Against the Odds, a New Macau Casino Opens

Hollywood-themed Studio City is now officially open, with the goal of Melco Crown’s US$3.2 billion (MOP25.54 billion) resort to target the mass market through non-gaming amenities during the coming years.

Other entertainment includes an action-packed 4D flight simulation ride, Batman Dark Flight; a 40,000 square-foot family entertainment centre – Warner Bros Fun Zone – featuring world-renowned characters from Warner Bros’ DC Comics, Hanna-Barbera Productions and Looney Tunes’ entertainment franchises; a live magical experience show – The House of Magic; an Ibiza-style nightclub, Pacha Macau; and a 5,000-seat multi-purpose entertainment centre, Studio City Event Centre, hosting exciting live concerts, theatrical and top sports offerings in addition to award shows and other special showcase events.

It’s a part of a wave of massive-price range tasks opening over the subsequent two years. This is so new and so unique in the fact that there are more attractions here than there are at probably all of the other integrated resorts combined, and we deliberately did something totally different from City of Dreams because I like to do things differently each time.

The revenue decline has mostly been attributed to a corruption crackdown spearheaded by Chinese President Xi Jinping, which has dented the VIP gaming market. The analyst initiated coverage of three names in the sector – Las Vegas Sands, MGM Resorts (MGM – Get Report) and Wynn Resorts (WYNN – Get Report) – with Buy ratings. The ongoing anti-corruption campaign in mainland China.

“The truth is: gaming is really the financial engine”, Ho said.

Macau, an hour by ferry from Hong Kong, is the only place in China where casinos are legal.

Lawrence Ho, CEO of Melco Crown Entertainment said, “We’ve invested 3.2bn USA 95% of the space is for non-gaming”. Ho says that’s the way to tap into a growing Chinese middle class, but admits there’s no long-term future in Macau without gambling.

“This is the future of China”, Ho told reporters at the launch. “The rise of the middle income earning bracket and the rise of the more sophisticated well-travelled customer”.

Junkets, the often shadowy middlemen who have helped fuel Macau’s spectacular casino growth by acting as an informal banking channel, are feeling the pain.

But the system is collapsing as Beijing tightens up on money laundering and capital flight. “We’ve taken out maybe $30 million in dividends over 10 years”.

Macau’s government has put a cap on the number of tables allowed at new casinos.

Adding to the industry’s troubles, another junket company, Dore Entertainment, reported to police last month that an employee allegedly defrauded at least $12.9 million from investors, who have held daily protests.

Mr Packer said Macau’s casino market will revive again in the next few years.

Wynn stated VIP gamers have been wagering half the quantity they did a yr in the past. After it was granted only 250 last week, the Hong Kong-Australian joint venture said it would be forced to renegotiate the loan terms.

The trio star in the Scorsese-directed short film The Audition – essentially a 15-minute advertisement for Studio City – which was played at the resort’s 5k-seat theater on Tuesday.

But Wynn stated that transition is threatened if casinos can not accommodate sufficient gamblers to fund it.

[Among] global gaming companies, we are the biggest believer in entertainment and nongaming attractions.