Asia round-up: MGM China financials, Nepal licences and more
MGM China sees financial improvements for 2021
In 2021, MGM China’s net revenue saw an 85% increase to approximately HK$9.4bn (US$1.2bn). The group reported an adjusted EBITDA of HK$390m for 2021, compared to a negative adjusted EBITDA of HK$1.4bn for 2020.
Daily gross gaming revenue saw an 81% year-on-year increase. MGM Macau reported an 85% revenue increase and hotel occupancy of 80%, compared to 36% for 2020.
MGM Cotai saw a revenue rise of 84% and hotel occupancy of 47%, compared to 22% for 2020.
Meanwhile, MGM China also commented on the launch of the “Amendment to the Macao SAR Gaming Law No 16/2001” by the Macau Government, suggesting that it welcomes and supports it.
Kenneth Feng, President, Strategic & CFO of MGM China, said: "The recent constructive developments during the process of retendering reaffirm our confidence in Macau Government's judicious and fair approach to the process. Macau is an important part of our future and we will continue to work with the government on retendering.
"We remain cautiously optimistic towards a market recovery. We are going to see not just repeat customers, but new faces especially in the premium mass segment. We understand what our customers want and MGM China is well-positioned for the market's eventual rebound.
"As a corporate citizen in Macau for 20 years, we have a high conviction in the future success of this region. We look forward to further investing and promoting the long-term development of Macau and supporting the government's tourism and diversification goals for the region.”
Former Wynn Resorts executive sentenced to prison for giving bribe
Ex-Wynn Macau President Gamal Abdelaziz has been sentenced to one year and one day in federal prison, for having bribed his daughter’s way into the University of Southern California (USC).
A Boston-based judge has also sentenced Abdelaziz to two years of supervised release, 400 hours of community service and a fine of $250,000.
According to prosecutors, Abdelaziz paid $300,000 in 2018 to have his daughter admitted to USC, in a scheme that involved the creation of a basketball profile completed with a list of falsified awards; as well as numerous athletic honours that portrayed his daughter as an athletic recruit, even though she had not played the sport in over a year and had never been a member of her high school’s varsity team.
Abdelaziz pleaded not guilty during his trial and his attorney tried to depict him as a victim of deception.
Several other parents were also implicated in the scheme but Abdelaziz received the heaviest penalty because, according to prosecutors, he was “intimately involved in the lies at every step of his daughter’s fraudulent admission to USC."
Two Nepal casinos lose licences
The Nepal Government has cancelled the casino licences at two hotels for not paying their royalty fees.
The Yak and Yeti Hotel’s casino licence has been cancelled and its five-star classification has been revoked for having failed to pay RS420m ($5.5m).
The Dreamland Hotel failed to pay RS3.8m and has had its mini-casino shut down.
At the beginning of February, the Ministry of Culture, Tourism and Civil Aviation had announced five casinos that were required to pay their debts within seven days.
The other properties, which did pay off their debts and were able to keep operating, were Oriental Hotels, Rock International Kathmandu and Central Media.
New hotel projects under development in Macau
According to GGRAsia, Macau has reported 19 recorded hotel projects in addition to the 15 that were under construction at the end of Q4 2021.
Most of the fresh hotel properties are reported to be associated with Cotai Casino Resorts. Galaxy Entertainment Group is another of the gaming operators creating new hotel space.