MGM Resorts extends branding partnership with MGM China

MGM Resorts International has announced that it has signed a new long-term branding agreement with MGM China Holdings Limited, effective January 1, 2026.

Under the agreement, the monthly license fee will increase from 1.75% to 3.5% of MGM China’s adjusted consolidated net monthly revenues, as calculated under IFRS. The fees will be subject to an annual cap based on variables including business volumes, in compliance with Hong Kong Stock Exchange requirements. MGM Resorts will receive approximately two-thirds (66.6%) of the total license fee.

The agreement secures the MGM brand for MGM China through the end of its current concession in 2032. If a new concession is granted, the agreement will automatically extend to the earlier of the new concession’s expiration or December 31, 2045.

MGM China has seen strong post-pandemic growth, with market share nearly doubling from approximately 9% before the pandemic to roughly 16% year-to-date through September 30, 2025.

The new agreement eliminates the need for renegotiation every three years, protecting a key MGM China intangible asset after its concession and ensuring compensation for MGM Resorts.

However, some analysts have suggested that doubling the monthly fee could hurt MGM China in the short term. Morgan Stanley lowered its EBITDA forecast for the company by 7%, noting that the royalty now represents roughly 15% of corporate EBITDA—twice the previous level and significantly higher than most competitors.

By comparison, Sands China pays its parent company 1.5% of monthly revenue, while Wynn Macau pays 3%.

The higher fees follow mandatory investments of over $16 billion by MGM and other Macau casino operators into non-gaming projects to secure 10-year concession extensions, with MGM committing more than $2 billion beyond its casino floors.

MGM Resorts and Pansy Ho stand to gain the most from the increased licensing fees. CBRE Equity Research projects 2026 licensing fees of about $166 million, with 66.6% going to MGM Resorts and the remainder to Ho. Monthly fees increased from $55.18 million in 2023 to $70.39 million in 2024.

In 2024, MGM China contributed $4 billion to MGM Resorts’ total net revenue of $17.24 billion, including nearly $3.5 billion from Macau casinos—well above the $2 billion from MGM’s Las Vegas Strip operations.