The resort was temporarily closed because of the fire. Much of the damage occurred in the casino, which was charred by the fire. The hotel hallways and stairwells were stained by
soot and smoke. Shortly after the fire, some people looted jewelry and blackened money from the resort. State gaming revenues were hurt by the MGM's closure, as the resort was one of the largest tax contributors to the local gaming industry. The county lost an estimated $1.7 million ($5.75 million in 2023) from the closure, and it was estimated that MGM Grand Hotels could face a $1 billion loss because of the fire. After the fire, the MGM Grand was rebuilt over the next eight months for $50 million. It reopened in July 1981, with numerous fire safety features now in place, including the addition of fire sprinklers and an automatic
fire alarm system throughout the property. A two-unit computer – one of them a backup – was provided by
Johnson Controls to monitor hundreds of locations throughout the MGM, helping to prevent another fire. A similar computer had also been installed at another
MGM Grand hotel in
Reno, Nevada. The Las Vegas MGM now had more than 30,000 sprinklers, including four in most hotel rooms. The hotel also had 8,000 speakers, including one in each room, allowing for fire safety instructions to be provided to guests in the event of a fire. The air-conditioning system was heavily modified to prevent smoke from entering hotel rooms, and large exhaust fans were installed, capable of clearing the hotel of fumes in 10 minutes. Plastic pipes and wires that contributed to the fire were removed. A five-minute fire safety program, hosted by
Gene Kelly in both English and Spanish, was played on televisions in hotel rooms. A minor incident occurred two weeks after the reopening, and the new safety features worked as planned. Insulation material had begun to
smolder because of a
welder's torch, and this set off automatic alarms. The original hotel tower, where most of the deaths occurred, continues to operate. A second tower opened in 1981. The MGM Grand was sold in 1986 to
Bally Manufacturing, which changed the name to
Bally's Las Vegas. A
new MGM Grand was opened in Las Vegas in 1993, at the northeast corner of
Las Vegas Boulevard and Tropicana Avenue, south of the original MGM. Bally's was again renamed in 2022, as Horseshoe Las Vegas.
Code changes Within a week of the fire, Governor List formed a commission to determine whether older hotels in the state should be required to adopt newer fire safety rules. On February 10, 1981, just 81 days after the MGM fire, another fire broke out at the
Las Vegas Hilton, killing eight people. It took several years for all buildings to be in compliance.
Lawsuits More than 1,350 legal claims were filed as a result of the fire, and most law firms in the
Las Vegas Valley were occupied with these cases. Hundreds of lawsuits were filed against MGM, seeking more than $2 billion in
damages. MGM made numerous settlement deals with the victims in 1983, and a $76 million settlement between MGM and insurance companies was made in 1985. In 1998, there was $440,000 left over in the MGM victim settlement. The remaining money was donated to Clark County victims of fires and burns. ==See also==