United States-based casino group MGM Resorts International, majority owner of Macau gaming concessionaire MGM China Holdings Ltd, says it has a new “long-term branding agreement” with the latter that takes effect from January 1, 2026.
The new deal will double the percentage of MGM China’s adjusted consolidated net monthly revenues it must pay as a licensing fee to use the ‘MGM’ brand. The amount will go from 1.75 percent of such revenues to 3.5 percent.
That will nonetheless be subject to an annual cap “determined by certain variables, as required by the Hong Kong Stock Exchange,” where MGM China is listed, “the most significant being business volumes of MGM China”, said a Tuesday press release from the U.S.-based parent.
MGM Resorts will share part of the licence fee with Pansy Ho Chiu King, its main partner in the MGM China venture and the latter’s chairperson, added separate filings on Tuesday by MGM China.
CBRE Equity Research said in a Tuesday memo that “the annual fee is capped at US$188 million in full-year 2026, although we estimate the fee payable by MGM China will be around US$166 million in full-year 2026.”
Analysts John DeCree and Max Marsh added: “MGM [Resorts] will retain 67 percent of this fee going forward while its partner in Macau, Pansy Ho, will retain the balance. This compares favourably to the prior 50/50 split.”
MGM China runs the MGM Cotai casino resort (pictured) in the city’s Cotai district, and the MGM Macau property on the city’s peninsula.
The branding deal will run until 2032, the year that marks the end of MGM China’s current 10-year gaming concession that began on January 1, 2023.
A Tuesday press release from the parent stated that if a “further concession is granted or awarded” to MGM China, the term of the branding deal will be automatically extended until either “the expiration of a new concession or December 31, 2045”, whichever of those two events comes first.
MGM Resorts stated: “This secures an important right for MGM China as the MGM brand has served it well, which is reflected in the significant gains in market share and increased profitability since the end of the pandemic.”
The parent added without referring to the specific metric it was using: “Market share has nearly doubled from a pre-pandemic level of approximately 9 percent to a year-to-date September 30, 2025 share of approximately 16 percent.”
MGM Resorts further noted: “The new agreement eliminates the need for the parties to negotiate a new agreement every three years, which protects MGM China’s shareholders by securing its most important intangible asset after the concession itself and provides MGM Resorts with fair compensation for the use of its industry leading brand.”
On December 19, MGM China announced a rejig of senior management. Kenneth Feng – previously president and executive director – became chief executive, and Tian Han – who had been executive vice president of gaming operations and strategic marketing – replaced Hubert Wang as chief operating officer.
