MGM to double tables for high rollers - The Standard - 7th August 2008

MGM Mirage, the world's second-largest casino company, plans to almost double gaming tables for high rollers at its Macau casino by year-end to tap the growing number of gamblers who spend more than US$124,000 (HK$967,200) a visit.

MGM Grand Macau, a venture between the Las Vegas-based company and billionaire Stanley Ho Hung-sun's daughter Pansy Ho Chiu- king, will increase its VIP tables by 70 to 150, chief executive officer Terrence Lanni said on a conference call yesterday.

Macau earned almost 70 percent of gaming revenue from VIP gamblers, defined as those who spend more than 1 million Macau patacas (about HK$970,000) every trip. That's higher than the 67 percent share in 2006, even as the city's government sought to slow growth in the number of high rollers coming to the only place in China where casinos are legal.

"We have determined it would be important to add more VIP tables," Lanni said. "On balance, we're not pleased with the past performance of our property in Macau, but we believe that we are taking the necessary steps."

The casino has 366 gaming tables, and Lanni said it will add about 22 VIP tables this month.

MGM Macau, which opened in December 2007, had a quarterly operating loss of US$5 million on earnings before interest, tax, depreciation and amortization of US$23 million.

The move to bring in more VIP gamblers, partly through junket operators, helped raise MGM Macau's market share to 9.5 percent in July from 8 percent the previous month, Lanni said.

"Since we have incorporated MGM Mirage marketing in June this year, we have doubled our VIP in-house business and we think that can continue to grow," he said. BLOOMBERG

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