Melco Resorts & Entertainment has announced a 12-month extension to VIP rolling chip operations at Macau integrated resort Studio City, despite confirming the property is no longer working with junkets. It is the third time Studio City has chosen to extend its VIP program after revealing in early 2019 plans to cease VIP play.
According to details contained in a business update filed by Melco on Tuesday, VIP rolling chip operations were extended in December for a further 12 months until 31 December 2022, subject to early termination with 30 days’ prior notice by either the Melco group or by subsidiary Melco Resorts (Macau) Limited.
However, Melco also said it had “ceased all gaming promoters arrangements at the Studio City casino” in December following the arrest and detainment of Suncity CEO Alvin Chau for alleged criminal association, illegal gambling and money laundering. Suncity, by far the largest junket in Asia with almost 50% market share, subsequently ceased its junket business and closed down all VIP rooms.
Melco is the second company in a matter of days to confirm such actions, with Las Vegas Sands revealing it had terminated agreements with its “three primary gaming promoters” in December.
The business update formed part of a series of announcements by Melco and Studio City on Tuesday around new fundraising initiatives to complete development of Studio City Phase 2, including an international offering of senior secured notes and US$300 million in subscription agreements with existing institutional holders.
The company also revealed that it has been able to reduce the project budget from US$1.3 billion to around US$1.2 billion.
Due to open in December 2022, Studio City Phase 2 will add around 250,000 square meters in total gross floor area including an additional 2,300 square meters of gaming space, 21,000 square meters of retail, a children’s play zone for families and a new food street offering a selection of cuisines from Asia. It will also offer one of Asia’s largest indoor and outdoor water parks, a six-screen Cineplex comprising two regular houses and four VIP suites, as well as a state-of-the-art MICE space.
