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Melco now planning to include gaming space in Studio City Phase 2

Ben Blaschke by Ben Blaschke
Wed 20 Feb 2019 at 17:21
Studio City Exterior

Studio City

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Melco Resorts and Entertainment has changed its tune on the inclusion of gaming in Studio City Phase 2, revealing that new gaming space is now planned as part of the upcoming expansion of the Macau integrated resort.

The addition of gaming was mentioned in passing by Lawrence Ho during Wednesday’s 4Q18 earnings call, with the Melco Chairman and CEO stating that “the further expansion of Studio City is expected to have two hotel towers, a water park, a cineplex and additional gaming space.”

Ho had previously claimed that Phase 2 would be completely non-gaming, telling media at the launch of Morpheus at City of Dreams last June that “our gaming area in Phase 1 is enough. We can add slot machines if we want but in Phase 2 the business model needs to be a bit different. We can already accommodate the gaming needs in Phase 1.

“Our company all along has attached great importance to non-gaming amenities as evidenced by Morpheus, so Phase 2 will really place the focus on other types of entertainment. Phase 2 will be about how we can complement Phase 1.”

Although Ho didn’t elaborate on the reasons behind his change of heart this week, it is likely related to the recent announcement that Melco would stop offering VIP gaming at Studio City from January 2020. The property’s 46 VIP tables are expected to be moved to flagship Macau IR City of Dreams instead.

“Those tables will revert back in January of next year so at that time we’ll assess the relative performance across the Melco properties and make a decision about optimization,” Ho explained on Wednesday.

“That’s what the decision was all about on the VIP tables. It’s just optimizing performance across the Melco portfolio, but that’s a decision that we will make closer to the time when those tables revert back.”

 

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Ben Blaschke

Ben Blaschke

A former sports journalist in Sydney, Australia, Ben has been Managing Editor of Inside Asian Gaming since early 2016. He played a leading role in developing and launching IAG Breakfast Briefing in April 2017 and oversees as well as being a key contributor to all of IAG’s editorial pursuits.

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