Executives at MGM Resorts International and Caesars Entertainment, the Las Vegas Strip’s two largest casino operators, say their ongoing talks with the Culinary Workers Local 226 and Bartenders Local 165 be wrapped up soon.
Those unions represent most of the companies’ non-gaming employees.
Caesars Entertainment CEO Tom Reeg and MGM Resorts International CEO Bill Hornbuckle expressed optimism that the contract talks will be over before the end of the year during investment calls this week.
They spoke with gaming analysts to discuss second-quarter earnings.
Wynn Resorts is also in contract talks with the two unions. It has a conference call scheduled for next week to discuss its financial results. The company is expected to face similar questions about the two unions.
MGM, Caesars and Wynn operate 19 Strip properties, which have more than 38,000 workers represented by the two unions.
In 2018, five-year contracts between the unions and the resort industry began. Those contracts expired in May 2023.
Reeg said during Caesars' earnings call, “The second quarter of 2023 reflected continued strength in our business. Demand remains strong in both Las Vegas and our regional markets.
“Caesars Digital posted its first quarter of positive adjusted EBITDA since our rebranding to Caesars Sportsbook in the third quarter of 2021. Our capital investments are generating stronger than expected returns based on recent new property openings.”
In the second quarter this year, Caesars filed plans to renovate the Horseshoe Las Vegas Tower and received support in the form of an open letter from rapper Jay-Z for its bid for a casino in New York.
Hornbuckle said in MGM's earning call, “Beyond MGM’s outstanding second quarter performance, we also cemented a long-term agreement with Marriott which will provide us with an expansive customer booking channel. BetMGM reported that it achieved its first positive EBITDA quarter and remains on track to achieve its next milestone of second-half profitability.”
MGM recently announced that the Cosmopolitan of Las Vegas will begin using the MGM Rewards loyalty program from February 2024.
