The MGM Mirage (MGM) reported huge profits of 70% for the third quarter, claiming it was increased gambling and visitation and higher operating margins that made it happen (more on that later).
The profits and the Mirage for the quarter were $156.3 million, far above the $93.2 million they had last year. Gross revenue posted a record $1.9 billion, including casinos, rooms, entertainment and food. All of these categories increased over last year.
Chief Executive Terry Lanni told MarketWatch: " ... a higher volume of play creates a better margin, and we are also incorporating the Mandalay resorts (acquired last year) into our players club for 
further growth."
He also credited acquisitions, systems and "the great managers we have put into the Mandalay properties," as the reason for the great turnaround.
Now I'm not disputing that there has been an increased visitation to the Mirage, that is an obvious fact. Everything rises when that happens ... from gambling and slot machines to baccarat.
The real question is why this has happened. The real reason is the legislative elimination of their competition. They got rid of the online gambling businesses. Now every gambling company that's worth anything should surge ahead in growth for quite a long time.
I personally think it stinks what these companies did, but they got away with it. If you're an investor, this is something to consider as a possibility. Now they are all protected from former online competitors. That means that there has been an elimination of uncertainty for the brick-and-mortar gambling houses. That implies that there is more certainty for investors in this sector.
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