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Japan – Japanese brokerage firm Nomura tips MGM for Japanese success

By - 20 November 2018

Japan-based brokerage firm is tipping MGM Resorts to be one of the main winners in the race for the first three Japanese Integrated Resort licences, claiming that its experience in developing successful working partnerships.

Companies bidding for one of the Japanese licences will need to secure a local partner for their bid.

Nomura analysts Harry Curtis, Daniel Adam and Brian Dobson said: “Given MGM Resorts’ willingness to partner and its successful track record partnering with third parties such as Pansy Ho in Macau and Dubai World at CityCenter, we believe MGM Resorts is one of the best-positioned, if not the best-positioned global gaming operator. Within six to 12 months, MGM Resorts should know which cities will have integrated resorts in Japan. The front runners are currently Osaka, Yokohama and Tokyo.”

MGM Resorts launched the US$9bn CityCenter Las Vegas in collaboration with the Dubai World group, a holding company controlled by the government of Dubai. In Macau, its MGM China began as a 50-50 JVC with Pansy Ho, who is still a significant shareholder.

The analysts also tipped MGM China to increase its slice of the Macau gaming pie over the next year.MGM opened its second Macau casino, MGM Cotai, on February 13.

The Nomura analysts said: “Investors should expect MGM Cotai’s ramp to be gradual through 2020. However, two new junkets opening in the next few weeks and the expected opening of the Mansion by Chinese New Year should help MGM Resorts International be a share gainer in a declining Macau market next year.”

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