our regional operations going forward. As usual, though, we'll provide same-store results for easy comparison. Before diving further into our other business segments, I do want to briefly address this external factor that continues to pressure operating costs across our industry and drove a meaningful portion of the increase in our self-insurance expenses this quarter, and that's the growing prevalence of frivolous litigation often backed by large pools of capital, including private equity. As we noted earlier, we were negatively impacted by $37 million in Las Vegas and $9 million across our regional operations this quarter. While we support a fair and balanced legal system, claims that lack merit divert capital and management attention and resources away from investments to benefit employees, guests and our communities. We're focused on what we can control, which is enforcing high standards and process and the other operational elements of our business with the utmost care. Now let's move on to MGM China, which exhibited solid performance in the first quarter. The decrease in segment adjusted EBITDAR of $13 million was primarily driven by the new branding agreement through which we received $23 million more in fees than in the prior year period. As a reminder, the brand fee increased from 1.75% to 3.5% of revenue starting this year. While this impacts segment adjusted EBITDAR, it results in higher cash flow for MGM Resorts. Moving to digital. Our BetMGM North America venture's first-quarter results reflected continued successful execution of a refined player management strategy, delivering 6% growth in net revenue from operations and 11% growth in adjusted EBITDA. This was also the first quarter where we earned branding fees from BetMGM, which amounted to about $1.5 million. Separately, no quarterly distributions were made in the first quarter given the seasonality of cash outlays, which included marketing investments around NFL postseason and March Madness as well as accrued annual compensation payouts. MGM Digital drove growth in net revenues of 43% in the first quarter and reported segment adjusted EBITDA losses of $26 million. We are continuing to migrate our sportsbooks to our in-house platform such as BetMGM Sweden, and are investing in the opportunities presented by the upcoming World Cup in both Europe and Brazil. Specific to Brazil, we continue to have confidence in the total addressable market, and we may drive investment beyond our original guidance, reflecting regulatory and tax developments as well as competitive intensity as we pursue our long-term share objectives, and we'll keep you posted as the year progresses. In Japan, we are expecting our funding for the year to be approximately $200 million to $225 million after investing approximately $140 million in the first quarter. Much of it will be addressed with proceeds from the yen-denominated credit facility we closed last October. So in essence, it's prefunded for this year. For the quarter, we bought back about 2.5 million shares for $90 million. Over the last five years, we've decreased our share count by almost 50%. As a reminder, and I can't help myself — we sold Northfield Park for a 6.6x trailing EBITDA. That's a multiple significantly higher than what is implied by our current share price. With the transaction now closed and the proceeds received, we have increased flexibility to redeploy capital, including reaccelerating share repurchases at our current valuation levels. I'll turn it back to Bill.

Thanks, Jonathan. Before we go to questions, maybe I'd like to reiterate just a couple of things that were said. Obviously, our diversification strategy is proving successful. Consolidated revenues, again, should grow over 4% and Vegas for the first time in six quarters also showed growth at the top line. And as I think about the balance of the year, our group and convention business looks strong. Obviously, we have the benefit now of the MGM rooms for the entire year. We have easier leisure comparatives coming up. And the high end continues to demonstrate itself not only in gaming, but in non-gaming spend event-driven to be sure and live entertainment to be sure it absolutely shows up and shows up often. And regionally, despite headwinds and the ones that were mentioned in the overall economy, we've seen a solid performance, and we expect to continue to see through the balance of the summer. MGM Macau continues to hold on to a major market share. We're very proud of what's been created and what they're doing there. And we do believe costs and our margins are sustainable now throughout here. And Japan is off to a great start, albeit early, but we're excited by our progress. We're excited about the design and ultimately, the market that it will provide. And then BetMGM continues to track along and you've seen additional and tremendous growth in overall digital business for rest of world. So with that, Howard, I will turn it open to questions.

A lot of information here, and I took note of the all-inclusive offerings that you decided to introduce, I think, earlier in the quarter. Can you just talk about what kind of response you're getting to that? Is that a strategy that we could see you deploy in other properties or other areas of the portfolio?

Sure, David. We've been really pleased with the response to the all-inclusive package. We've seen steady momentum since we first deployed that and the customer response has been very good. As Bill noted in his remarks, we're also seeing a significant portion of those customers as net new customers, which we believe is a positive trend line. We're going to continue to evaluate it, understand customer response, understand whether there are new strategies we could deploy alongside it and whether it needs to be scaled to other properties. So we're going to continue to watch it and refine it over time, but we have been pleased with the reaction to date.

