Macau's Gambling Shift, The Mirage Sale, and Malaysia's Gambling Boost

Macau is undergoing a significant transformation as six casinos in the region have agreed to invest $15 billion over the next ten years, with a substantial portion of these funds allocated to non-gambling activities. This shift is part of new license agreements signed last month, which aim to diversify Macau's income sources and reduce its reliance on gambling.

The new direction for Macau's casinos is a clear pivot from the past and a necessary step towards a more sustainable future. The region has been heavily impacted by Covid-19, with travel restrictions, capacity limitations, and frequent lockdowns contributing to a decline in casino revenue. The new agreements come as Macau struggles to recover from the financial impact of the pandemic, with non-gaming expenses now exceeding gaming-related expenses by more than ten times.

In other news, MGM Resorts International has completed the sale of The Mirage, an iconic Las Vegas Strip resort, to Hard Rock International for nearly $1.1 billion. The deal includes plans to construct a guitar-shaped hotel tower on the site of the resort's iconic outdoor volcano attraction. Hard Rock also intends to extensively renovate the hotel, expand its casino floor, and enhance its convention and theatre offerings. The Mirage, opened by casino developer Steve Wynn in 1989, was the first modern mega-resort in Las Vegas and quickly became known for its volcano attraction and Siegfried & Roy performances.