In a previous post I wrote about why I wanted to own a casino — mainly because only an absolute idiot can lose money while owning one (that idiot being Donald Trump). Most of my point can be found in my previous post, but I have more numbers to drop.
I got my MGM/Mirage annual report today. Net Revenues were $7.1 billion dollars with net assets of $22.1 billion dollars ($21,146,238,000) and debts including leases of around $13 billion dollars. That’s a lot of leftover money and if they want to throw some my way, that would be cool.
Revenues are as follows: Table Games ($1.2 billion), Slots ($1.8 billion), Other Gaming ($108 million), Rooms ($2 billion), Food ($1.5 billion), and Entertainment ($1.1 Billion). They gave away $620 million dollars in comps. Yes, you will go to Las Vegas and win. If you believe that, you are Donald Trump. Think of a business where you give away a half-billion dollars and still turn a multi-billion dollar profit. That intrigues and excites me, but we all know the barriers to entry are impossible.
Casino revenue of $3.1 billion was offset by casino operating costs of $1.6 billion. That means they kept around half of the money wagered. That’s your money, bud. That means at their properties and average of $8.2 million dollars per day goes through the casino or $343,000 per hour, or $6,000 per minute. Of which they keep half, so they are making $96 per second 365/24/7. Do you make $96 a second NET? Hell, most people probably don’t make that much in a day.