Understood. And if I can just as my follow-up, talk briefly about Macau. Having been over there, the operations and the commentary seem relatively stable. But it's always been a market that tends to have surprises around every corner now and again. How are you looking out at the rest of the year in general terms or qualitative terms? And how do you feel about sort of how that market rolls through the rest of this year? And that's it for me.

Thanks, David. I'll kick it off and then Kenny can turn it over to you. Look, I think we feel really good about the balance of the year. We brought on many things last year in terms of capital enhancements and just the overall product, and we're excited by that. We've got some more to go. So we're adding some more suites, which will be beneficial. I think everybody understands we're still undersuited, and that will be beneficial. It's always difficult to say Macau is stable, but I feel good about it. I feel very good about our market position and what we're doing and how we're doing it. Kenny, I don't know if you want to add some more color there.

Thank you, Bill. This is Kenny from Macau. As we all know, Macau has always been competitive from day one. The Macau market is a premium one. It's not simply about supply. It's not purely a quantity play. It's more about quality, so it's about understanding and serving the purpose of the target guests. Here at MGM China, first, we are very focused on the products and services. We want to make sure they are meaningful, effective and targeted to the premium customers. As Bill just mentioned, we opened 63 suites at MGM Cotai. You won't source such products in the Greater China area. They are unique. They are different. they are refreshing and cozy. We opened them for a week and our customers loved it. Also, we just opened about 40,000 square feet of premium gaming space at Cotai; we have about 40 tables and 15 private rooms. This is also new in design and construction of service there. I can see a lot of customers that are better playing even right now. Secondly, we'll continue to refresh our products. For example, we are in the design stage of about 100 suites at the MGM Macau side and also some gaming spaces and F&B outlets. We want to spend money wisely to really reflect the purpose of serving the customers who come to Macau. It's not a typical hospitality or resort product; it's serving targeted premium guests. Secondly, I want to say MGM has developed a unique corporate culture here that encourages from senior management down to team members to react fast and effectively to make changes and develop products and services that evolve with fast-changing customer tastes. So actually, reinvestment CapEx, products and services, they are one package. It is a package about how we take care of customers, and I think that's the key for us to continue to grow for the rest of this year and next year.

Bill or Jonathan, whoever wants to take it. I was hoping to talk a little bit about the Strip and the health of the customer base there. It seems like you're talking about this evolving health. Can you maybe talk about how the first quarter progressed and how you saw that resonate in your customer base? And then expectations for how the second quarter should evolve given your competitor last night had some comments on April?

Yes. I'll start and Jonathan can kick it off. Look, we had — interestingly, in the quarter, we had an amazing January last year, so we had a tough kickoff mostly in gaming. But as the quarter progressed, I think you heard yesterday, ConAg was tremendous. And so as the quarter progressed, each month got successively better, March being our best month yet. The market has changed. The consumer has changed — luckily for us, we have a lot of luxury product and brands that can cater to that, and it's going to continue. Despite many headwinds, whether they be air or gas, we have yet to see a slowdown. That doesn't mean over summer that can't happen because booking cycles still remain short. But we feel resilient about it. We feel good about it. We see air traffic coming into the community. Half of the traffic that was lost when Spirit reduced capacity has been picked up. We see a couple of additional international flights coming into the market. It's a little early to tell what gas prices will mean to all of it, but to date, we feel good about it. Our April is fine. We just had a very successful Baccarat Tournament here last weekend. May will be a good month. So we like the second quarter, but it's early — it's just the end of April — and time will tell on these short-term bookings and where leisure will ultimately go.

Got it. And then just on that self-insurance, $37 million, I think that you guys had a $13 million charge last year, maybe in the third quarter. Is this something to think about more commonly that this could be impacting results and bearing in mind it does sound onetime in nature? Any better clarity or a way to think about that going forward?

Sure, Dan. It's Jonathan. We certainly hope not. Historically, we do an examination once a year. We, of course, expense an amount every month, but we do a bit of a true-up once a year after that experience, and you remember correctly that we did it twice this year. The impact of that examination is this additional accrual that we took across our businesses in the first quarter. So we — of course, we expect that that's adequate now. But on the other hand, it has been an increase in cost in our business. It's the reason I wanted to call it out. Clearly, but for that charge, our results this quarter would have been, I think we'd all agree, much better on an operating basis. But we certainly hope that that's not going to be anything that recurs; in fact, it is an unusual onetime item.

