operator 25
in part by its innovative, high-tech nongaming elements. The property features what it claims is the world’s largest display of permanent LED video screens, with 25 that are four storeys high and as long as a football field. The screens are housed within a giant atrium, known as the Spectacle, which is the world record holder for the largest free-span gridshell glazed roof. The resort also features Asia’s first dynamic theatre, which was designed by the creator of the Cirque de Soleil theatres in Las Vegas, as well as an impressive art collection. The casino floor offers approximately 27,696 square meters, with 1,203 slot machines and 261 gaming tables as at June 30, 2019. The hotel comprises two
towers with 1,363 hotel rooms, suites and skylofts, 12 diverse restaurants and bars, retail outlets, approximately 2,870 square meters of meeting space and other nongaming offerings. “The scale of MGM COTAI allows us to capitalize on our international expertise in providing exciting and diversified entertainment offerings,” the company says. According to Nomura Research, its market share rose to 9.9 percent in volume terms in Q3, compared with 8 percent the same period a year ago. In VIP, its share rose to 8.9 percent from 6.9 percent, while its share of mass was 10.7 percent. Analysts expect its market share to continue to rise with the Mansion on Cotai now fully functional, giving the company greater traction
in both premium mass and VIP. Like Melco Resorts & Entertainment, MGM has focused on the high-margin premium mass segment. At the end of June, it reported 62 percent of revenue from the mass market and 38 percent from the VIP, which is a slightly better split than the industry average. The company has noted however that there is a continuing migration of market share from Peninsula Macau, where its first property opened in 2007. It is now seeking to mitigate the impact by renovating the gaming space for its high-value main floor players. As part of those efforts, MGM Macau has reallocated tables from VIP areas to the main floor to maximise its yield. It has also stepped up its marketing and player loyalty efforts through customer service and promotions through its Golden Lion Club. At the time of the government’s interim review, MGM derived just five percent of its revenue from non-gaming activities. The company had a lower percentage of locals employed in management levels and above, though its pay awards and efforts to upwardly promote local staff were “superior” to the industry average. It was below average when it came to lateral movements within the company. MGM has 10,000 employees, with nearly 20 percent of them being employed since the beginning. It is co-chaired by Pansy Ho, daughter of the legendary Stanley Ho, founder of SJM Holdings. MGM is a sub-concession of SJM and like the Macanese company recently had its license extended until 2022 to bring it in line with the expiry date of the other operators.
property snapshot End-Sept, 2019
Hotel rooms 7,107
Gaming tables 1,684
Slot machines 3,584
vip tables 294
Mass tables 1,390 (Source: Deutsche Bank)
Asia Gaming Briefings | December 2019
