MGM Resorts International and MGM China Holdings Limited have entered into a new long‑term branding agreement that will take effect on January 1, 2026. The deal extends MGM China’s right to use the MGM name through the end of its 2032 concession and provides for an automatic extension if a further concession is granted or awarded, potentially extending the arrangement to December 31, 2045.
Under the new terms, MGM China will pay a monthly license fee equal to 3.5 % of its adjusted consolidated net monthly revenues—a 100 % increase from the previous 1.75 % rate. MGM Resorts will receive approximately 66.6 % of that fee. For example, based on MGM China’s 2024 net revenue of HK$31.4 billion, the average monthly revenue was about HK$2.62 billion, yielding a monthly fee of roughly HK$91.7 million and a share to MGM Resorts of about HK$61 million. The agreement also includes an annual cap on fees, calculated as a percentage of business volumes, to protect both parties from extreme revenue swings.
MGM China’s financial performance has been a key driver behind the higher fee. The company reported record net revenue of HK$31.4 billion in 2024 and record Q3 2025 net revenue of HK$8.5 billion. Market‑share data show a steady climb from 9 % pre‑pandemic to 15.8 % in 2024 and 15.5 % in Q3 2025, reaching roughly 16 % as of September 30, 2025. These gains reflect stronger visitor numbers, higher average betting per visitor, and a favorable mix of high‑margin casino and hotel operations.
Strategically, the agreement secures a recurring, performance‑linked revenue stream for MGM Resorts while eliminating the need for tri‑annual renegotiations. It also reinforces MGM Resorts’ international brand strategy, providing a model for future expansions in markets such as Japan and online gaming. The long‑term nature of the deal aligns with Macau’s concession renewal, which extends all operators through December 31, 2033, giving MGM China—and by extension MGM Resorts—a stable platform for growth.
Bill Hornbuckle, CEO and President of MGM Resorts, said the deal “strengthens our partnership with MGM China and positions us to capture the upside of Macau’s continued recovery.” CFO Jonathan Halkyard added that the agreement “supports our focus on premium, market‑leading integrated resort operations and provides a predictable, high‑margin revenue stream tied to a high‑performing asset.”
While the announcement did not trigger a specific market reaction, analysts noted the positive momentum in MGM Resorts’ stock, citing the strong performance of Macau operations and the new licensing arrangement as key factors behind the company’s robust outlook.
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