MGM Resorts International’s Chinese arm won approval on Wednesday for another Macau resort-casino, putting it one step closer to catching its rivals in gambling’s most lucrative market in the world.
Notice of the plan to build MGM China’s new resort for $2.5 billion was published on Wednesday in the official government paper of Macau in the District of Cotai. Today’s announcement means the company, based in Las Vegas, cleared another of its hurdles as it continues its race to construct a second casino to better compete with its competitors, whose presence in the hub of Asian gambling is much bigger.
In November, the company announced it had been given the land concession for their project, which will include a five star resort with 1,600 rooms, 500 gambling tables and over 2,500 slots.
Macau is a semiautonomous region of China and has become an important source of income for operators from around the world. Revenues from three dozen casinos, which receive players from mainland China, are over six times the money earned from resorts on the Las Vegas Strip.
Revenues were up 14% to more than $38 billion in 2012, but growth was down from 2011 by 42%. MGM’s presence is relatively small in comparison to the likes of others such as The Sands, which is operating four casinos.
Macau’s other five casino operators have plans for new projects or for expanding upon existing casinos along the Cotai Strip, swampland that was reclaimed and modeled after the strip in Las Vegas.
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