Vegas Unfiltered Local Favorties

OPINION: MGM Resorts Got What It Deserved

SamNovak

Official Verified Account

Editor

OPINION: MGM Resorts Got What It Deserved

Are we supposed to feel bad that the Strip's biggest corporation is crippled? I don't think so...

This article is a work of opinion and doesn't necessarily reflect the views of VEGAS 411 as a whole.

kar·ma (noun) - destiny or fate, following as effect from cause. Used in a sentence: "There's something highly satisfying when karma strikes".

It started on September 10th, with just a few indicators that something was amiss. Within twenty-four hours, September 11th would forever be associated with two disasters...the second being a crippling cyberattack on MGM Resorts International. Nine days deep at the time of this writing, there's still plenty wrong. Estimates put the financial loss in the hundreds of millions of dollars for a corporation with $34 billion in assets as of 2019. Boo freaking hoo. Karma is a bitch, baby. I won't fill this article with statistics and details that you can find everywhere else. What I will say is that MGM Resorts had it coming. Why? The better question is "Why not?". To me, the attack is poetic justice for a company that, in many eyes, has "ruined" Las Vegas and everything it used to be.

Photo via MGM Resorts Facebook page

Last evening I attended a show at MGM Grand Resort. When entering their parking garage, I smiled widely at the malfunctioning, open gates. It was satisfying to realize that nearly every car exiting Vegas MGM properties this week would have another fifteen dollars at minimum in their pocket. That list of resorts includes Luxor, Excalibur, Mandalay Bay, Park MGM, New York NY, Aria, and Bellagio. You see, MGM Resorts began the game-changing act of charging to park at Las Vegas resorts. Like a virus, parking fees spread so far and wide that you can count on one hand the number of Strip resort garages remaining free to motorists. And that's just one way that MGM pioneered the practice of nickel-and-diming its Vegas guests. Let's go back thirteen years to another notorious money grab. It was November of 2010 when MGM made resort fees such a huge pain in the ass, rolling them out to every one of their Las Vegas hotels. The move was initiated by MGM's CEO Jim Murren (remember that name....you'll be hearing it a lot in the next few paragraphs).

Jim Murren via LinkedIn

Here are examples of the ruthless moves committed by this corporation in recent years, all under the guidance of Jim Murren:

MGM Resorts International filed a lawsuit on July 18, 2018, against one thousand survivors and relatives of victims slain in the October 1, 2017, Las Vegas shooting. The shocking move was to avoid liability for the largest mass shooting in modern U.S. history.
In April of 2018, MGM lobbied the Trump administration against giving federal approval for a casino operated by two native tribes in East Windsor, Connecticut. The casino would have provided competition to an MGM casino across the border in Massachusetts.
MGM filed a lawsuit against the federal government in August 2019 in a continued attempt to prevent tribal gaming expansion.
In January 2019, Jim Murren announced a plan to increase profits and reduce operating expenses. Code-named MGM 2020, the initiative produced wave after wave of layoffs and position eliminations.
On March 4, 2019, VitalVegas.com reported that MGM would be replacing bartenders at their service wells with automated cocktail dispensing machines.
In April 2019, 254 managers were let go. Several hundred terminations followed and by May 2019, another 557 employees were shown the door. “It was a bloodbath,” says one terminated employee who asked not to be identified. “I waited six hours to find out I’d been fired. They walked around pointing people out. Everyone was crying. Some of those laid off didn’t even bother cleaning out their desks.” - quote from NEVADA CURRENT dated 4/26/19
The following February, Jim Murren announced that he was stepping down from MGM Resorts, and received a $32 million "exit package" partially in recognition of his massive job-elimination program.
In March 2020, one month after leaving MGM Resorts, Murren was appointed by Nevada's then-Governor Steve Sisolak to oversee the state's COVID-19 Response, Recovery, and Task Force. As part of his exit package, Murren had retained a "consultant" position with MGM. Five months later his former company, which he still had ties with, laid off another 18,000 employees.
“I know this day is going to be difficult for everyone. I also know that changes like this can be stressful and I regret the impacts on the individuals whose roles are being eliminated.” Murren said in an April 2019 statement. As of this month, Murren's net worth is estimated to be $38 million.

