MGM RESORTS INTERNATIONAL ANNOUNCES NEW LONG TERM BRANDING AGREEMENT WITH MGM CHINA

Rhea-AI Summary

MGM (NYSE: MGM) and MGM China agreed a Long Term Branding Agreement effective Jan 1, 2026 that preserves MGM China's right to use the MGM name through the current concession term ending 2032, with an automatic extension if a further concession is granted until the earlier of the new concession expiry or Dec 31, 2045. The deal doubles the monthly license rate from 1.75% to 3.5% of MGM China's adjusted consolidated net monthly revenues (IFRS) and sets an annual cap tied to business volumes as required by the Hong Kong Stock Exchange. Approximately 66.6% of the license fee will be payable to MGM Resorts. Market share rose from ~9% pre-pandemic to ~16% YTD Sep 30, 2025.

Positive

• Brand term secured through 2032 with extension potential to 2045
• License rate doubled from 1.75% to 3.5% of adjusted revenues
• MGM Resorts to receive ~66.6% of the license fee
• MGM China market share ~16% YTD Sep 30, 2025 (from ~9% pre-pandemic)

Negative

• License fees are subject to an annual cap tied to business volumes per HKEX rules
• Long-term branding term may limit near-term renegotiation flexibility for both parties

Key Figures

Concession term end 2032 Branding Agreement runs through current MGM China concession

Maximum extension date December 31, 2045 Automatic extension if further concession granted

Pre-pandemic market share approximately 9% MGM China Macau market share before pandemic

2025 YTD market share approximately 16% MGM China market share as of September 30, 2025

Old license fee rate 1.75% Previous monthly fee on adjusted consolidated net monthly revenues

New license fee rate 3.5% New monthly fee on MGM China adjusted consolidated net monthly revenues

MGM Resorts share of fee approximately 66.6% Portion of the branding license fee payable to MGM Resorts

Market Reality Check

$35.96 Last Close

Volume Volume 3,034,110 is below the 20-day average of 4,112,619, suggesting no pre-news accumulation spike. normal

Technical Shares at $37.55 are trading above the 200-day MA of $33.85 and about 9% below the 52-week high of $41.32.

Peers on Argus

MGM gained 0.67% with peers mostly positive (e.g., CZR up 2.63%, BYD up 0.9%, RRR up 0.84%), while MTN fell 3.63%, pointing to mixed but generally constructive sector tone rather than a tight sector-wide move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 16	Responsible gaming update	Neutral	-1.4%	Milestone of over 2,000 GameSense Advisors across more than 20 properties.
Dec 15	Marketing campaign	Neutral	-0.1%	New BetMGM responsible gambling ad featuring Connor McDavid and tools usage data.
Dec 11	Venue partnership	Neutral	+0.7%	Zoox multi-year partnership to add autonomous ride-hailing at T-Mobile Arena.
Dec 04	New dining concept	Neutral	-0.4%	Opening of Gymkhana fine-dining restaurant at ARIA on the Las Vegas Strip.
Dec 01	Hotel rebranding	Neutral	+0.4%	NoMad Las Vegas rebranding to The Reserve at Park MGM from Dec. 17, 2025.

Pattern Detected

Recent MGM news has typically led to modest single-day moves in both directions, with no consistent pattern of strong rallies or selloffs following operational or branding updates.

Recent Company History

Over the past month, MGM issued several brand and partnership updates, including a NoMad Las Vegas rebrand effective Dec. 17, 2025, a new fine-dining concept at ARIA on Dec. 4, 2025, and a Zoox ride-hailing partnership for T-Mobile Arena. Responsible gaming initiatives, such as surpassing 2,000 GameSense Advisors, have also been highlighted. Price reactions to these announcements stayed modest, suggesting investors viewed them as incremental rather than thesis-changing—context for today’s long-term branding agreement with MGM China.

Market Pulse Summary

This announcement secures MGM China’s use of the MGM brand through 2032, with automatic extension potentially to 2045, and increases the branding fee from 1.75% to 3.5% of adjusted consolidated net monthly revenues, of which MGM Resorts receives about 66.6%. It formalizes a key intangible asset after the gaming concession itself. Investors may watch future disclosures on fee caps, Macau market share (now about 16%), and regulatory conditions affecting concessions.

Key Terms

concession regulatory

"through the 2032 Concession term with an automatic extension if a further Concession"

A concession is a small discount or fee taken by an intermediary when securities are sold, such as the portion of the offering price that a dealer or broker keeps for handling the sale. It matters to investors because concessions change the effective purchase price or the net proceeds to the issuer — like a service tip that reduces what the seller gets and affects returns and transaction costs.

adjusted consolidated net monthly revenues financial

"3.5% of MGM China's adjusted consolidated net monthly revenues (determined in accordance with IFRS)."

Combined monthly sales collected by a company and all its subsidiaries after subtracting returns, refunds and other direct deductions, then adjusted to remove one‑time items or accounting quirks so the figure shows the company’s recurring, normal revenue for that month. Investors use it like a cleaned-up monthly paycheck — it helps reveal the underlying trend in sales and cash flow by removing noise that can hide whether the business is sustainably growing or shrinking.

ifrs financial

"net monthly revenues (determined in accordance with IFRS)."

