- MGM China Holdings Ltd, a unit of MGM Resorts International (NYSE:MGM), is planning to invest $594 million in its Macau casino operator, the Wall Street Journal reported.
- The move comes after MGM’s decision to apply for a fresh license in Macau.
- Macau has introduced new rules for casino operators whose licenses expire at the end of 2022.
- One of the conditions is that companies are required to increase their capital to 5 billion patacas (~$619 million).
- Also, while the maximum number of casino licenses will stay at six, their tenure will be cut by half to 10 years, and 15% of a company’s share capital must be held by a director who is a Macau citizen.
- The report also added that other U.S.-based casino owners, including Wynn Resorts Ltd (NASDAQ:WYNN) and Las Vegas Sands Corp (NYSE:LVS), plan to renew their licenses in Macau.
- Casino operators in Macau were badly hit after the units were closed following the outbreak of the COVID-19 pandemic.
- Price Action: MGM shares are trading lower by 1.81% at $34.10 in premarket on the last check Monday.
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