MGM RESORTS ANNOUNCES MGM GRAND PARADISE AWARDED NEW 10 YEAR GAMING CONCESSION CONTRACT

Rhea-AI Summary

MGM Resorts International announced a new 10-year gaming concession contract awarded to MGM Grand Paradise, which is 56% owned by them. Over the next decade, MGM China will invest approximately $2 billion, with 50% allocated to capital expenditures and the other half to operating expenses. This investment aims to develop international tourist markets and diversify non-gaming projects, supporting future growth. MGM China will also increase its table games from 550 to 750, enhancing market share opportunities.

Positive

• Award of a new 10-year gaming concession contract.
• Investment of $2 billion over ten years to boost international tourism and diversify offerings.
• Increase of table games from 550 to 750 to enhance market share.

Negative

• None.

LAS VEGAS, Dec. 19, 2022 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) ("MGM Resorts" or the "Company") announced that MGM Grand Paradise the concession holder of MGM China Holdings Ltd. (2282 HK), which is 56% owned by MGM Resorts International, has been awarded a new 10-year gaming concession contract.  

As part of the agreement, MGM China will invest approximately $2 billion over the next ten years, approximately 50% of which is expected to be treated as capital expenditures and 50% as operating expense¹. Approximately 90% of this spend will be earmarked for the development of international tourist markets and non-gaming projects and programming to drive diversification to the region. MGM China will also receive an additional 200 table games raising its total table count to 750, which will support future market share growth opportunity for our business.

Bill Hornbuckle, Chief Executive Officer and President of MGM Resorts International, said, "On behalf of MGM Resorts International, I would like to express my heartfelt gratitude to the Macao SAR government for giving us support and opportunity on the new gaming concession. We always believe in the strong potential of Macau. As Macau is entering a new milestone, we will continue to share our international network, experience and resources with the Macau team. Under the leadership of Managing Director Pansy Ho, together with our remarkable management team, I am confident that MGM China will demonstrate further strength in the integrated tourism and leisure industry and continue to make contributions to Macau." 

For further information regarding MGM China please visit: en.mgmchinaholdings.com

¹ The allocation between capital expenditures and operating expense is based upon preliminary estimates and may change materially. Capital projects and expenses on which the allocation estimate was based are subject to review and approval, and therefore the Company cannot provide assurance that such projects or initiatives will be completed as currently projected or at all.

About MGM Resorts International
MGM Resorts International (NYSE: MGM) is an S&P 500® global entertainment company with national and international locations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. MGM Resorts creates immersive, iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 33 unique hotel and gaming destinations globally, including some of the most recognizable resort brands in the industry. The Company's 50/50 venture, BetMGM, LLC, offers U.S. sports betting and online gaming through market-leading brands, including BetMGM and partypoker, and the Company's subsidiary LeoVegas AB offers sports betting and online gaming through market-leading brands in several jurisdictions throughout Europe. The Company is currently pursuing targeted expansion in Asia through the integrated resort opportunity in Japan. Through its "Focused on What Matters: Embracing Humanity and Protecting the Planet" philosophy, MGM Resorts commits to creating a more sustainable future, while striving to make a bigger difference in the lives of its employees, guests, and in the communities where it operates. The global employees of MGM Resorts are proud of their company for being recognized as one of FORTUNE® Magazine's World's Most Admired

Companies®. For more information, please visit us at www.mgmresorts.com. Please also connect with us @MGMResortsIntl on Twitter as well as Facebook and Instagram.

Forward Looking Statements:
Statements in this release that are not historical facts are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, and involve risks and/or uncertainties, including those described in the Company's public filings with the Securities and Exchange Commission. Forward-looking statements can be identified by the use of forward-looking terminology such as "believes," "expects," "could," "may," "will," "should," "seeks," "likely," "intends," "plans," "pro forma," "projects," "estimates" or "anticipates" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. The Company has based forward-looking statements on management's current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, the Company's expectations regarding the amount and allocation of capital expenditures and operating expenses the Company expects to incur. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise, and the Company may not be able to realize them. The Company does not guarantee that the events described herein will happen as described (or that they will happen at all). These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include the continued impact of the COVID-19 pandemic on the Company's business, the effects of economic conditions and market conditions in the markets in which the Company operates and competition with other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, risks relating to international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions and additional risks and uncertainties described in the Company's Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports). In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.

MGM RESORTS CONTACTS

Investment Community:
ANDREW CHAPMAN, Director of Investor Relations 
(702) 693-8711, achapman@mgmresorts.com

News Media:
BRIAN AHERN, Executive Director of Communications media@mgmresorts.com

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SOURCE MGM Resorts International

FAQ

What is the significance of MGM Resorts' new gaming concession contract?

The new 10-year gaming concession allows MGM Resorts to enhance its operations in Macau, tapping into international tourism and diversifying its non-gaming projects.

How much is MGM Resorts investing in the new concession?

MGM Resorts plans to invest approximately $2 billion over the next decade.

What will the investment by MGM Resorts focus on?

The investment will focus on developing international tourist markets and non-gaming projects.

How many table games will MGM Resorts have after the new concession?

MGM Resorts will increase its total table games from 550 to 750.

When was the new concession contract awarded to MGM Resorts?

The new concession contract was announced on December 19, 2022.