According to Sanford C. Bernstein Ltd, the Melco entertainment complex in Zhongshan could help the company retain its gaming concession in Macau’s 2022 retender.
Macau.- Melco International has announced a partnership with Agile Group Holdings Ltd to develop a non-gaming complex in Zhongshan, in China’s Guangdong province.
The RMB4bn ($616m) complex, slated for completion by 2025, will feature a theme park, office areas, hotels, service flats, wellness centres and malls.
According to Sanford C. Bernstein, the complex will benefit Melco Resorts with several longer-term impacts since it displays the company’s commitment to developing non-gaming in the greater Macau area.
Anal”should help its positioning concerning Macau gaming concession rebidding.”
Macau’s current casino licences will expire in June 2022 but could be extended for up to five years under the city’s gaming laws.
There are different opinions regarding possible changes to the licence criteria. Some have suggested Macau should include requirements to promote the diversification of Macau’s economy to avoid it being so highly dependant on tourism and the casino industry.
Sanford C. Bernstein analysts stated: “While the project will not open before 2025, once in place, it can provide a co-marketing opportunity for Melco Resorts casino properties in Macau.”
There have also been suggestions that Macau should consider turning to technology and online gambling to maintain revenue.