Macau’s Studio City plans gambling rooms
Melco Crown Entertainment’s most expensive resort is set to open its first gambling rooms targeting high spenders from mainland China, switching gears from an earlier strategy that focused on recreational gamblers as it looks to reverse two years of slumping profit in Macau, Bloomberg reported.
Studio City, controlled by billionaire Lawrence Ho, is planning three VIP rooms as early as this quarter, according to people familiar with the matter.
Suncity Group and Tak Chun Group, which bring in gamblers from mainland China and loan them money to gamble with, are among gaming promoters that will operate these rooms, said the people, who asked not to be identified because the plans aren’t yet public.
The rooms are aimed to help offset last year’s 83 percent drop in net income at the casino company. Melco, which operates VIP rooms at its City of Dreams and Altira Macau casinos, in May reported first-quarter revenue that missed analysts’ estimates, and Australian billionaire James Packer’s Crown Resorts cut its stake in Melco on the same day.