MGM China said it believes it will be in a position to satisfy the Macau government’s requirements to retender for its concession when they are set out and confirmed it had also agreed to pay MOP47 million ($5.8 million) for an extension.
The Macau government has said that it will extend the city’s gaming concessions for six months until end-December to allow more time for the retendering process. There is no clarity as yet as to when that process will begin, MGM said.
In its annual report, MGM said that its MGM Grand Paradise unit had submitted its request to be granted more time on March 11th and had agreed to pay the fee. It has also agreed to provide a bank guarantee to secure the fulfillment of MGM Grand Paradise’s payment options towards employees should it fail in its bid.
Other operators, such as Wynn Macau and Melco Resorts & Entertainment, have also disclosed they will pay the same amount for the extension.
The group continues to closely monitor developments regarding the gaming concessions
retendering or extension, including the issuance of guidance by the Macau Government,” it commentated. “The group intends to respond proactively and believes that it will be in a position to satisfy the relevant requirements as they may be set out by the Macau Government relating to the extension of the existing sub-concession contract and the retendering of a gaming
MGM’s report also confirmed MGM has “suspended” activity with junket operations in December. It said it is focused on the premium mass segment and therefore is well-placed to take advantage of the growth in this area.
MGM China said 80 percent of its gross gambling revenue came from the mass market last year, with 20 percent from VIP. This compares with 72 percent and 28 percent respectively the previous year.