MGM Resorts International is one of the largest and most successful casino companies in the world. Lately, analysts have been questioning how MGM Resorts’ casinos in Macau are affecting the company. Things have been far from ideal in this Chinese territory, to say the least.
China continues to implement intense safety measures here. The future of one of the world’s biggest gambling hubs remains uncertain. Today, we’ll discuss how things may change here in the future.
Let’s get into it!
MGM Resorts’ Casinos in Macau Continue to Struggle
Macau has been one of the world’s most profitable gambling destinations for decades. Lately, however, this territory has seen its casino industry struggling to stay afloat. Much of this is due to the intense new regulations being set in place from Mainland China.
MGM Resorts International is one company suffering from this increase in regulations. This major gaming operator owns two casino-resorts in Macau. Revenue from these properties has remained extremely low since that pandemic began in early 2020.
Officials within MGM Resorts don’t seem overly concerned. Bill Hornbuckle, CEO and president of MGM Resorts International, spoke with the media recently about China’s impact on the company’s operations in Macau.
“Until proven wrong, I’m not and we’re not overreacting to what is being hyped or said,” Hornbuckle said. “We are hoping rational minds control in the end because this is the Macau economy… [Local and national officials] recognize the value that it [casino industry] brings and ultimately the value that we’ve brought as operators to the greater community. I mean we do a lot in the community just beyond employment, which is a big piece of it, of course. So I, I think we’re all in good standing.”
It’s likely that MGM Resorts’ Casinos in Macau will continue to suffer. Fortunately, this company has been performing well with its operations throughout the United States.
Will MGM Resorts Expand Further in Las Vegas?
Macau remains the biggest casino hub in Asia. Over in the United States, Las Vegas still holds that title. It’s here that some of the biggest and most expensive casinos ever built are located. That includes the recently opened Resorts World Las Vegas, which cost an incredible $4.3 billion to construct.
MGM Resorts owns many popular gambling venues in Las Vegas. This company is showing a new motivation to expand in Sin City, too. News broke recently that this company is set to acquire The Cosmopolitan Resort for $1.6 billion.
Moving forward, MGM Resorts will take control over The Cosmopolitan’s operations. It will not own the real estate; instead choosing to pay $200 million in annual rent. That number will increase by 2% to 3% over the next 30 years.
There is no doubt that MGM Resorts is focused on expansion. Las Vegas has bounced back tremendously from the events that unfolded in 2020 and continues to break gaming revenue records. It seems that MGM Resorts is interested in breaking into the US online casino industry, as well.
It’s an interesting time for the entire US casino industry. Things are also ramping up for US sports betting operators with several new states set to launch their first sportsbooks soon.
States Continue Preparing for First Sportsbook Launches
Sports betting was limited to Nevada for most of the past few decades. Finally, in 2018, the US Supreme Court struck down PASPA. This opened the door for every state in the country to legalize and regulate this popular form of gambling.
The past couple of years has proven how large of a demand there is for sports betting throughout the US. More than half the nation now has regulated sports betting options available. Several more states are preparing to launch their first sportsbooks in the near future.
Florida is one of those states. Lawmakers here technically legalized this form of gambling earlier this year. Unfortunately, legal battles between several pari-mutuel companies have delayed the launch of any regulated sportsbooks here. Hope is that these sportsbooks go live in early 2022.
Louisiana is another state working hard to get its sports betting operations live. Several delays have come up in the process.
Those hoping to see Massachusetts legalize sports betting in 2021 might be out of luck. The State Senate recently announced it has no plans to approve a sports betting bill this year. Residents here are now looking head to 2022 for this to take place. Stay tuned for updates!
Are you surprised at how MGM Resorts’ casinos in Macau have been faring? Will casino companies soon decide to leave Macau entirely? Let us know in the comments section below.