Melco aims to broaden its international casino presence through an asset-light business strategy
Melco Resorts & Entertainment Ltd. Expands into New Markets with Asset-Light Strategy
Melco Resorts & Entertainment Ltd., the company behind the popular City of Dreams casino in Macau, is looking to expand its commercial casinos beyond Macau using an asset-light strategy. This strategy primarily involves partnerships and licensing arrangements rather than heavy capital investments.
The key example of this strategy is the $1.2 billion City of Dreams Sri Lanka project, scheduled to open in the third quarter of 2025. This project represents a capital-light investment, where Melco will operate the casino inside an integrated resort developed by local partner John Keells Holdings (JKH). Melco has committed around $125 million to fit out and equip the casino, leveraging a 20-year gaming license granted to its Sri Lankan subsidiary.
Lawrence Ho, the CEO and founder of Melco Resorts & Entertainment Ltd., announced these plans in a statement. The location of the casino resort in Sri Lanka was initially not specified, but it is now known to be in Colombo.
Melco Resorts & Entertainment Ltd. is also considering partnering with local partners for other casino projects. These potential casino projects are estimated to be multi-billion-dollar ventures, similar to the project in Sri Lanka.
The asset-light strategy of Melco Resorts & Entertainment Ltd. allows the company to participate in new projects without committing significant capital. This strategy is designed to help the group capture growth opportunities in emerging markets.
The expansion plans of Melco Resorts & Entertainment Ltd., including the casino resort in Sri Lanka, were initially reported by Shirley Zhao of Bloomberg News. The announcement about the new casino resort in Sri Lanka was made by Lawrence Ho in a video interview with Bloomberg News.
In addition to the expansion plans in Sri Lanka, Melco is aligning its strategy with regulatory changes in Macau. Macau satellite casino reforms, effective January 2026, prohibit non-concessionaires from owning casinos directly, pushing operators like Melco to focus more on management roles and strategic partnerships instead of ownership-heavy models.
In summary, Melco’s asset-light expansion strategy beyond Macau emphasizes operating casinos within externally developed integrated resorts via long-term licenses, reducing heavy capital outlays and operational risks while maintaining brand presence and revenue streams. Sri Lanka’s City of Dreams project is the flagship example of this model in action.
- Melco Resorts & Entertainment Ltd., with its asset-light strategy, is venturing into the casino-and-gambling industry of emerging markets, such as casino projects in partnership with local partners, which are estimated to be multi-billion-dollar ventures.
- The company is also planning to leverage its asset-light strategy in the finance sector by operating casinos within integrated resorts developed by external partners, as demonstrated by the forthcoming City of Dreams casino in Colombo, Sri Lanka.
