MGM welcomes Trade Minister’s visit to China
U.S. Commerce Secretary Gina Raimondo is about to embark on a four-day visit to China to discuss trade and tourism issues with officials from the world's second-largest economy. MGM Resorts International (NYSE: MGM ) applauded the move.
MGM controls approximately 56% of MGM China, which operates two integrated resorts in Macau: MGM Cotai and MGM Macau. The Las Vegas-based operator recently forecast it could spend up to $150 million this year to upgrade its two venues in Macau. This is part of a wider range of expenditures mandated by Macau law as a result of recently updated concessions.
MGM Resorts CEO Bill Hornback said in a statement: "MGM Resorts welcomes U.S. Commerce Secretary Gina Raimondo's visit to China and will continue to promote cooperation between the United States and China in areas of common importance. Engage in meaningful and productive dialogue." "Travel and tourism remain an important means of promoting bilateral cultural exchange and understanding, and we are pleased that Secretary Raimondo will meet with his Chinese counterparts to discuss these and other issues important to the U.S.-China relationship. Build consensus and identify the issues.”
Raimondo is the former governor of Rhode Island. President Biden appointed a Democrat to serve as Commerce secretary in early 2021.
The U.S. gaming industry has deep-rooted ties with China
Three of the six Macau franchises are Las Vegas operators: MGM, Las Vegas Sands (NYSE: LVS ) and Wynn Resorts (NASDAQ: :WYNN). The companies operate nine casino hotels in the Special Administrative Region (SAR).
Take MGM and Wynn, for example. These companies also have a significant presence on the Las Vegas Strip and have benefited from Chinese tourism to become the largest casino centers in the country. Although China relaxed its strict COVID-19 rules earlier this year, tourists from the country have yet to actually return to Sin City. It could also be due to growing tensions between the world's two largest economies, which is likely to concern Raimondo.
"Secretary Raimondo looks forward to having constructive discussions while in China on issues such as the U.S.-China trade relationship, challenges facing U.S. businesses, and potential areas for cooperation," the U.S. Commerce Department said in a statement.
President Biden visited China in November last year. That trip was followed by Secretary of State Antony Blinken and Treasury Secretary Janet Yellen traveling to China earlier this year.
Gaming industry prefers confident China relations
Macau's gross gaming revenue (GGR) surpassed that of Las Vegas and Nevada in the first six months of 2022, allowing Nevada to regain its title as the world's top casino hub.
This is a reminder that Las Vegas Sands, MGM and Wynn favor a more peaceful geopolitical relationship between China and the United States.
Wynn and Sands are the two non-tech companies in the United States that are most dependent on China. In recent years, some gaming industry executives have warned politicians about the risks of bellicose rhetoric against China.
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Source: www.casino.org
