MGM China Holding’s new Cotai resort, which opens on Jan. 29, has been allocated a total of 125 new tables by the Macau government.
The property will get 100 new live tables at the open, with a further 25 to be added in January next year. It can install about 900 slot machines.
The allocation is lower than that given to Wynn Resorts’ Wynn Palace and Sands China’s Parisian resorts, which were both given 100 on opening in 2016, with permission to add a further 50 on their first anniversary.
None of the new resorts on Cotai have received the table allocation they had asked for, with the government sticking strictly to its policy to cap table number growth at 3 percent a year at least until the end of 2022.
Union Gaming in a note said it ultimately expects MGM Cotai to receive a further 25-table allocation to bring it into line with the other resorts. The timing of the first anniversary is close to the expiry of the company’s license and Union Gaming notes the table allocation is likely to be made once the license issue is resolved.
MGM is expected to transfer some tables from its existing resort MGM Macau.
“In regards to MGM Cotai, we believe that excess table capacity harvested from MGM Macau on the peninsula, in addition to the new tables being allocated by the government, will be enough to achieve current revenue and cash flow forecasts for the company,” it said.
The new resort has a jewellry-box design and cost HK$27 billion property ($3.4 billion) to develop. The company pushed back the launch from the fourth quarter of last year due to construction delays caused by Typhoon Hato.
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