International casino operator MGM Resorts has announced its plans to invest two extra billion in its Grand Paradise casino in Macau, China. Despite the recent setbacks experienced by the special administrative region’s gaming industry, MGM Resorts continues to firmly believe in the region’s potential.
MGM Resorts Will Support Its Macau Subsidiary
MGM Resorts’ Chinese subsidiary, MGM China, was recently awarded a new 10-year gaming concession contract, allowing the company to continue its operations in the country. Following the happy news, the operator expressed its intentions to invest $2 billion in the local casino over the next decade.
According to the announcement, half of this sum will be treated as capital expenditures. The other part, meanwhile, will cover the casino’s operating expenses.
In addition, MGM Resorts announced that around 90% of the operating expense will be set for boosting tourism and non-gaming facilities. In addition, the company will work to further diversify its offerings for gaming and non-gaming visitors of its Macau-based property.
At the same time, the operator will also expand its casino content with 200 new gaming tables. This will raise the total number of Grand Paradise tables for gaming to 750, allowing more people to play at the same time.
The aforementioned allocation of the resources at hand is not final and is subject to change depending on MGM China’s needs. Furthermore, capital projects and expenses are still subject to review and approval, MGM warned, meaning that the operator’s plans may deviate from its current intentions.
Bill Hornbuckle, MGM Resorts International’s chief executive officer and president, spoke about the latest developments. He said that he is extremely happy at the opportunity to continue his company’s business in Macau. He thanked the Macau government for trusting MGM Resorts and providing it with a new 10-year concession.
The CEO noted that his company has always believed in Macau’s potential and promised that MGM will continue supporting its local team.
As Macau is entering a new milestone, we will continue to share our international network, experience and resources with the Macau team.
Bill Hornbuckle, CEO, MGM Resorts International
Lastly, Hornbuckle concluded that he is confident that MGM China will eventually recover from the current setbacks and will demonstrate its strengths as a tourism and leisure company. The CEO is certain that Pansy Ho, MGM China’s managing director, will lead the team to success.
In November, MGM Resorts provided its Macau-based subsidiary with a $750 million loan.