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The Street
The Street
Daniel Kline

MGM Resorts' Las Vegas choice risks Bud Light-style backlash

You can blame Kid Rock and Ron DeSantis, but at some point, every choice a business makes has become political.

Target saw that earlier this year when it faced a huge backlash simply for selling "Pride" merchandise. The chain met with boycotts and had to pull the merchandise from its shelves in order to protect the safety of its workers. 

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That led to Target (TGT) -) CEO Brian Cornell trying to both commit to selling Pride merchandise in the future while also hedging his comments during his chain's second-quarter earnings call.

"Specific to pride and heritage months, we're focused on building assortments that are celebratory and joyous with wide-ranging relevance, being mindful of timing, placement, and presentation," he said, "...Our goal is to ensure we continue to celebrate moments that are special to our guests, while acknowledging that, every day, for millions of people, they want Target to serve as a refuge in their daily lives."

Basically, Target wants to keep supporting its associates and selling a diverse array of products, but it's also wary of doing anything seen as political. That's not a bold stance, but it's a sensible one in a world where Walt Disney faced a "woke" backlash because it shows gay and trans people in its movies and shows. Anheuser-Busch (BUD) -) saw sales drop by 30% after a minor online-only one with transgender social media influencer Dylan Mulvaney.

Supporting LGBTQ+ shouldn't be seen as a political gesture, but politicians like Florida Gov. Ron DeSantis and entertainers like Kid Rock have created that environment. It's not universal — Walmart sells its own Pride merchandise without any sort of backlash — but any business that makes a public stand supporting the LGBTQ+ community runs the risk of boycotts and backlash.

That makes MGM Resorts International's (MGM) -) choice to remain a presenting sponsor of the Oct. 6 Las Vegas Pride Parade a political decision, even if the company is simply trying to support part of its workforce and a segment of its customer base.

The Arena Media Brands, LLC and respective content providers to this website may receive compensation for some links to products and services on this website.

MGM owns a number of properties on the Las Vegas Strip.

Image source: Shutterstock

MGM continues to support Las Vegas' Gay Pride Parade  

Disney got into trouble with DeSantis and his right-wing supporters because its employees forced former CEO Bob Chapek to speak out against a piece of the governor's legislative agenda. The Mouse House has always supported the LGBTQ+ community, hosting Pride events, and being openly welcoming and supportive of the community.

That long-standing support did not protect the company when DeSantis opted to paint it as woke for its inclusive stance. Bud Light did not have the same history as Walt Disney in welcoming the LGBTQ+ community, but all the beer brand did was a minor social media promotion aimed at Mulvaney's followers.

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What happened to both companies — Bud Light lost nearly 30% of its sales while Disney has seen a smaller, but meaningful impact — shows how vulnerable companies are who make choices that some right-wing audiences will see as woke.

That's the risk MGM is taking by signing on as a presenting sponsor of the Las Vegas Pride Parade and Festival for the 16th consecutive year. 

MGM makes a statement

MGM will have a float in the parade and has openly encouraged employees to take part in the event, inviting them to march alongside the company's entry. 

“We are proud to reaffirm our support for the LGBTQIA+ community and celebrate love in all its forms,” Jyoti Chopra, chief people, inclusion, and sustainability officer at MGM Resorts, said in a statement to Casino.org. “Our participation is an extension of our ongoing efforts to foster a more inclusive and equitable world.”

The parade's organizers understand that the event comes with risks and shared its safety plan on its website.

Live U=U is a nonprofit that helps members of the LGBTQIA+ community get tested for HIV and other sexually transmitted diseases and secure free or low-cost HIV care.

Las Vegas Pride and The City of Las Vegas, in partnership with LVMPD, private security, and emergency responders, plan the annual Las Vegas Pride Parade with the health and safety of every individual in the Downtown area at the top of mind. All details are vetted to provide the best possible prevention of threat along with a fun and enjoyable experience for all," the organizer posted.

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Presenting sponsors must contribute at least $35,000 to Las Vegas Pride events annually, MGM will be joined as a presenting sponsor of this year's parade by Live U=U, a nonprofit that helps members of the LGBTQIA+ community get tested for HIV and other sexually transmitted diseases and secure free or low-cost HIV care.

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