MGM Mirage And Ho Plan Casino Gambling Expansion In Macau

This past week, the Macau government discussed with gaming operators the possibility of limiting the amount of gambling that is taking place. Despite those discussions, MGM Mirage and partner Pansy Ho are considering expansion.

The expansion could come in two different phases. One part of the plan is expanding their existing casino. The second part of the plan is to search for sites for a potential casino resort. The existing casino project would include finishing their gaming floor.

The expansion plans are part of a big project for MGM that includes an initial public offering. Wynn Resorts recently had an IPO that raised $1.6 billion for the company. MGM is hoping their IPO does the same.

"There is a strong chance that casino operators in Macau will look to expand before the government clamps down on the industry," said Gaming Analyst Brad Dawkins, "Wynn did very well with their initial public offering, and MGM is setting themselves up for similar success with the announcement of these new projects."

The Macau casino industry has been up and down this year. First, they started the year slow when visa restrictions were placed on residents from the Chinese mainland. Then, the visa restrictions were loosened, and Macau had a strong past couple of months.

This week, there was speculation that the restrictions would be tightened once again. If that proves to be true, Macau casino operators could be looking at a decrease in revenue. Even with the slow start to the year, Macau is outperforming their rival, Las Vegas, by a large margin.

October 18, 2009
Posted By Terry Goodwin
Staff Editor, CasinoGamblingWeb.com
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