So Bill, I want to stay with Vegas here for a little bit. Obviously, you noted you feel better about that value customer. It seems like the customer base is now somewhat stable. So I guess the question is based on what you're seeing right now from a forward demand perspective, coupled with that healthy group and convention business, do you think it's going to be possible to grow Vegas EBITDA this year? I mean, you obviously kind of talked about the second quarter and you feel pretty good there. But the first quarter obviously didn't put you guys off to the best start.

Thanks, Steve. The one comment I want to be clear about is the leisure customer at the lower end of the set — for us, obviously, it's Luxor or Excalibur. Midweek is still a challenge. The good news is those two properties represent about 6% of our overall EBITDA. On the weekends, we are fine; the balance of the portfolio is performing from fine to good. To answer your core question, we do see growth through the balance of the year. It's going to be tempered modestly, and it's got to be tempered with the crazy world out there right now. But based on what we see, particularly in advanced bookings, we remain optimistic that we will have growth by year-end.

Okay. Got you. And then second question, we heard last night from Caesars, and obviously, you probably listened to that call, that they've been starting to work a little bit more aggressively with the LVCVA to help find and identify bigger events or corporations to bring into the Vegas market. Wondering if you could maybe expand on that a little bit more? And help us understand if you're involved in that process and potentially what the potential upside could eventually be there?

Well, at 40,000 feet, yes, we're involved. Gary Fritz, who's sitting next to me, is on the board, so we have been and we'll continue to be active. I think you know this about our business. Remember, we have over 4 million square feet of our own convention group space. We're big into tech. That sector continues to grow and it's looking exciting. We've got some really good groups lined up for the summer. Google is coming back and a few others. So the question becomes, because ConAg rotates, are there other groups in the world like ConAg — the answer is yes, there are — and yes, we have been cooperative and will go on with them from time to time to pursue some of this stuff. It is true that some of it is political in that these groups mean a lot for each of the communities that they're currently in, whether it's San Francisco or Dallas. So they're not always easy to pick up on purely value proposition. But no, we are active. We agree with the sentiment that was laid out yesterday, and we'll continue to pursue it.

So I wanted to key off of that question earlier on about the all-inclusive effort and encouraging commentary around first-time visitors to Las Vegas. You guys obviously have a decade of data in terms of first-time visitors to Las Vegas. Maybe you could open the hood and share some metrics on sort of what a typical first-time Vegas visitor behaves like, what the retention is like for a second trip, what you kind of can assume for flow-through and profitability for that guest versus the corporate average?

Brandt, I think the core thing to remember about first-time visitors is that historically, visitor profile indicated that roughly 20% of visitors were first-time. Over recent years, that number has been in the mid- to low-teens; it dropped below and was 8% to 9% last year. The noise around Canada is real — our general Canadian business is down 30% to 40%. Obviously, we hope to improve that. We've had a couple of missions up into Canada as a convention center and ourselves to help that; I think we have one plan later this summer that I'm actually on. In terms of behavior, international has always been a big play there. Mexico opened up a few years ago meaningfully with air traffic. The majority of first-time visitors actually many of them come through conventions — they come because they have to, they're told to — and then they learn about this place and want to come back. They come back with family and friends. So I think the only real differentiator for now is that international is hurting that number. To see it grow again through this package has been great because it's important for the future growth of Las Vegas.

In terms of customer behavior, we're certainly seeing customers engage in all aspects of the business. We're pleased with the response. Generally, from a flow-through perspective, we're happy with the results, and so no concerns there either.

Great. Second question would be a follow-up on Macau. Looking at the first quarter, obviously, we're in a new structure with the management fee change and those margins were below what you've talked about in the past. Under the new structure and considering your comment about March's exit rate for market share being a bit better than in the first quarter, how should we think about target margins for that segment under this new structure?

It's Jonathan. I'd certainly invite Kenny to comment as well. But even with this new structure, before the branding fee, we expect the property to continue in the mid- to even high-20s in terms of its property-level margin. Reducing that EBITDA by the amount of the new fee would get you to the new going-forward margin. But I think we feel safe in the mid-20s.

I wanted to ask a question or two about the digital business. Revenue growth in the quarter was really strong, a little bit more than we thought. Is that a comparison to heavy marketing in Brazil last year? Was there something else in terms of revenue uplift? And then my follow-up: how do we think about the timeline to profitability in MGM Digital from here?

