Inside Asian Gaming

MARCH 2018 INSIDE ASIAN GAMING 17 What impact will MGM Cotai have on the company’s bottom line? The general consensus is that the property will be a game-changer for MGM China, which has seen its mass market share shrink to around 7% over the past 12 months due to its lack of a Cotai presence. COVER STORY de Jogos de Macau SA (SJM), is racing the clock to open its new Cotai resort by late 2019, while the concessions of the four holders to have already opened resorts in Cotai – Sands China, Galaxy Entertainment Group, Melco Resorts and Wynn Macau – don’t expire until 2022. That makes MGM’s US$3.4 billion investment – second only to City Center in Las Vegas among MGM Resorts’ 18 casino resorts worldwide – even more significant given the Macau government has so far given little away about its licensing plans. Nevertheless, MGM sees this latest addition to the Cotai landscape as key to its license renewal aspirations. “We increase the probability and continue to improve our belief that we are deserving of an extension by the actions we carry out,” Bowie explains, “so having to invest this amount of money is part of the process of demonstrating our commitment to Macau. “Clearly when you’ve invested US$3 billion, the money can’t leave Macau. That’s a big indication from us at MGM and all of our shareholders that we are committed to Macau for the long term, we are innovating, we are responding to the strategic requirements. “I think the government has been very clever in not giving too much away because it makes all of us work harder, do more and be more effective in delivering the strategic transformation the government has set out for us.” Despite the ongoing uncertainty, there is also a palpable sense of relief at MGM that MGM Cotai is finally open for business, having broken ground back in February 2013. Originally scheduled to launch in early 2017 at a cost of around US$2.5 billion, construction delays first pushed that date back to 4Q17 before damage suffered from Typhoon Hato in August delayed the opening even further. Finally, MGM Cotai has opened with 177 gaming tables it was always about diversifying and providing a competitive advantage for Macau, so today with the opening of MGM Cotai, it is significant to us.” As Bowie alludes, the timing of MGM Cotai’s long-awaited launch couldn’t be more significant. Twelve months later than originally planned due to a series of construction delays, it comes just two years shy of MGM’s Macau casino license expiring in 2020. Ironically, the other Macau concessionaire up for renewal in 2020, Sociedade