How could high per-household tort costs in certain states affect MGM Resorts International?
High tort costs in states like Georgia and Alabama may increase MGM Resorts International's operational expenses The study on tort costs in America found that the U.S. tort system reached over $655.6 billion in 2025, with costs growing at an average annual rate of 7.8 percent between 2019 and 2025. States such as Delaware, Georgia, and Alabama have high per-household tort costs, ranging from $7,814 in Delaware to $6,247 in Georgia. As a major operator in these jurisdictions, MGM Resorts International could face increased operational expenses and liability due to the rising cost of civil justice in these states, although state policy choices, like those in Florida, offer a potential path to easing this burden.
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How it reaches MGM Resorts International
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The fourth edition of Tort Costs in America found that costs and compensation paid into the U.S. tort system reached over $655.6 billion in 2025, equating to 2.12 percent of U.S. GDP. The study identified states with high per-household tort costs, including Delaware ($7,814) and Georgia ($6,247). The report noted that Florida improved its ranking of state tort costs per household following its 2023 civil justice reforms.
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The fourth edition of Tort Costs in America found that tort costs continue to grow faster than inflation, at an average annual rate of 7.8 percent between 2019 and 2025. States like Delaware, Georgia, and Alabama have high per-household tort costs, which increases the financial burden on businesses operating within those jurisdictions. As a large multinational operator, MGM Resorts International would be subject to these rising costs, potentially leading to higher insurance premiums and legal expenses.
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The facts so far
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- Tort costs reached over $655.6 billion in 2025, equating to 2.12 percent of U.S. GDP.uschamber.com
- Tort costs grew at an average annual rate of 7.8 percent between 2019 and 2025.uschamber.com
- Delaware has a per-household tort cost of $7,814.uschamber.com
- Georgia has a per-household tort cost of $6,247.uschamber.com
- Alabama has a per-household tort cost of $7,136.uschamber.com
Why it matters
For MGM Resorts International, operating in states with high tort costs means that the cost of doing business is structurally higher than in states with more favorable legal climates. This increased liability and operational expense can affect corporate budgets, investment decisions, and overall profitability, especially as national tort costs continue to rise faster than inflation.
The study highlights that individual state laws and policies play a crucial role in determining these costs. Florida, for example, showed a decline in tort costs as a share of its economy following its 2023 civil justice reforms, demonstrating that policy choices can ease the burden on businesses and residents alike.
What we don't know yet
- How will MGM Resorts International adjust its operational strategies or insurance coverage in states with high tort costs?
- What specific policy changes could states implement to reduce the financial burden on large corporations?
Is this still moving?
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Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.