MGM Resorts International’s MGM Grand Paradise has been awarded a new concession contract in Macau. The agreement will cover a 10-year term.
MGM Grand Paradise is the concession holder of MGM China Holdings Ltd.
Under the terms of the deal, MGM China will invest nearly $2bn during the next 10 years. Out of that total, the company projects that “50% is expected to be treated as capital expenditures and 50% as operating expense.”
MGM said close to 90% of the investment “will be earmarked for the development of international tourist markets, non-gaming projects and programming to drive diversification to the region.”
In addition to the investment portion of the agreement, MGM China will gain 200 table games, which will bring its current total to 750. These new tables will offer an opportunity for market share growth in the future, according to the company.
MGM Resorts International CEO and President Bill Hornbuckle commented: "On behalf of MGM Resorts International, I would like to express my heartfelt gratitude to the Macao SAR government for giving us support and opportunity on the new gaming concession. We always believe in the strong potential of Macau.
“As Macau is entering a new milestone, we will continue to share our international network, experience and resources with the Macau team.”
Hornbuckle went on to add that he believes the MGM China segment will continue to thrive under Ho’s leadership.
He finished by saying: “Under the leadership of Managing Director Pansy Ho, together with our remarkable management team, I am confident that MGM China will demonstrate further strength in the integrated tourism and leisure industry and continue to make contributions to Macau."
