But MGTO hasn’t issued essential licenses
MGM Cotai, the next-to-last integrated casino resort planned for Macau’s Cotai Strip, will have its official grand opening Tuesday, February 13, 2018, according to a release from MGM China Ltd.—this despite a statement last week by the Macau Government Tourism Office that it had not yet completed the licensure process for the resort.
Assuming the property opens as planned, it will be just in time for Chinese New Year, a peak time for gambling in Macau, which falls this year on Friday, February 16.
MGM plans two days of special events “to introduce Asia’s most innovative integrated resort, featuring Spectacle and MGM Theater at Cotai, to get a taste of the first-of-its-kind entertainment experiences, never-before-seen-in-Macau innovative dining concepts featuring four world renowned celebrity chefs, and a unique art collection with over 300 pieces of contemporary art and historical masterworks.”
MGM Cotai was supposed to have opened January 29 but was pushed back so the Macao Government Tourism Office could complete the licensing process. Earlier delays were caused by damage from Typhoon Hato in August.
And as late as last Tuesday, the MGTO informed GGRAsia, “The license application for the opening of the five-star hotel MGM Cotai and establishments inside the property still waits for favorable opinions from related technical departments.”
Meanwhile, Macau’s Gaming Inspection and Coordination Bureau says the new resort will receive 125 new-to-market gaming tables, starting with 100 tables for its opening. The other 25 tables will be approved for use next January. The government has also granted MGM permission to move another 77 tables across from its existing property, MGM Macau, on the peninsula, according to Inside Asian Gaming.
The HKD27 billion (US$3.45 billion) resort is the second property developed by MGM China Holdings Ltd.
Japanese brokerage Nomura believes MGM Cotai could have opened at the end of January “with a herculean effort,” reported GGRAsia, but “wanted a bit more time synching the non-casino amenities” and to train rookie staff members.
“There will be no loss attributable to the delay, and customer deposits will be either refunded or credited to the players’ accounts for future visits,” said the Nomura team. “We believe that management will take reservations for Chinese New Year, an important revenue window no operator wants to miss.”
Colin Mansfield, director of corporate finance at Fitch Ratings, said the delays might mean “a short term hiccup in terms of performance and potentially a slower ramp-up of the property.” Fitch says MGM Cotai will open without VIP operations, but may eventually add it.
In addition, it says the Cotai property will help MGM regain its share in the market’s mass segment. They forecast about US$200 million in incremental EBITDA from the new property, and a 7 percent ROI after the opening.
