MGM Mirage plans casino resort in Macau
MGM Mirage, one of the largest land-based casino operators, announced its new casino project in Macau, a Chinese city situated on the coast. According to Chinese legislation, Macau is the only city in the whole country which allows gambling business. Experts estimated that this fast growing gambling market collected 25-30 percent expansion over the next few years.
According to Onlinecasinonews.com, American companies have many advantages of operating in this city. The major factor is an opportunity for cross marketing in such a developing place, captured by the only one casino monopoly of Stanley Ho. So far MGM Mirage signed an agreement with Stanley’s daughter company, Patsy Ho Chiu-king, to build the site by 2006 and to display MGM Mirage brand on it.
Alan Feldman, a MGM Mirage representative, described Macau market, “This is an extraordinary place to operate. Taking into account the May opening of the Sands Macau casino, the city’s casinos are expected to generate US$4 billion in gambling revenue per year, compared to Las Vegas US$5billion generated in the twelve months period until 30 April this year.”
The city seems to draw much more people with Chinese government’s recent directive. According to the decision, more travel visas are to be granted for citizens visiting this coastal province.
Joe Greff, a gaming analyst with Fulcrum Global Partners commented MGM Mirage’s plans, “Even without the cross-marketing opportunity, it’s a smart move to get into the market. The company could stand to make a 40% return on their investment, with share prices increasing as a result.”