MGM Resorts assures investors of successful Macau, Osaka Bids

MGM Resorts International, through its Chief Financial Officer, Jonathan Halkyard has announced that it is confident of being successful in its plan for growth in Asia, which includes winning the bid for a 10-year gaming concession in Macau despite the other contenders and developing an integrated resort in Osaka, Japan.

The renowned resort had operated a casino in Macau for the past 20 years and is looking to continue providing top-notch entertainment after its current license expires. Halkyard told investors these while giving a talk at the Deutsche Bank Leveraged Finance Conference some days ago.

Halkyard assured investors that MGM Macau was a shoo-in for one of the six operating licenses that will be given out by the Macau SAR Government. He further gave a run-through of the company’s present financial position, future expectations and strategic plans for the group’s growth. He noted that central to these plans are the bids for the license renewal in Macau and resort development in Osaka.

Back in July, the Macau SAR Government launched new public tenders for casino concessions which directed all concessionaires to submit their proposals within 48 days following the announcement. All six operating casinos in Macau tendered their bids for the six available licenses which will be awarded before the current ones expire on 31 December 2022. However, at the eleventh hour, Genting Group Affiliate GMM, in an unexpected move, submitted their proposal for one of the licenses. And according to analysts, the company has a good chance in the bidding war based on its reputation and reach. The competition has thus caused a stir of uncertainty among operators.

However, according to Halkyard, there is no cause for alarm for MGM. In his words, “We worked very hard on our application for the re-tendering.”
“We submitted that a week ago. We had oral presentations this past weekend which I’m told went quite well from our perspective. We understand that this process is going to continue for the next three months and a decision will be made by the end of the year so that’s the timeline we’re working on.”

“How that timeline works in terms of individual milestones and back and forth is to be determined, but there is no greater priority for our MGM China management team right now and for MGM Resorts as majority shareholder than seeing us through to a successful conclusion.”

Meanwhile, MGM continues to wait for the verdict from the central government of Japan on its plans to develop a $9bn integrated resort in Osaka that would feature hotels, casinos, restaurants and other entertainment sites. The city prefecture confirmed MGM and its local partner ORIX Corp to be their preferred partner for the project last September and the bid was submitted in April this year. The project would start once the government picks the locations and assign licenses to operators. Halkyard believes the project is a “fantastic property” and that the company is optimistic about its chances.

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