Melco CEO plays down concerns about Macau measure on illegal money exchange

Lawrence Ho said the measure could have a small impact in terms of liquidity for players.

Macau.- Lawrence Ho, the chairman and CEO of Melco Resorts & Entertainment, has addressed concerns about an amendment tackling illegal money exchange in Macau’s proposed Law on Combating Illegal Gambling Crimes. During a Q2 earnings call, Ho downplayed the impact and said the gaming industry is rebounding after a temporary slowdown earlier in the summer due to the delayed start of Chinese school holidays and Euro 2024.

However, Ho admitted the proposed legislation would have “a bit of an impact in terms of liquidity to players.”

Under the amendments, unauthorised money changers could face sentences ranging from one month to five years in prison. They could also be banned from casinos for between two and 10 years. The proposed provision also covers hotels and performance venues that are ancillary to an integrated resort.

Melco Resorts posts revenue of US$1.16bn for Q2

Melco reported operating revenue of US$1.16bn for the second quarter of the year, up 22 per cent in year-on-year terms. The increase was attributed to improved performance in the mass market segment and non-gaming operations driven by the recovery in inbound tourism to Macau.

The company posted operating income of US$123.7m, compared to US$64.3m in the second quarter of 2023. The group’s adjusted property earnings before interest, taxation, depreciation and amortisation (EBITDA) was US$302.8m compared with US$267.3m in 2023.

Lawrence Ho said: “Our strategic initiatives to expand revenue and profitability, and drive growth continued to evolve in the second quarter of 2024. We are investing in people and incorporating enhancements to our properties to provide the best premium experience available in Macau to our patrons. We’ve seen growth in GGR quarter-to-quarter and year-over-year, and our teams are focused on driving continued expansion of our market position.”