he $3.3 billion complex on the Cotai strip, slated to open in the fourth quarter, aims to cater to recreational gamblers instead of high-rollers, Chief Executive Officer James Murren said.
“Our business model is not predicated on the VIP business.”
Murren explained, adding that MGM’s strategic plan is built on catering to the “tremendously emerging more-affluent Chinese customers.”
After China’s 2014 corruption crackdown, Macau began a slow but steady recovery. However, the companies that have benefited most from the return of tourists and VIP players were MGM’s rivals Las Vegas Sands Corp. and Wynn Resorts Ltd., who managed to attract more customers with newer venues in the last two years.
The MGM boss said that not having a Cotai product hasn’t allowed MGM to benefit from the recovery of the VIP sector as much as their competitors. The new project was slated to open in 2016, but due to technology issues it had to be delayed.
Last month, the casino giant reported weaker-than-expected profit for the second quarter, with revenue in China amounting to $449 million. It lost market share in both the high-roller business and the mass market, according to Sanford C. Bernstein & Co.
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