The Melco Crown Entertainment group is set to open Studio City in Macau by October 27th, which is only weeks away. To improve financial performance as well as overall operations of the casino resort, which had a $3.2 billion price tag. The group has considered setting a $1 billion deal with hedge funds to do so. According to local media reports, the goal for the billion dollar deal would be to help the facility due to the fact that they are only being allowed to provide a certain number of gaming tables, less than expected.
Crown Resorts, an operator in Australia, and Melco International Development, a gaming company of Hong Kong, came together to create Melco Crown Entertainment. The Crown actually has a stake in the joint venture of 34%. Studio City must now wait for approval for their gaming tables, needing to know the number allowed by the government.
The casino first believed they would be given approval for 400 gaming tables. However, officials later stated that they would most likely only be given the go-ahead to operate 150. The final decision in this matter should take place this month, which the casino set to open in 25 days. With the $1.4 billion loan covering Studio City, the venue will have to have a minimum of 400 tables for gaming. The Melco Crown, which has a 60% stake in Studio City, may choose to move tables from other properties based in Macau. If they choose to do so, they would need to reduce their share of proceeds that are generated.
Experts in the gambling industry believe that Studio City will eventually be allowed to offer more than the small 150 set amount as the venue does have more attractions of the non-gambling variety. The government of Macau want resorts and other businesses to begin to focus on other areas as the casino industry has been struggling as of late. Operators have been encouraged to introduce other features that will attraction tourists from across the globe.