“`html
MGM: Thailand appeal includes “cheap” development and labor costs, larger margins
Summary
MGM Resorts is considering the development of a large-scale integrated resort in Thailand, citing low construction and labour costs as major advantages. Bill Hornbuckle, President and CEO of MGM Resorts, highlighted that operational costs are significantly lower than those in the United States, presenting a lucrative market opportunity. However, he cautioned that legislative processes related to casino developments may be more complex and slow, drawing from experiences in Japan.
Hornbuckle expressed confidence that real legislation could emerge by early next year, thus paving the way for MGM to pursue a casino licence via its Macau subsidiary. Additionally, MGM is advancing its casino project in Japan, with construction slated to begin soon.
Key Points
- MGM’s potential development in Thailand benefits from inexpensive construction and operational costs, leading to larger profit margins.
- Bill Hornbuckle warned of possible delays in the legislative process based on past experiences in Japan.
- The cost of building in Thailand is approximately 35-40% compared to the United States, appealing to potential investors.
- MGM plans to secure a licence through its 56%-owned subsidiary in Macau, MGM China.
- The company is set to progress on its casino development in Osaka, Japan, with contracts being finalised soon.
Why should I read this?
This article is relevant for those interested in the evolving landscape of the gaming industry in Asia, particularly in Thailand and Japan. It outlines the economic advantages that may attract major players like MGM to participate in the burgeoning integrated resort market, providing insights into legislative frameworks and operational strategies that can impact future developments in the region.
“`