MGM China secures long-term MGM brand amid higher fees

MGM Resorts International has confirmed a new long-term branding agreement with its Macau subsidiary MGM China Holdings Ltd that will take effect from January 1, 2026. Under the revised terms, MGM China will double the licensing fee it pays for use of the MGM brand, increasing the charge from 1.75 percent to 3.5 percent of adjusted consolidated net monthly revenues.

The agreement includes an annual cap determined by variables required under Hong Kong Stock Exchange rules, with business volumes being the most significant factor. Equity analysts at CBRE estimate that MGM China will pay approximately US$166 million in licensing fees in full-year 2026, compared with a capped maximum of US$188 million.

The new structure also alters how the licensing revenue is shared. MGM Resorts will retain 67 percent of the fee, while its long-standing Macau partner and MGM China chairperson Pansy Ho will receive the remaining balance. This represents a more favourable split for the US-based parent compared with the previous arrangement.

The branding agreement will run until 2032, coinciding with the end of MGM China’s current 10-year gaming concession that began in January 2023. MGM Resorts confirmed that if a further concession is granted, the branding deal would automatically extend until either the new concession expires or December 31, 2045, whichever comes first.

MGM China operates two major properties in Macau, MGM Cotai in the Cotai district and MGM Macau on the peninsula. MGM Resorts said the MGM brand has been a key driver of the operator’s post-pandemic recovery, noting that market share has risen from around 9 percent before COVID-19 to approximately 16 percent as of September 30, 2025.

The parent company said the agreement removes the need for periodic renegotiation and provides long-term brand security while ensuring fair compensation for the use of the MGM name.