Brokerage Sanford C. Bernstein argued casino operator Melco Resorts and Entertainment should benefit from its parent company’s project in the city of Zhongshan (the artist’s rendering photo) near Macau, in Guangdong province in mainland China.
Hong Kong-listed Melco International Development Ltd announced on Wednesday that it will create an out-of-game complex, including a theme park, in Zhongshan. Melco International’s partner is Hong Kong-listed Agile Group Holdings Ltd, an investment holding company primarily involved in property development in mainland China.
Melco International is the parent of licensee Melco Resorts in Macau. Both companies are controlled by entrepreneur Lawrence Ho Yau Lung.
In an announcement on Wednesday, Melco International said it expects most of its plans, including theme parks, to be completed by 2025. Melco Group is expected to donate at least 1.85 billion yuan ($285.6 million) to the development and construction of the theme park.
“While Melco Resorts is not directly involved in this development, we are seeing some long-term impacts regarding Melco Resorts,” analysts Vitali Umanski, Louis Lee and Kelsey Zhu wrote in a note on Wednesday.
Analysts said Melco Group’s “commitment to develop non-gaming (which in this case is a theme park) in the wider Macau region will help determine its location regarding Macau gaming concessions.”
Zhongshan is part of China’s Guangdong-Hong Kong-Macao Taiwan regional initiative, a move by the national government to further integrate the economy and people of major population centers.
A recent research paper by two Macau gaming law experts said the Macau government could seek in-kind benefits other than licensing fees and taxes from Macau casino companies that now want to participate in a new open bidding process related to the 2022 expiration of six gaming licenses in the country. This could include proposals for investment in the Great Bay Area, the paper’s authors said.
“While the project will not start before 2025, once implemented, it can provide a joint marketing opportunity for the Melco Resort Casino property in Macau,” the Sanford Bernstein team said.
Analysts added that the Zhongshan project “could potentially also benefit Melco Resorts’ bid in Yokohama, as it highlights the Melco Group’s ability to make large non-game developments.” 카지노사이트 모음
Melco Resorts is one of two competitors leaning toward obtaining a casino complex in the process of Requesting Proposals (RFP) from the city of Yokohama, Japan.