MGM China Holdings Ltd, one of Macau’s fastest-growing casino operators, is in talks to secure a US$2 billion loan. The objective is to finance a significant expansion in the local gaming market.
The company has already approached a number of banks seeking a line of credit in Hong Kong dollars, with a five-year term. This would be the group’s first loan since the Covid-19 pandemic.
Record revenue driven by Macau market
In February 2024, MGM Resorts International, the parent company of MGM China, recorded consolidated net revenue of US$17.24 billion, an all-time record. The value surpassed the US$16.16 billion in 2023, representing an increase of 6.7%.
CEO Bill Hornbuckle highlighted that the result was driven by “MGM China’s record performance”.
He stated: “These are the best full-year consolidated net revenues in the company’s history. The strong demand seen so far into 2025 puts us in a favorable position for continued growth.”
MGM China‘s revenue increased 27.6% to reach US$4.02 billion. This represented the second largest slice of MGM’s revenue pie, behind only the Las Vegas Strip.
Expansion focused on attracting new audiences
MGM China plans to expand its operations in Macau, with a focus on attracting high-income players. Since mid-2024, the company has been developing capital expenditure projects for MGM Macau and MGM Cotai.
During an earnings call in November, MGM announced the expansion of the premium gaming area at MGM Macau. It also revealed plans to increase the number of villas by 25% and transform 160 standard hotel rooms at MGM Cotai into 60 high-end suites.
According to Kenneth Feng, president of MGM China, the renovations are expected to be completed in the second half of 2025. “Once the projects are completed, we believe that we will continue to lead the market in Macau,” he declared.
Strategy to diversify offers
In addition to gaming, MGM China seeks to diversify its offerings to align with local government mandates. This includes attracting visitors with non-gaming options such as the Macau 2049 residency at MGM Cotai and the Poly Art Museum at MGM Macau.
During Chinese New Year, the Poly Art Museum attracted more than 10,000 people in a single day. The company is also evaluating the possibility of adding new hotel rooms, spas and other wellness centers.
MGM China currently offers 2,000 rooms in Macau, the smallest portfolio among the six major casino concessionaires. With the renovations and expansion, the company hopes to consolidate its position in the market.
Growing market share
In 2024, MGM China held about 15.8% market share, a significant increase from the 10% recorded before the pandemic. The company continues to stand out as one of the best performing operators in Macau.
With planned expansion and a focus on diversification, MGM China seeks to strengthen its position and expand its attractiveness to different market segments.
