MGM wins approval for Cotai casino

    Shares in MGM China (2282:HK) jumped almost 6% last week after the announcement that the Macau government granted it approval for a new mega casino on the Cotai strip.  The project has a budget of around $2.5 billion, and the 17.8 acre site will include 1,600 hotel rooms, 500 gaming tables and 2,500 slots. MGM Resorts International chief executive Jim Murren expects profits of the subsidiary to more than double once the new property is online. Nonetheless the company will have to get in line – behind Wynn Macau (1928:HK) to break ground in Cotai and before that GEG, which preempted the competition’s plans by announcing and starting phase II of their Galaxy Macau complex.