MGM Resorts International Announces $2B Share Repurchase Program

MGM Resorts International Announces $2B Share Repurchase Program

MGM Resorts International, the entertainment and hospitality giant, has launched a new $2 billion share repurchase program. According to the Board of Directors and the Chief Financial Officer, Jonathan Halkyard, the company’s commitment to capital allocation strategy, focused on returning cash to shareholders, will continue to be implemented.

Meanwhile, BetMGM, the sports betting unit of MGM, also announced its new venture with Entain to offer Unified Responsible Gaming. The new venture will forge a commitment to responsible gaming since both are committed to their respective field initiatives.

Repurchase planned in 2020

The hospitality major had announced the repurchase plan in February 2020 for $3 billion. Thus far, it has completed 60 million shares purchase valued at $2.6 billion. By March 2022, it expects to have a $525.6 million balance as part of the repurchase plan.

However, the final consideration is that MGM will close all 2020 repurchase plans before commencing its new $2 billion programs.

This strategy proposed by the company is to repurchase shares from time to time as part of open markets or in private agreements.

Rule 10b5-1plan

The plan also considers the repurchase of common stock as per Rule 10b5-1 plan for permission to repurchase common stock when insider trading laws limit the company.

Moreover, the primary consideration for the gambling giant is understanding the timing, nature of stock repurchases, and volume, which are at the discretion of the management. The fear is that they may be suspended or discontinued at any point in time.

The organization believes that returning the cash is a “very productive use of our capital.” In addition, it expects that the repurchase program will bring more value to their shares at the current levels.

National Council on Problem Gambling

BetMGM, the betting arm of the MGM hospitality unit, offers improved decision-making since it supports in-person and online gaming customers. This is part of the more extensive outreach program that MGM Resorts and BetMGM are implementing as part of the National Council on Problem Gambling platform. This initiative is focused on creating awareness about gambling awareness in March.

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.