MGM Growing In Macau

At present, MGM Resorts’ share of the casino market in Macau is the smallest of the six companies with properties in the Chinese territory, but that may change soon.

MGM China Holdings Ltd., the local arm of U.S.-based MGM Resorts International, accepted Oct. 18 a land concession contract from the Macau government for a 17.7-acre plot in the Cotai district, a piece of reclaimed land earmarked for new casino resorts. 

The plot includes facilities for Sands China, the Macau branch of Las Vegas Sands Corporation, and casino magnate Steve Wynn, both of whom have already signed land deals. 
The price of MGM’s concession is $161.4 million, but it will also have to pay $269.4 million per year during construction, which has to be completed in five years, and then $681.4 million per year thereafter. The lease itself is for 25 years. 
Macau is the only place in China where gambling is legal. Last year gambling in the territory brought in $33.5 billion in revenue, five times the amount in Las Vegas in 2011.