23 Management’s Discussion and Analysis of Financial Condition and Results of Operations Operating Results – Detailed Revenue Information The following table presents details of our net revenues: (In thousands) Y ear 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 • 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 from 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. 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. Total 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. 