Management’s Discussion and Analysis of Financial Condition and Results of Operations 23
• The ongoing capital investments in upscale amenities at our resorts, which we
believe is allowing us to market more effectively to visitors, capture a greater share
of these visitors’increased travel budgets, and generate premium pricing for our
resorts’ rooms and other amenities.
As a result of the above trends, our net revenues increased 10% in 2004, while
increasing only 3% in 2003. Net revenues at MGM Grand Las Vegas increased
14% in 2004, due to the addition of several new restaurants, bars and other 
amenities, and in spite of fewer rooms in service due to room remodel activity. 
Net revenues at New York-New York increased 26% as the resort continues to 
benefit from Zumanity and Nine Fine Irishmen, both of which opened in summer
2003. Net revenues at The Mirage decreased 2% as the resort was without the
Siegfried & Roy show and the buffet was closed for a portion of the year while
Cravings was constructed.
Our operating income in 2004 increased 36%, due primarily to the strong revenue
trends and a full year of Borgata’s results. The increase in income from unconsoli-
dated affiliates is responsible for approximately one-third of the increase in 
operating income, while improvements at our operating resorts, particularly
Bellagio, MGM Grand Las Vegas and New York-New York, make up the rest of the
increase. Operating income at MGM Grand Detroit was essentially flat year-over-
year, despite an increase in the gaming tax rate fr om 18% to 24% effective
September 2004. Several other factors largely offset: Higher corporate expense due
to increased development costs; lower bad debt expense due to improved collec-
tions; lower preopening expenses due to Borgata preopening expenses in 2003; and
higher property transactions, net due to a $37 million gain on sale of land in 2003.
In 2003, our operating income decreased by 6%. While revenues grew especially in
the second half of 2003, expense growth, particularly in payroll, outpaced revenues.
Operating Results – Detailed Revenue Information
The following table presents details of our net revenues:
(In thousands)
Year Ended December 31 2004 % Change 2003 % Change 2002
Casino revenues, net:
Table games  . . . . . . . . . . $ 943,343 9% $ 866,096 (3%) $ 893,836
Slots  . . . . . . . . . . . . . . . . 1,218,589 9% 1,115,029 5% 1,064,491
Other . . . . . . . . . . . . . . . . 62,033 10% 56,389 3% 54,513
Casino revenues, net  . . 2,223,965 9% 2,037,514 1% 2,012,840
Non-casino revenue:
Rooms  . . . . . . . . . . . . . . 911,259 9% 833,272 5% 796,861
Food and beverage  . . . . . 841,147 11% 757,278 7% 706,153
Entertainment, retail 
and other  . . . . . . . . . . 696,117 7% 647,702 2% 637,625
Non-casino revenues . . . . 2,448,523 9% 2,238,252 5% 2,140,639
4,672,488 9% 4,275,766 3% 4,153,479
Less: Promotional allowances . (434,384) 5% (413,023) 4% (396,551)
$ 4,238,104 10% $ 3,862,743 3% $ 3,756,928
Table games revenues increased as a result of the improvements in the U.S. econo-
my and the general economy worldwide, as well as increased attendance at targeted
marketing events, including the New Years period. T otal table games volume for the
year was up 9%, with particular strength in baccarat volume, up 18%. These are the
most significant increases in table games volumes since 2000. Table games revenues
decreased in 2003, as a slightly lower hold percentage and the impact of the Iraq
war and SARS outbreak in early 2003 were not fully offset by strong volume levels
over the latter half of 2003. Table games win percentages were within our normal
range for all periods presented.