Gaming Analyst Predicts MGM to Benefit from Las Vegas Baseball Stadium

Earlier this year, Oakland Athletics, the famous American professional baseball team based in Oakland, California, unveiled an ambitious plan to bring Major League Baseball (MLB) action to Las Vegas via a new stadium. The stadium, which is expected to offer 30,000 seats and has a price tag of some $1.5 billion is planned to be located on the Las Vegas Strip, utilizing some 35 acres at the Tropicana’s site.

In collaboration with Bally’s Corporation, the A’s seek to bring live baseball action to the Strip but the project also needs some $400 million in public funds from Nevada. While talks about the future project continue, a recent report, citing an industry analyst, suggests that the new baseball stadium can bring significant benefits for operators that aren’t investors in the project.

Currently, the gaming and entertainment leader, MGM Resorts, has approximately 35,000 hotel rooms on the Las Vegas Strip. Keeping in mind this number, Steven Wieczynski, Stifel Financial gaming analyst, who was recently interviewed by The Nevada Independent, suggests that MGM is likely to benefit significantly from the new baseball stadium.

According to him, the expansion of sports offerings for the region will have a positive impact on the company, especially considering its strong presence within the gambling capital of the world, Las Vegas. Besides hotel accommodation, Wieczynski suggested that MGM Resorts’ parking garage, which is near where the new stadium is planned, is likely to see significant revenues on baseball game days.

“The MGM Grand has a large-scale parking garage that is currently under-utilized which could generate significant revenues on Major League Baseball game days given attendance is expected to be comprised of mostly local residents.“

Steven Wieczynski, gaming analyst for Stifel Financial

Close Proximity to the Baseball Stadium to Bring Benefits

The suggestion made by Wieczynski doesn’t come as a surprise, considering that MGM Resorts has a strong presence on the Strip. In fact, five of its properties, Luxor, Excalibur, Mandalay Bay, New York-New York, as well as MGM Grand Las Vegas are within close proximity of the future baseball stadium.

Those resorts and their hotel rooms that surpass 13,000 are likely to create the perfect conditions for baseball fans that want to visit Las Vegas. Additionally, two of MGM’s other properties, Park MGM and Aria are also nearby, offering an additional 7,000 hotel rooms.

But it’s not only MGM that will benefit from the planned project. The baseball stadium is likely to have an overall positive impact on tourism and help attract more visitors to Las Vegas. According to Jeremy Aguero, the founder of Applied Analysis, the new stadium is likely to attract some 2.6 million visitors on an annual basis. He estimated that some 30% or just above 760,000 people are likely to visit out of town, reaffirming the positive impact the project can have.