International Financial Reporting Standards (IFRS) are a set of common accounting rules used by many companies worldwide to prepare financial statements, so numbers like revenue, profit and assets are measured in the same way across borders. For investors, IFRS matters because it makes it easier to compare the financial health and performance of different companies—like using the same ruler to measure different objects—reducing surprises and helping informed investment decisions.

forward-looking statements regulatory

"Statements in this release that are not historical facts are forward-looking statements, within the meaning"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. Not financial advice.

MGM China extends the right to use "MGM" name through the 2032 Concession term with an automatic extension if a further Concession is granted or awarded

LAS VEGAS, Dec. 23, 2025 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) ("MGM Resorts" or the "Company") has entered into a new Long Term Branding Agreement with MGM China Holdings Limited ("MGM China"), effective January 1, 2026 ("Branding Agreement").

The Branding Agreement provides for a term through the end of the current concession in 2032. If a further concession is granted or awarded, the term shall be automatically extended until the earlier of the expiration of a new concession or December 31, 2045. This secures an important right for MGM China as the MGM brand has served it well, which is reflected in the significant gains in market share and increased profitability since the end of the pandemic. Market share has nearly doubled from a pre-pandemic level of approximately 9% to a year-to-date September 30, 2025 share of approximately 16%. Further, the new agreement eliminates the need for the parties to negotiate a new agreement every three years, which protects MGM China's shareholders by securing its most important intangible asset after the concession itself and provides MGM Resorts with fair compensation for the use of its industry leading brand.

The new monthly license fee has increased from 1.75% to 3.5% of MGM China's adjusted consolidated net monthly revenues (determined in accordance with IFRS). The fees will be subject to an annual cap determined by certain variables, as required by the Hong Kong Stock Exchange, the most significant being business volumes of MGM China. As part of this agreement, MGM Resorts will receive approximately 66.6% of the license fee.

About MGM Resorts International 
MGM Resorts International (NYSE: MGM) is an S&P 500® global gaming and entertainment company with national and international locations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. MGM Resorts creates immersive, iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 31 unique hotel and gaming destinations globally, including some of the most recognizable resort brands in the industry. The Company's 50/50 venture, BetMGM, LLC, offers sports betting and online gaming in North America through market-leading brands, including BetMGM and partypoker, and the Company's subsidiary, LV Lion Holding Limited, offers sports betting and online gaming through market-leading brands in several jurisdictions throughout Europe and Brazil. The Company is currently pursuing targeted expansion in Asia through an integrated resort development in Japan. Through its Focused on What Matters philosophy, MGM Resorts commits to creating a more sustainable future, while striving to make a bigger difference in the lives of its employees, guests, and in the communities where it operates. The global employees of MGM Resorts are proud of their company for being recognized as one of FORTUNE® Magazine's World's Most Admired Companies®. For more information, please visit us at www.mgmresorts.com. Please also connect with us @MGMResortsIntl on X as well as Facebook and Instagram.

Forward Looking Statements
Statements in this release that are not historical facts are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, and involve risks and/or uncertainties, including those described in the Company's public filings with the Securities and Exchange Commission. Forward-looking statements can be identified by the use of forward-looking terminology such as "believes," "expects," "could," "may," "will," "should," "seeks," "likely," "intends," "plans," "pro forma," "projects," "estimates" or "anticipates" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. The Company has based forward-looking statements on management's current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, the Company's expectations regarding the benefits of the new Branding Agreement. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise, and the Company may not be able to realize them. The Company does not guarantee that the transaction or other events described herein will happen as described (or that they will happen at all). These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include risks related to the Company's ability to complete the transaction on the terms described herein or all, the satisfaction of the closing conditions to which the completion of the transaction is subject, including, but not limited to, the receipt of regulatory approvals, which could delay or prevent the completion of the transaction, the effects of economic conditions and market conditions in the markets in which the Company operates and competition with other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, risks relating to international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions and additional risks and uncertainties described in the Company's Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports). In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.

MGM RESORTS CONTACTS

Investment Community:
SARAH ROGERS, Senior Vice President of Corporate Finance and Treasurer
srogers@mgmresorts.com

HOWARD WANG, Vice President of Investor Relations
hwang@mgmresorts.com

News Media:
BRIAN AHERN, Executive Director of Communications
media@mgmresorts.com

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SOURCE MGM Resorts International

FAQ

What does the MGM (NYSE: MGM) branding agreement with MGM China effective Jan 1, 2026 cover?

It grants MGM China the right to use the MGM name through the 2032 concession, with an automatic extension to the earlier of a new concession expiry or Dec 31, 2045.

How much did the monthly license fee change under the MGM and MGM China agreement?

The monthly license fee increased from 1.75% to 3.5% of MGM China's adjusted consolidated net monthly revenues (IFRS).

What portion of the MGM China license fee goes to MGM Resorts (NYSE: MGM)?

MGM Resorts will receive approximately 66.6% of the license fee under the new agreement.

Will the MGM China license fees face limits under the new agreement?

Yes, fees are subject to an annual cap determined by variables including business volumes, as required by the Hong Kong Stock Exchange.

How did MGM China's market share change before and after the pandemic?

MGM China's market share rose from about 9% pre-pandemic to approximately 16% year-to-date Sept 30, 2025.