MGM opens new US$3.4 bil resort in Macau

HONG KONG (Feb 13): MGM Resorts International’s debut of its US$3.4 billion ($4.5 billion) property Tuesday is the latest bet on the world’s biggest casino hub, as licensing bids and China’s proposal to allow gambling on a nearby island cast uncertainties over Macau’s future.

MGM is among the last of the operators to develop on the family-friendly Cotai strip, following Wynn Resorts Ltd.’s Wynn Palace and Las Vegas Sands Corp.’s Parisian. The resort’s opening this week capitalizes on the booming tourism demand during the Chinese New Year holiday that’s seen rooms at major hotels fully booked with increased rates.

The splashy addition, which includes a 2,000-seat theater, comes as Macau faces competition from new destinations across Asia, including a plan by the Chinese government that paves the way for casino gambling on the island of Hainan. Sexual misconduct allegations against magnate Steve Wynn have also cast a shadow over the industry even as regulators are setting out license bidding rules.

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