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MGM Strengthens Position in Macau
Brand names need to do a lot of important moves to stay relevant. They can buy new properties and rebrand them, upgrade existing ones and invest in their subsidiaries, among other things. One of the giants in the casino industry, MGM, has been doing that recently.
Following the recent expansion on the Strip with the BetMGM Sportsbook and Lounge, MGM is looking to have a better foothold in Macau, China. One of its subsidiaries, Ho’s Holdings has been chosen as an investment to secure a Macau casino license for MGM.
New Macau Legislature Prompts MGM Move
Macau is pretty much in shambles because of the pandemic and is introducing a new legislature to Macau operators. Namely, if an operator wants a license then the operator must be a Macau resident and own at least 15% of the capital of the company. The MGM Grand Paradise will get an investment of $594 million.
In addition to this MGM China will award the new concession to the newly appointed chairman, Pansy Ho. MGM Paradise will also issue Class A and B shares into the company and this will increase MGM Resort International’s stake to 0.4%. Pansy Ho will be operating in accordance with the new legislature, owning 15% of the capital and being a Macau resident.
This legislature was implemented because the Macau government is cracking down on VIP and luxury gaming. With this move, operators are forced to take another approach and focus on foreign gamers as well as mass-market gaming. In addition to this, the operators are lining up for a new license as the September deadline approaches.
There’s no doubt that Macau will overcome the current crisis and operators will adapt to the new legislature. By making the current move, MGM will continue to operate in Macau in adherence to the current legislation.
MGM has been pretty busy lately and has been making some moves. Sadly, it had to say goodbye to The Mirage Hotel, but the money from that sale was turned into an investment as it bought The Cosmopolitan and it got a sportsbook too. The BetMGM Sportsbook and Lounge is the new MGM presence on the Strip and it’s going to stay there for a while.
The current move in Macau is an international one and it continues to solidify the reputation of MGM as a global or rather international brand name in the casino industry. MGM Grand may continue with the moves and improve its standing in the industry as big brand names often do.
MGM Grand adapts to the new legislature in China so it can strengthen its position in the country. MGM has been busy of late and it will probably continue to be busy with moves that put her in the top tier of brand names that have shaped the casino industry. In other words, it’s a giant in the industry so it has to make big moves.