Melco International Development Limited has revealed that Macau integrated resort Studio City will continue its VIP rolling chip program for 12 months longer than previously planned, until 15 January 2021.
Studio City owner and operator, Studio City International Holdings Limited, announced last year plans to cease offering VIP gaming at Studio City from 15 January 2020. Although the company offered no reason for the decision at the time, analysts at brokerage Sanford C Bernstein suggested that Melco was looking to increase the profitability of each VIP table by moving them to a more suitable property, namely City of Dreams.
Instead, Melco International Development issued a filing this week in which it revealed that Studio City International Holdings Limited had been informed by the property’s gaming operator, Melco Resorts (Macau) Ltd, that it will now continue VIP rolling chip operations at Studio City until 15 January 2021, “subject to termination by a 30-day notice.”
The decision to continue offering VIP play comes as somewhat of a surprise given the property’s most recent 3Q19 results, which saw rolling chip volume fall 45.6% year-on-year to US$2.77 billion, with win rate down considerably from 3.12% in the same period last year to 2.71%.
Melco Resorts is also racing the clock to complete development of Studio City Phase 2 before its government-imposed completion deadline of 24 July 2021.