The planned investment by Macau gaming concessionaires in non-gaming elements will not prevent casino revenues from increasing in the future, the Chairperson and Executive Director of MGM China, Pansy Ho, commented recently.
According to a TDM TV report, during a Fortune Magazine event held at MGM Cotai, Ho mentioned it is still possible to continue seeing casino revenues increase despite the SAR government’s demands to allocate more and more investment to non-gaming elements.
However, she warned that it is necessary to convince the Macau government and the population of the need to bring in more qualified professionals from abroad and to create an ecosystem focused on entertainment.
“We want the weight of gambling to continue to increase. […] It is gambling that gives us money and the financial means to do more and reach new heights. We have to be able to convince the government and the local population that, if we want to embrace this challenge of diversification and walk together towards the same goal we have to invite more foreign talents and people with specialized knowledge,” the MGM China Executive Director pointed out.
Pansy Ho also mentioned MGM’s plans to build an art museum with over 6,000 square meters and gave more details about the revitalization plan for the Barra area, stating that MGM planned to transform that historic area into an artistic village.
The businesswoman also underlined that the investment commitments made by the concessionaires were realistic and that the diversification goal would be achievable in the next 10 years.
“We have the means, we have the financial resources, we have the need, we have the customer base we have the determination and also a deadline. The most important thing is that we have to do all this in 10 years,” she pointed out.
MGM China saw its net revenues increase some 829 percent in the third quarter of this year to $812.52 million, a rise of 10 percent compared to the same quarter in 2019.
Under their new 10-year concessions, which commenced January 1st, the gaming companies have already pledged to spend in aggregate MOP108.7 billion ($13.5 billion) on non-gaming and exploring overseas tourist markets.
The figure comprises more than 91 percent of their total pledged investment under the 10-year licenses.
The six gaming operators will be required to increase non-gaming investment by around 20 percent of their initial pledge if Macau’s annual gross gaming revenue reaches MOP180 billion ($22.45 billion) by 2027.
For the eleven months leading up to November 30th, Macau’s casino GGR already reached MOP164.5 billion ($20.4 billion).