We're in the third year of post-pandemic recovery, and Vegas has sprung back rather nicely. The shutdown was a golden opportunity for major players to hit the reset button and start treating their customers and team members with respect again. Instead, they reverted to the old ways and used COVID-19 as an excuse for more gouging and reduction of services. New "recovery fees", reduced or eliminated guestroom housekeeping, fewer perks to loyalty-rewards programs, reduced check-in staff, shorter restaurant hours, and blah blah blah. You've heard it all before. MGM Resorts has single-handedly destroyed the city's reputation for customer service, slicing and dicing a path for its competitors to follow suit.

A few weeks ago, the company committed what to many was the last straw...chopping down decades-old trees in front of the world-famous Bellagio Resort fountains. Why? So it could erect enormous temporary grandstands on that spot. Three-day tickets to these grandstands are on sale for $11,247 per person to view the Formula 1 Grand Prix in November.

"Here’s what the number one tourist attraction in Las Vegas currently looks like. The one that was available free to anyone - monied or not. All of the beautiful shade trees that lined the most iconic block of the strip have been cut down and Bellagio is erecting these massive iron grandstand supports IN the fountain. They will soon be suspending the fountains’ operation. All for a f’ing car race. All that’s wrong with Vegas in one photo."

- a Vegas entertainer

MGM Resorts was once known as MGM/Mirage. The company sold Mirage Resort to Hard Rock International last year. Hard Rock has decided to replace the iconic tourist attraction with a new hotel tower. At the time of this writing, the world-famous Mirage Volcano is in its final months of existence. Thanks to the Formula 1 race, three of the volcano's remaining months will be chopped away.

"The volcano show will not be operating from September 13 - December 8 in preparation for construction related to Formula 1® Las Vegas Grand Prix 2023"

Last month I published an article entitled Now Is The Worst Time In History To Visit Vegas. Four weeks later, things have gotten even worse thanks to the cyber-attack. Thousands of people have been unable to check in, check out, access their rooms, play slot games, pay by credit card, reserve show tickets, or use MGM Resorts' online systems.

MGM employees have expressed concern about being paid on time, with many worried about the safety of personal information such as their social security numbers. Thanks to inadequate staffing during the best of times, employees have been asked to work overtime during the crisis. Some have reported to VEGAS 411 that they've received threats of termination if they discuss working conditions with the press. So, they soldier on in an atmosphere of fear and stress.

MGM Resorts has not updated its official Facebook page since September 14th regarding its operating status. That was five days ago at the time of this writing. They have, however, created a dedicated web page that supposedly reports in real time what systems are currently operating. In the meantime, MGM continues to lose millions per day (estimates vary wildly depending on the source).

We now know that Caesars Entertainment, the other "big" name in Las Vegas, was threatened with a similar cyberattack a few weeks ago. Opting to pay a reported $30 million ransom, Caesars properties like Flamingo, Harrah's, Horseshoe, Cromwell, The Linq, and Caesars Palace appear to be operating normally...for now. While caving into terrorist demands is usually an undesirable option, Caesars' choice was undoubtedly worth the "investment" in hindsight. There's no question that thousands of employees and customers have suffered at the hands of this cyberattack. It's a situation in which no one has benefitted, but now that it's taken place, there's a certain degree of satisfaction in seeing karma do its thing.

Screenshot of Bloomberg.com 9/13/23

Karma doesn't discriminate. No matter who you are or what you've done, you'll eventually get what you deserve. On behalf of the thousands of individuals who've fallen victim to the ruthless practices of MGM Resorts, it's so gratifying to watch the biggest bully on the block finally getting knocked to its knees. And it ain't over yet, baby. The hits will keep coming as long as MGM Resorts International and other hospitality giants remain on the same course. Now is the perfect opportunity for visitors to discover many customer-driven hotels throughout the Vegas Valley. You have dozens of options, from Tuscany Suites and Alexis Park resorts to off-Strip Station and Boyd casinos, Westgate Las Vegas, Silverton Casino Hotel, South Point, Downtown Grand, and other Fremont Street-area winners. Isn't it time to feel appreciated again?