MGM China could add up to 3 percent in new market share over the next 24 months thanks to 197 new gaming tables allotted by the local government.
The U.S.-based gaming giant has two casinos in the Chinese special administrative region (SAR), MGM Macau and MGM Cotai. The new tables were granted under the SAR’s new gaming concession rules.
In a note, Morgan Stanley analysts Praveen Choudhary and Gareth Leung wrote, “We see [MGM China’s] market share in terms of the number of gaming tables increasing from 8 percent in 2019 to 13 percent in 2023. We believe MGM mass market share will increase from 10 percent in 2019 to 13 percent in 2024.”
According to Inside Asian Gaming, more market share could make MGM China a better investment than its Macau rivals. Its EBITDA estimates for 2024 are 30 percent higher than the street, the analysts said. “We view this level of valuation as attractive.”
MGM China saw its table allocation grow from 553 at the close of 2019 to 750 this year, giving it 12.5 percent of all gaming tables in Macau. Melco Resorts also has 750 tables. Wynn Macau has lost a number of tables, down to 570 this year from 654 at the end of 2019.
