Cotai Casino Launch Gets Delayed

MGM China Holdings, one of the largest casino operators in Macau, has once again postponed the opening of the MGM Cotai Casino. The project, estimated to be worth around $3.4 billion, was supposed to open this month, according to reports from last year.

 

However, MGM China has put the launch on hold, citing pending approvals.

 

Not the first delay

 

The Cotai is MGM’s second integrated casino facility in Macau. According to the original schedule, it was set for an opening on the 29th of January. Even invitations for the launch had been sent out.

 

This isn’t the first time the Cotai’s launch has been plagued by a delay.

 

The first launch was scheduled in 2016. This was eventually postponed to early 2017 and then again to late 2017. In September 2017, MGM announced that the launch would be further postponed to January 2018.

 

In a recent filing to the Hong Kong Stock Exchange, MGM mentioned that the company was still waiting to receive certain licenses under the usual administrative approval process. Based on current estimates, the company has stated that the Cotai opening will probably take place sometime next month.

 

MGM also stated that the total budget for the project has largely remained unchanged, still hovering around the $3.4 billion mark. When asked about the pending approval, the company replied that it was “working closely” with the government in Macau.

 

Ever since the announcement of a further delay was made, the company’s shares experienced a drop of 7.6%.

 

A grand project

 

The MGM Cotai is a grand structure that will be home to around 1,390 hotel rooms. The entire project took around 5 years to be developed. The objective behind the setting up of the MGM Cotai was that it would help bring about more diversity in MGM’s products and also open up an avenue for innovative and advanced entertainment options in the Macau market.

 

MGM China is a collaboration between Las Vegas-based MGM Resorts and Pansy Ho Chiu-king, who happens to be the daughter of Stanley Ho Hung-sun, a gaming mogul. MGM already operates a major venue in Macau City known as the MGM Macau.

 

The resort casino employs almost 6000 people and posted earnings of around HK$3.68 billion last year in the third quarter. This was 5% more than what it earned in the second quarter of the same year.