Even though the New Jersey casino industry is receiving a lot of attention right now, due in large part to its push into legalized online gambling, now is not the time to fall asleep on Las Vegas.
MGM Resorts International is one of many companies looking to make waves in the near term. With a new revenue boosting and cost cutting strategy in place, the casino giant is confident it can boost revenue by $300 million, pre-tax, by 2017.
While this is a lofty goal, it is one that MGM is in position to reach. And not in the ways that many people would expect.
A Unique Approach
When most people think about a casino boosting revenue, the first thing that comes to mind is new games and more rooms. This isn’t the approach MGM Resorts International is taking.
Consider this: the company has plans to purchase food direct from ranchers and farmers. Along with this, it will eliminate the use of different types of linens and towels in its resorts.
As if all that is not enough, it is taking a different approach to the way it prices its shows. Rather than fixed rates, MGM will price tickets based on demand. This could lead to a decreased per ticket price but an overall increase in the number of people in the seats.
With better than expected second quarter results ($97.5 million), MGM is already moving in the right direction. There is plenty of work to be done if the company is to reach its goal by 2017, but to this point everything is going as planned.