Lecture Notes: Conversation with Melanie Johnson, President, and CEO of MGM National Harbor

Introduction

• Melanie Johnson, President, and CEO of MGM National Harbor.
• Discusses challenges faced during the pandemic and the transition to post-pandemic normalcy.

Pandemic Impact and Recovery

• Pandemic challenged everyone globally, including the gaming industry.
• Extra precautionary measures for guest and employee safety.
• Transition challenges: reopening food and beverage venues, increasing gaming floor occupancy, and bringing back entertainment.
• Workforce challenges: reluctance to return due to personal safety concerns or career changes.
• Ensured proper training and safety for the workforce.

Career Milestone

• Sent to Borgata in May 2020, during the pandemic.
• Significant challenge due to unfamiliarity with Borgata and Atlantic City.
• Primary challenges: understanding employees, property, and community.
• Enjoyed the experience and considers it a flagship property of Atlantic City.
• Returned to MGM National Harbor, considering it home and a good personal and career decision.

Recent Developments at MGM National Harbor

• Expanded gaming floor by 5,000 sq. ft. and added 170 slot machines.
• Added 3,500 sq. ft. to outdoor smoking gaming patio with 74 slot machines.
• Upcoming food and beverage options:
  • Bread and Butter: a three-meal concept (breakfast, lunch, dinner).
  • Diablos Cantina: Mexican Cuisine.
  • Noodle Bar.

Entertainment and Revenue

• Hosting headliners like Bruno Mars, Jill Scott, Alicia Keys, Smokey Robinson.
• Focus on providing non-gaming entertainment options.
• Regional property: Majority of revenue (80+%) from slot, table, and poker games.
• Ancillary revenue from food, beverage, theater, and conventions.
• 2022 achievement: Highest gross gaming revenue outside of tribal and Las Vegas Strip properties.

Maryland Gaming Market

• MGM National Harbor is the top gaming revenue producer in Maryland.
• Competitors in the market: six gaming operators.
• Revenue primarily derived from District of Columbia, Maryland, and Northern Virginia.

Sports Betting

• Partnership with BetMGM: Opened a sportsbook and lounge.
• Provides additional gaming floor activity.
• Offering online sports betting but no online casino gaming.

Market Trends and Future Growth

• Comparing current revenue to 2019 levels: Market recovered faster than expected.
• Revenue growth plateau expected, not seen as a decline.
• Growth Strategy: Cross-marketing efforts within MGM Resorts International to drive incremental revenue.

Future Initiatives

• Leveling up with recent multi-million dollar property expansions.
• Investing in employee education programs, community improvement, and minority businesses.
• Commitment to volunteerism and charitable contributions to improve the community.

Conclusion

• Expressed gratitude and optimism for the future of MGM National Harbor.
• Emphasis on continuous improvement and community involvement.