MGM China Chair Ready To Increase Non-Gaming Investment in Macau
Summary:
- MGM China’s Pansy Ho said the company is willing to boost its non-gaming investment in Macau
- The casino operator is getting ready for it and is in talks with its syndicated banks
- MGM China will also develop a culture and arts center and build a themed structure at its Macau properties
MGM China Holdings Ltd is prepared to increase its investment in Macau should the government require it to do so as part of its new 10-year concession contract, according to the company’s chairperson, Pansy Ho Chiu King. It is something that the casino operator has always considered since renewing its gaming concession in the city, Ho added.
Additional Investment Not A Problem
Under the new 10-year concession agreement with the Macau government, the city’s six concessionaires may be asked to make an additional investment if annual casino gross gaming revenue (GGR) hits MOP180 billion (US$22.3 billion).
At the start of the concession on January 1, 2023, Macau casino operators initially pledged a total of MOP108.7 billion for non-gaming projects and initiatives to attract overseas customers. That figure could increase by up to 20% over the next 10 years if the GGR threshold is met in any one year.
That wouldn’t be an issue with MGM China as the company has been planning the financing for it with its syndicate of banks, Ho stated in a recent interview with the media.
MGM China is pouring MOP15 billion into non-gaming projects within the new concession period. If it proceeds with the 20% additional investment, the casino operator will invest a further MOP3 billion in similar initiatives.
Underutilized Areas To Become Spaces for Culture and Art
Ho also revealed that they plan to convert spaces not fully utilized at MGM China’s Macau properties into areas dedicated to culture and art. Such spaces include the entire first floor of MGM Macau measuring approximately 60,000 square feet, and a 100,000 square-foot zone at MGM Cotai. Ho said both areas will be renovated and are expected to be ready for launch by the third quarter of 2024.
Equipped with advanced technology, the revamped spaces will accommodate art exhibitions, or exhibitions of jewelry or other luxury items. The main goal is to create something unique out of the small spaces, Ho said.
MGM China will also build a “themed structure” outside MGM Cotai, which will be half the height of the existing property. Ho did not give further details as to when they plan to start work on the project, but she did confirm that they will obtain the necessary permits from the Macau government for the themed structure as well as the culture and art exhibition space.
The announcement follows the launch of the “Valkyrie Miss Dior” art installation at MGM Cotai on August 29.
David WalkerAuthor
David is our resident 'down under' contributor, letting us know what is going on in the southern hemisphere, he is also keen blackjack player
