MGM Says China Unit Would Run Thailand Bid

Posted on: August 1, 2024, 01:55h. 

Last updated on: August 1, 2024, 01:55h.

Should MGM Resorts International (NYSE: MGM) pursue a bid for a Thailand casino license, it’d run through its MGM China unit, according to CEO Bill Hornbukcle.

The chief executive office made that clear on the company’s second-quarter earnings conference call late Wednesday. MGM China, which is helmed by Pansy Ho, runs two integrated resorts in Macau — MGM Cotai and MGM Macau.

Next month, myself and Pansy Ho will be in Thailand looking at that opportunity. That is a venture that we’re interested in. And if we do, do that, we’ll do it through MGM China Holdings,” said Hornbuckle on the call.

No further mention of MGM’s potential Thailand ambitions was made on the call, but Hornbuckle’s comments arrived just a day after research firm CLSA published a report in which it estimated annual gross gaming revenue (GGR) for Thailand casinos — when the venues are fully ramped up — could reach as much as $15.1 billion.

MGM Has Well-Documented Interest in Thailand

MGM Resorts International has already clearly signaled interest in Thailand and Hornbuckle’s declaration that such an effort would run the operator’s China unit is the first inkling of the company’s approach to the Southeast Asian nation.

Hornbuckle telling analysts that MGM China would run the Thailand effort is confirmation of speculation that surfaced in June when Ho reportedly met with Thai tourism officials in an effort to promote travel to Macau among Thai tourists.

There are already significant ties between Macau and Thailand as the latter ranks among the top countries for inbound arrivals to the Asian casino hub.

MGM Eyeing UAE, Too

MGM’s international exposure consists of MGM China and an integrated resort in Osaka, which is expected to open in 2030, indicating that Thailand could add diversification to the operator’s portfolio. The United Arab Emirates (UAE) could be part of that equation as well.

Earlier this week, the General Commercial Gaming Regulatory Authority (GCGRA) approved a lottery in Abu Dhabi, sparking hope that broader gaming regulations could emerge there. That could position UAE as the next lucrative international casino frontier. MGM and a local partner are building a non-gaming hotel in Dubai, but there is space there for a casino and the company has previously said it could quickly pivot if gaming expansion takes hold there.

“With UAE, I think, the great news is now that they’ve announced the lottery, which is something that they said they would do. I’m encouraged that the rest of this will roll out as defined. Now timing is still unknown. It kind of keeps moving around,” said Hornbuckle on the call. “But I can’t imagine by end of this quarter or into early next, we won’t know with some specificity around what it means for Abu Dhabi and then potentially what the umbrella language is as it relates to all of the other Emirates.”