MGM China enters into new trademark agreement with MGM Resorts

MGM China Holdings Ltd will pay US$173.2m over the next three years.

Macau.- MGM China Holdings Ltd has reported that it has entered into an agreement with its US parent company MGM Resorts International to continue using MGM trademarks. It will pay up to US$173.2m over three years from January 1 2023 until December 31 2025.

The firm said it had been granted the licence to use “MGM”, “MGM Grand”, “MGM Grand Macau” and the MGM lion and other “MGM-related service marks, trademarks, registrations and domain names” owned by MGM Resorts and its subsidiaries.

According to the company filing, MGM China has agreed to pay monthly licence fees calculated at 1.75 per cent of its consolidated gross monthly revenues, subject to an annual cap of US$55.6m for 2023, US$57.6m for 2024 and US$60.0m for 2025. The fees will be paid by the 15th day of each following month.

MGM China will also pay up to HKD65m in 2023 for marketing services, rising to a maximum of HKD75m for 2024, and HKD85m for 2025.

MGM China has recently secured a new 10-year gaming licence in Macau. Andre Cheong Weng Chun, chairman of the tender committee and Secretary of Administration and Justice, said that MGM China’s proposal received the highest score in the licence tender.

MGM Grand Paradise Ltd stated: “We fully devote to the Macao SAR. We will continue to develop the city with our strengths and contribute to the non-gaming industry, meanwhile making vigorous efforts in expanding the tourist markets from foreign countries.

“MGM Grand Paradise will continue to work with all sectors of the society to a new chapter in the development of tourism, leisure, and entertainment and create a milestone of ‘Integrated Tourism in Asia’.”

See also: MGM Resorts to issue loan of up to US$750m to MGM China