MGM Cotai Resort is seen in Macao Feb 13, 2018. (VINCENT YU / AP)
MGM Resorts opened a lavish US$3.4 billion casino resort in Macao on Tuesday, just days ahead of the Lunar New Year holiday, hoping to ride a boom in business in the world’s biggest gaming hub.
The new resort, MGM Cotai, is its second in the enclave but the first on the Cotai Strip, an Asian version of the Las Vegas Strip
It's a high-stakes wager on the casino market's future in Macao, where gambling licenses expire in as little as two years.
CEO James Murren said the company was taking a "leap of faith" that the government will extend its license even though officials have revealed little about the process.
The new resort, MGM Cotai, is its second in the enclave but the first on the Cotai Strip, an Asian version of the Las Vegas Strip that's the epicenter for extravagant new casino expansion projects.
The doors open just in time for the busy weeklong Lunar New Year holiday beginning Friday.
The opening was delayed by damage from Typhoon Hato in August, which killed 10 people. Many of the atrium roof's triangular glass panels still had cracks caused by the storm's high winds but casino representatives said they were safe because only the outer of five glass layers was damaged.
Highlights include a US$13 million art collection including 28 Qing Dynasty carpets, an orb-shaped Swarovski crystal chandelier and haute couture dresses decorating the lobby. There are also luxury shops, celebrity chefs and theater shows, including one described as a "mind-bending and harmonious technological symphony." The atrium's sides are covered in LED screens showing digital art such as rice paddies at sunset or "green walls" growing endangered plant species.
James Murren, chairman and CEO of MGM Resorts International, speaks during an interview in Macao, Feb 13, 2018. (VINCENT YU / AP)
Licenses for the city's six casino operators are due to start expiring in 2020, with MGM's among the first. The government has released no information about the renewal process, the first since a gambling monopoly ended in 2002, allowing in foreign operators also including Las Vegas Sands and Wynn Resorts.
"I have no answers but I have a lot of trust" that the government will renew MGM's license, Murren said. He said he thinks officials will do so based on the company's track record of adding non-gambling attractions to help meet the government's goal of diversifying the economy.
"Sometimes you have to have a leap of faith," Murren said in an interview. "We feel we are the kind of company that the government would like to see here."
Macao Chief Executive Chui Sai-on has said mid-2018 would be an appropriate time to provide details.
Macao gambling revenues are on the upswing, rising 19 percent last year to US$34 billion after several years of declines.