MGM Resorts opens US$3.4b casino in Macau as revenues boom

Image of MGM Cotai in Macau from YouTube.Image of MGM Cotai in Macau from YouTube.MACAU, Feb 13 — MGM Resorts opens its US$3.4 billion (RM13.4 billion) casino resort in the -controlled territory of Macau today, just days ahead of the Lunar New Year holiday, hoping to ride a boom in business in the world’s biggest gaming hub.

MGM Cotai, which will more than triple the number of MGM’s rooms in the former Portuguese colony to 1,972, marks a major expansion into hospitality amid uncertainty over the renewal process of its casino license that expires in two years.

The new resort, MGM’s second and the biggest investment in Macau, boasts a 2,000-seat theatre and artwork including 28 carpets from the Qing dynasty. It will increase MGM’s overall gaming table count in the hub by 29 percent to 552.

MGM is one of six licensed casino operators in the special administrative region located on the heel of ’s southern coast, and it is the only place in the country where citizens are allowed to gamble legally.

But MGM’s licence is due to expire in 2020 along with SJM Holdings, while licences for Sands China, Wynn Macau, Galaxy Entertainment and Melco Resorts are set to expire in 2022.

Macau authorities have provided little information about whether, and how, the licences will be renewed.

Ahead of the expirations, operators including MGM have tried to diversify into non-gaming to pacify Beijing which has been increasingly wary of Macau’s acute reliance on gambling, which accounts for more than 80 per cent of its revenues.

MGM Cotai, operated by the company’s Macau unit MGM China , will open with around 177 mass gaming tables, according to analysts, with VIP gaming mostly handled by middlemen junkets set to open by the end of the second quarter along with the resort’s luxury mansion villas.

The opening comes at a time of surging casino revenues. Macau’s numbers stormed past expectations with a 36 per cent year-on-year jump, the 18th such gain in a row, on demand from big whale gamblers and mom-and-pop mass punters. — Reuters

Source: The Malay Mail Online

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