MGM CEO: ‘Shame on us’ about high prices in Las Vegas
Summary
MGM Resorts CEO Bill Hornbuckle acknowledged on an earnings call that the company — and the wider Las Vegas industry — overstepped on pricing, pointing to examples like expensive bottled water and pricey coffee at lower-end Strip properties. MGM says it has “price corrected” some items, especially at budget-friendly hotels such as Excalibur, Luxor and New York-New-York. The admission comes amid declining visitation to Las Vegas (28.9 million through September, down 7.8% year-over-year) and falling revenues across major operators in 2025.
Key Points
- Bill Hornbuckle publicly apologised, saying “shame on us” for prices that damaged the guest experience.
- MGM has adjusted prices at several lower-end properties and says it has “price corrected.”
- Perception of price-gouging has coincided with weaker tourism: September marked the ninth straight month of year-over-year visitation declines.
- Both MGM and Caesars reported year-over-year decreases in net revenue across quarters in 2025, signalling industry-wide softness.
- Operators and the LVCVA have responded with measures such as a citywide sale, locals offers, waived fees and bundled packages to restore perceived value.
Context and Relevance
The remarks are notable because senior executives rarely admit pricing mistakes so directly. Las Vegas relies on volume and perception of value; continued negative publicity about small but visible charges (water, coffee, bagels) can erode demand faster than cost savings from those items. The industry’s collective moves — promotions, fee rollbacks and targeted discounts — show operators understand the risk to long-term visitation and brand reputation.
Why should I read this?
Quick and simple: if you care about Vegas tourism, hospitality strategy or corporate reputation, this is a rare public mea culpa from a major operator. It signals actual changes to pricing and marketing tactics that could affect visitor costs and industry recovery — and it explains why you might be seeing more promotions and locals deals soon.
