MGM Resorts CEO disapproves Macau’s gaming zone strategy

MGM Resorts CEO disapproves Macau’s gaming zone strategy

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MGM Resorts CEO disapproves Macau’s gaming zone strategy

MGM Resorts CEO criticizes Macau’s attempt at foreigner-only gaming zones, citing failure to attract international gamblers.

The government of Macau supported the idea in December 2022 as part of a larger effort to boost the number of international visitors to the gambling hub.

The Ineffective Experiment

Hornbuckle said that the experiment was a failure. In an effort to modernize its gaming laws and increase international tourists, Macau had its first casino license retendering process in twenty years, which included the introduction of the zoning system. In exchange for drawing a certain number of international guests, operators were given the option to waive up to five percent of the forty percent tax that the government charges on gross gaming profits.

Foreign guests were free to bet on the main gaming floor if they so desired; the foreigner-only areas were not required. In the end, this strategy failed to gain traction since tourists disliked being separated and told where to go.

An Alternative Method: RFID Technology

Radio-frequency identification (RFID) chip technology was implemented by MGM Resorts at its Macau locations as a solution to the difficulties caused by the foreigner-only zones. Without the requirement for segregation, this technology makes it possible to trace the chips of foreign participants. Other Macau operators, including as Galaxy Entertainment and Melco Resorts & Entertainment, have also embraced this method.

The Drive for Diversification in Macau

China’s government has long pushed Macau to diversify its tourism industry by drawing more tourists from outside the country and increasing non-gambling attractions. Operators were obliged to contribute billions of dollars to this endeavor in order to receive new licenses.

Looking Forward

Even with the loss of the casino zones exclusive to foreigners, MGM Resorts and other regional operators continue to place a high priority on Macau. The industry’s dedication to adjusting to the shifting demands of the market and guaranteeing a great experience for every visitor is demonstrated by the usage of RFID technology.

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