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The top boss of MGM resorts has admitted Las Vegas has become a rip-off and even declared 'shame on us' as he derided his own hotels' extortionate prices that have driven tourists way. MGM President and CEO Bill Hornbuckle revealed during an earnings call Wednesday that his resorts have 'price-corrected' after being rocked by a summer of public scandal. The company was met with heavy criticism after a guest at its four-star ARIA hotel revealed they were charged $26 for a single bottle of water. A Daily Mail reporter also revealed the company's flagship Bellagio Hotel was charging guests an extra $25 just to eat room service off plates. MGM's parking fees, restaurant and cafe menu prices, and the hefty resort fees guest are charged on top of their nightly room rate, have also come under fire. 'Shame on us,' Hornbuckle told the investor meeting, according to a transcript of the call reviewed by the Daily Mail. Highlighting the 'infamous bottle of water' and how a Starbucks coffee at three-star Excalibur costs $12, the CEO admitted the firm had not been considerate to the needs of its clientele. 'We should have been more sensitive to the overall experience at a place like Excalibur to those customers,' he said. 'You can't have a $29 room and a $12 coffee.' He added that MGM has made changes to its prices and believes the company has demonstrated that 'we understand value, we understand Las Vegas, and we'll always be that.' Tourism across Las Vegas has been on a decline for most of the year, as guests complain of getting fleeced left and right. Earlier this week, rival hotel group Caesars revealed it had 90,000 rooms sit empty through the summer season in Vegas as tourists stayed away. MGM conducted a thorough review of what prices customers are willing to pay and made adjustments. Ninety percent of then are already in effect, it is claimed. MGM guests will still pay resort fees, parking and other fee-based charges, but Hornbuckle said the prices have been changed. He did not offer any specifics. Las Vegas has seen a 7.8 percent dip in the number of tourists between January and August of this year when compared to the same period last year. MGM was not immune to the decline, with the company recording a drop of earnings across its properties over the past year. The company's Sin City properties earned $731 million in September 2024, but only $601 million this year. Hornbuckle admitted on the earnings call that the 'summer was rough' for MGM, but claimed it 'sequentially got better.' 'I will say the same about October. Knock on wood, we may even beat October of last year,' he predicted. MGM is not the only Las Vegas company accused of price gouging. Visitors have complained of spending $74 for two drinks at the Las Vegas Sphere, while others alleged one glass of a restaurant's house wine set them back $30. Sin City's rising prices have led to a parallel rise in the average income of its visitors. Last year, 64 percent of Las Vegas tourists had an income of at least $100,000, up significantly from 48 percent in 2023 and a dramatic spike from 28 percent in 2019, according to a report from the Las Vegas Convention and Visitors Authority. Meanwhile, Nevada and Las Vegas locals are struggling under the economic impact of slipping tourism. Some have even had to sell plasma to make ends meet while spending months looking for work in a city that lost 4,300 jobs month-over-month in August. In August, Nevada also had the fourth worst unemployment rate in the country among metropolitan areas with less than one million people, at 5.6 percent. The state lost 6,000 private sector jobs between July and August, primarily in the construction and food and beverage industries, which are two of the state's biggest economic engines after gaming. Between the economic squeeze locals are facing and Las Vegas's ever-increasing sticker shock, it is no wonder the city's residents are avoiding the Strip.