It's Gary. Thanks for the question. The real growth engine on the top line for the digital business has actually been the LeoVegas consumer business. That's concentrated in Europe with particular emphasis on the U.K. and Sweden. We've also had a lot of success launching the business in the Netherlands and expanding it there. Brazil helps, obviously, because it comps against very little revenue. But the core LeoVegas consumer business is growing north of 30% year-over-year. So it's not all down to Brazil. In terms of the path to profitability, we've indicated in the past that we would see the digital segment's loss narrow this year relative to last year. We might see a little bit more investment this year than planned, given regulatory changes and tax changes in Brazil. But we're anticipating the loss to materially narrow year-over-year, which then sets us up in 2027 for close to a breakeven year, if not reaching profitability.

For whoever wants to take it, Bill, I think you mentioned a bit earlier that you were still seeing a bit of midweek softness. You called out a pretty large dynamic between your high and low properties. Can you update us on the trend line you're seeing there right now? Obviously, the all-inclusive offer should help narrow that gap as we get towards the summer. But in terms of what you're seeing right now and trying to put into context the RevPAR performance for the company relative to some market numbers out there, which I think would have bridged a bit higher?

With regard to RevPAR, we look at it in a couple of different ways. Overall, we think the fundamentals are healthy from a RevPAR perspective — from an ADR and occupancy perspective, particularly among the luxury portfolio, we're seeing real stability and growth in some segments, and forward indications remain good. In terms of the lower end of the portfolio, we had seen some softness starting toward the second quarter of last year, and that's been pretty consistent. We have been deploying strategies against it, such as the all-inclusive program and overall cost control, and I think that's been productive. We're continuing to watch closely as the summer unfolds. As Bill noted, we feel pretty good about the weekends and we're seeing evidence of more stability as the year progresses, whether that's convention group business stabilizing or programming in the South Strip and Allegiant positively impacting those properties.

Shaun, remember MGM has about 54,000 more room nights in the bucket this year because rooms were offline last year. That's clear math and will make an impact.

Yes, fair point on that. And then as a follow-up, but probably a good segue off Allegiant, Bill you mentioned a little about the NBA, which is a pretty exciting development. It may be too early to speculate, but I think you have a lot of vested interest in making sure that that ends up at one of your venues. Can you talk about the strategy there for the city and MGM's element to the extent you have a hand in possibly where either a purpose-built stadium ends up or if one of the venues that exist right now could be used for that?

I appreciate the question. I'm already under three NDAs. The NBA has earmarked Las Vegas and Seattle. We've had huge interest and whether T-Mobile becomes the ultimate site or not is to be decided by the Board of Governors sometime next year. We're excited by it — how could we not be. We've seen what hosting professional sports teams has meant for Las Vegas. T-Mobile is part of that conversation, whether short-term or long-term. The league has expressed interest to host a team as early as 2028, so we're intimately involved in many of those conversations. I believe we'll know by this time next year. A process is beginning to start. We've been asked how we would position T-Mobile for any and all bidders, and we're beginning to do that with our partner at AEG and Bill Foley. We're open to all comers and there has been extensive interest in Las Vegas. It's very exciting.

I'm wondering if the current Iran conflict has impacted your UAE non-gaming project and its timeline? And then do you believe there's still a chance you could get gaming there or in Abu Dhabi?

Barry, it hasn't impacted the ultimate timing, i.e., construction. A Chinese state-owned company who is building the project continues, and the project remains on schedule. We have not heard nor do I think we will — given the environment — whether gaming will be permitted or not. To remind everyone, we're holding 250,000 square feet of space for a potential casino on one of the podium floors there. So it could be very exciting. For us, that is our key focus. Right now, the regional tourism business is down and occupancies are lower, so it will take some recovery time no matter what happens over the next couple of months. But long term, we remain very excited. The project is fascinating and fabulous, and we'll continue to push both the agenda and the opening.

Great. And then just thinking on international development for Japan, I guess they've reopened the process for additional licenses in the country. Curious how you think that potentially impacts your 2030 project? And then as a follow-up with Iran, any impact to construction costs that you're seeing?

On the second question, no, not yet, although like everybody we watch inflation and costs. A lot of our concrete and steel has been contracted, which is good. We still have a long way to go — four years to the opening. Regarding Japan, they have started the licensing process and put dates on it that run through next spring. Time will tell given the scale and scope of what we went through previously. There are only two or three markets that could actually accommodate something of this scale, and whether there's political will is unknown. We've been working on Japan for many years — we're in our 17th year on this — so I don't expect quick impacts. If they were able to get better terms and conditions, that could help us. With 120 million people, I'm not overly concerned.

