MGM CEO Says the Company ‘Lost Control’ of Pricing Narrative in Las Vegas
MGM Resorts’ chief executive acknowledged the company went too far with some prices, saying “shame on us”.
LISTEN TO THIS ARTICLE:Bill Hornbuckle, president and CEO of MGM Resorts International, publicly conceded this week that the company allowed certain prices in Las Vegas to damage its reputation with visitors. Speaking on the company’s third-quarter earnings call, Hornbuckle said the operator had “lost control of the narrative” over the summer and singled out specific examples that drew national attention.
“When we think about pricing and things that got everyone’s attention, whether it’s the infamous ($26) bottle of water or Starbucks coffee at Excalibur that cost $12, shame on us”, Hornbuckle said. “We should have been more sensitive to the overall experience at a place like Excalibur. To those customers, you can’t have a $29 room and a $12 coffee”. He added the company had gone back through its portfolio and implemented what he described as “price corrections”.
The admission comes as broader tourism data show strain in Las Vegas. The Las Vegas Convention and Visitors Authority reported that September marked the ninth straight month of year-over-year declines in visitation. Through September, the city had welcomed 28.9 million visitors, a drop of 7.8% compared with the same nine months in 2024.
Price perception is not the only factor weighing on demand, but executives at the Strip’s largest operators now acknowledge it is part of the problem. MGM and Caesars Entertainment – the two biggest casino companies operating on the Las Vegas Strip – each reported year-over-year declines in net revenue across quarters in 2025, underscoring a challenging market for room rates, gaming and ancillary spend.
Tom Reeg, CEO of Caesars Entertainment, addressed similar concerns a day earlier during his company’s quarterly earnings discussion. “I don’t discount that there are areas in our business and in Las Vegas that might have gotten over their skis pricing-wise”, Reeg said. He emphasised that despite those pricing conversations, Caesars maintained strong occupancy levels, noting the company’s properties recorded occupancy above 90% in the quarter, and predicted that anecdotes about overpriced items would eventually fade.
Related: ‘Vegas Is Fine’: MGM Predicts Stabilization After Softer Summer
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Operators’ Strategic Responses
Industry leaders and smaller operators have increasingly framed the issue as a community-wide problem that requires coordinated fixes. Downtown figures such as Derek Stevens, CEO and co-owner of Circa and other downtown properties, and Jonathan Jossel, CEO of the Plaza, have publicly warned of the reputational risk created when headline-grabbing prices circulate in national and international media. “We’ve got to fix that, as a community”, Jossel said this summer after recounting a viral story about a visitor paying more than $30 for a simple breakfast.
Casino companies have begun to act. MGM has adjusted prices at several value-oriented properties, including Excalibur, Luxor and New York-New York, and some operators have moved to remove parking and resort fees, launch locals-focused promotions, or create bundled packages aimed at restoring perceived value. The Las Vegas Convention and Visitors Authority coordinated a first-ever citywide promotion in September – the five-day sales push that MGM said produced roughly 300,000 room nights for participating hotels and nearly doubled the typical booking pace during the event.
Analysts say those steps are pragmatic but only part of a longer effort to rebuild trust. Restoring a consistent message about value will require operators to pair price changes with clearer communication on what guests receive for their spend, and to integrate community-wide promotions with sustainable pricing strategies across room rates, food and beverage, and ancillary services.
For now, Las Vegas operators face the twin task of protecting revenue while addressing the public perception that the city has become expensive for everyday visitors. Hornbuckle acknowledged that balancing those priorities is essential: “I think the sale that the community did – and we participated in a meaningful way – demonstrated we understand value, we understand Las Vegas. And we’ll always be that. We’ll always need to be that”.
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