MGM China Holdings is exploring an expansion of its Macau resort, aiming to diversify beyond its casino offerings, reported Bloomberg, citing sources.
The proposed development would include a new wellness-themed building in Cotai, Macau, featuring additional hotel rooms and a range of wellness services such as spas and health treatments.
Although the plans are in the preliminary stages and subject to change, the expansion reflects MGM's strategy to attract a broader customer base, particularly the "premium mass" segment.
The company, which currently has around 2,000 rooms in Macau, the smallest among the city's six casino operators, is in discussions with consultants and designers for the project.
The expansion is part of MGM's efforts to increase its non-gaming attractions and draw mass-market tourists.
These visitors, known for their substantial spending, are becoming increasingly important as China's crackdown on junkets, who are agents that helped bring casinos bring high-end customers, has diminished the VIP segment's dominance in Macau's gaming industry.
An MGM China spokesperson declined to comment on the specifics.
The company is also set to launch a new art museum and a wellness centre at another Macau resort later this year. These facilities will offer traditional Chinese medicine regimens, further indicating MGM's commitment to enhancing its non-gaming amenities.
The shift in focus towards mass-market customers is not unique to MGM.
Operators such as Sands China and Melco International Development have implemented various incentives, such as complimentary hotel stays and dining, to attract these visitors.
MGM's own market share of gaming revenue in Macau increased from ten percent in 2019 to seventeen percent in the first quarter of 2024, aided by an expansion of gaming tables and technological advancements that improve table management and identify potential high spenders.
In addition to infrastructure developments, MGM has engaged in aggressive promotions to entice customers, offering free treats such as Haagen-Dazs ice cream and bubble tea to gaming area visitors. However, following a government advisory statement, most casinos, including MGM, have recently limited free offerings to players, a move that has impacted the competitive landscape among Macau's casinos.