Can you hear me?

Absolutely, Stephen.

So Jonathan, you mentioned the multiple for Northfield versus the current trading was higher than where the baseline is. Does that make you reconsider monetizing other assets as a way to surface value? Are there things you see out there that could end up being sold or rethought to surface value?

It has highlighted the price of our shares. We've been fairly active in monetizing non-core assets over the last few years: the sale of The Mirage at a nice multiple, the sale of Gold Strike in Tunica at a similar multiple, and now Northfield Park. Those were done for strategic reasons, not purely to arbitrage multiples. The valuations just highlight a disconnect with the enterprise valuation. So in short, it doesn't cause us to suddenly look for more sales unless it makes strategic sense. We are guided by strategy and market positions when considering dispositions.

Fair enough. And then an unrelated question just on Macau. It looked like the mass market hold was better than the historical trend. Is there something structurally changing there as we think about player type, bet types or technology being implemented that could make that sustainable?

I'll make one comment and let Kenny comment. There's been an increase in proposition or side bets on some tables. That has changed the nature of the game and, frankly, the odds. Kenny?

Thanks, Bill. We are seeing increasing adoption of some side bets on gaming floors. As you know, side bets generally carry a higher house advantage than traditional games. We are rolling out more side bets this week at MGM following recent approval by the ICG. But the history of side bets in Macau is still relatively short; these games only got popular after the pandemic. Along with volatility in the premium mass market, we do not think it is the right time to adjust the theoretical mass hold. We will keep monitoring adoption, player behavior and GGR trends.

Wondering if you can talk about the international business in the first quarter and Las Vegas around Chinese New Year or Super Bowl as those comps have been fairly easy over the past couple of years. We're not anywhere near back to where the peaks were. But wondering if you're starting to see some nice improvement there that could carry forward throughout 2026?

Chad, yes, to a limited degree. The core issue has been the restriction on capital leaving China and its impact on our core Far East business. That has not been eradicated. We do see Mexico more than ever, and as I mentioned earlier, international rated play and premium-rated play remains healthy. The overall traffic decline is mostly driven by Canada. But regarding rated play, it's very healthy and that hasn't changed. I don't see anything out there other than macro developments that would change that anytime soon.

Okay. And then on LeoVegas or the digital business, we've seen some contraction in public multiples on affiliate companies and sports data companies and B2C given regulatory change. What's your appetite in terms of improving or growing the ecosystem from a tech standpoint to grow the business at a time when multiples might be attractive?

We feel confident about the assets we have. We were deliberate in assembling the portfolio; we didn't chase shiny new things. We turned over a lot of rocks and assembled what we have. We're largely fully deployed in terms of capital commitment to the International and MGM Digital businesses. I can't say never, but I don't see glaring holes in our portfolio that would drive additional capital deployment. It would take something extraordinary.

I've got one kind of two-parter. If I recall, maybe clarify, I think there was a small fine in prior-year first quarter. Does that stick out? And then maybe help us think about second-quarter last year in the correct base. In Las Vegas, you reported around $710 million, $711 million, but I think you flagged $60 million of headwinds: $20 million from MGM Grand, $20 million from some event spend and $20 million from hold. I guess if you think about the business today, do those three buckets still make sense to you? Or have things changed?

You're correct; there was a small fine in the first quarter of 2025 that affected our results. Second quarter last year, we were underway with the renovation at MGM Grand during the quarter that affected us for pretty much all of the year. We did have a negative impact on hold during the second quarter last year of roughly $20 million. So those are the two things I'd call out. This quarter, we have the benefit of MGM Grand rooms back. And as always, you never know how hold will go, but last year in the second quarter we were impacted negatively by hold.

And then, I guess, the event, the $20 million event, is that something to kind of forget about or how are you thinking about it now?

That was a VIP event that we had. Part of that was also reflected in the hold results that we had during the quarter. We do run VIP marketing events in our business; they're costly, but we think they're important for those customers and that segment. That particular event we had last year and we had again this year in the quarter, and it did well.

Thank you, operator, and thank you all for listening in. I hope we've shown that we're resilient and that this market is resilient. People remain excited by what we do — this weekend is another good example. We have Morgan Wallen here at Allegiant. Despite all the noise in the world, we're pleased with where we are and excited for the future. So thank you all.