How Las Vegas casinos are recovering after extensive losses from COVID-19

MGM Resorts International President of Commercial and Growth Atif Rafiq joins the On the Move panel to discuss how Las Vegas casinos are recovering from COVID-19.

Video Transcript

JULIE HYMAN: Well, the hotel and casino industry has been suffering, like many industries that rely on travel, so they're getting creative to try and figure out how to get people back traveling. Atif Rafiq is joining us now. He's MGM Resorts International President of Commercial and Growth. Atif, thank you for joining us. So we know that people have not been traveling as much, although some traffic has returned to places like Las Vegas.

Conventions are not happening, which had been a big source of traffic to Vegas in particular. So you guys are saying, well, if you're sick of working at home, come and work in an MGM resort in a place like Las Vegas. Are you finding any takers right now? Is that-- is that a hard sell, or are people interested in this?

ATIF RAFIQ: Well, it's early days, but the buzz is tremendous, and we're looking forward to welcoming our first guests this week actually. Our core kind of idea behind this is that it's clear America is not going back to the office in 2020. And in some cases, companies have said well, into 2021. So we asked ourselves, how can we provide a change of scenery that would make it easy, convenient, and also very possible to stay productive while taking advantage of resort experiences like restaurants, pools, and even a massage? So that's what this program Viva Las Office is-- is all about.

ADAM SHAPIRO: You know, I-- I'm one of those rare breed who has been to Vegas, enjoyed the resort experience. Wasn't a big gamer. I won't say gambler. I'll say gamer. But I wanted to ask you, if there is a push to finally legalize online gaming, would that help? Or is the resort portion of the business that much larger than the gaming side of it?

ATIF RAFIQ: Well, the online part will be very complementary to the resort experience. This is what we call omnichannel, where basically there's some things the brick and mortar does in a very unique way, and that is, you know, a place for leisure or for doing business, a place with all the amenities, from fine dining to entertainment to pools, et cetera, et cetera.

And so people want to choose to do something on their phones in terms of online gaming or betting, you know, which is a growing behavior and increasingly legalized in different states, and then get, as a reward or a perk for that behavior and that loyalty, the benefits of a resort experience. We think those two things can come together in a very nice way.

JARED BLIKRE: Hi, Jared Blikre here. I wanted to ask you about Barry Diller and IAC's $1 billion investment in MGM. He's highlighting online gaming-- I'll use Adam's term here-- as the potential catalyst. And he says maybe he will work with the people at MGM, with the executives there, on their long-term strategy. Is he in the fold right now at all?

ATIF RAFIQ: Well, it-- it's very early days. I mean, we're happy to welcome a new shareholder, obviously, with that pedigree and experience and tap into it. It is very early days, so, you know, we're in dialogue on comparing notes and what we can learn and-- and exchange with each other. I mean, our core strategy, of course, will remain the same. We've been very bullish on the potential for sports betting.

That's why we have a very significant investment in a joint venture. It's called Roar Digital. They operate a product called BetMGM. It's increasingly getting traction, and we're very hopeful about the prospects of-- of that line of business and how MGM resorts, other assets, some of the things I talked about in terms of resorts you can visit for food, hospitality, entertainment, can actually go together very well with that digital experience.

MELODY HAHM: Vegas has done a very good job at pivoting to the day clubs, right, and making sure there are other offerings for people who are not gamers or gamblers. How are you seeing that sort of interest during this time? Do you feel like there is still a lot of caution? Or are people sort of acting with reckless abandon and saying, hey, we're back to partying by the pool?

ATIF RAFIQ: Well, I mean, safety is our very top priority. You know, for a little bit of context, we were closed for about 2 and 1/2 months. And during this period of time, we brought intense focus to modifying the resort experience around safety, and that means everything from PPE to screening of employees to distancing spaces like tables and restaurants, and then contactless experience powered by technology.

So safety is the basis of consumer trust. And since we feel like we-- we did a pretty good job of that, you know, we've seen consumers return for the options that are available, which are generally in the summer period-- pools, cabanas, fine dining, and of course, gaming, if that's what you're into. But we're a very diversified company. We have just as many guests here who do little to no gaming as those who are really into all the gaming options.

JULIE HYMAN: See, Adam, you are not alone. All right, Atif Rafiq, MGM Resorts International President of Commercial and Growth, thank you so much for joining us. We appreciate it.

ATIF RAFIQ: You're welcome. Great to join you.