MGM opens new $3.4-billion casino in Macau
The doors swung open for the first time on Tuesday at MGM's new MGM Cotai in Macau. With a sky-high price tag of $3.4 billion, MGM executives are gambling big on the future of casino action in the Chinese enclave, hoping that the casino performs as well or better than its partner, MGM Macau. It now operates more than 550 gambling tables and almost 2,000 hotel rooms in the region.
Despite the large investments in the gambling mecca, gambling licenses are set to be renewed in the next couple of years, with no world from officials on how the licensing renewal process will be handled, or if they will be denied. MGM has a lot at stake in Macau. The company's first casino in Macau is its current breadwinner in terms of revenue, followed by the Bellagio in Las Vegas.
The opening of the MGM Cotai has been marred by delays. It was initially set to open last year before finally flipping on the lights on Tuesday. It now joins the local casino scene, which saw around three dozen casinos earn about $33 billion last year. It was the first year-over-year increase since 2013 when area gambling houses racked up $45 billion. January 2018 saw the trend continue, with the casinos already having earned $3.3 billion, an increase of 36% over the same period last year.