On Tuesday, Melco announced the continuation of Studio City VIP operations for one year – an unexpected move after Melco announced one year prior that it would be discontinuing VIP operations at the Macau casino on January 15, 2020. The new agreement lasts until January 15, 2021 but is subject to termination by a 30-day notice, giving Melco more flexibility to redistribute to the stronger performing City of Dreams
Melco did not specify its reasoning on either today’s continuation notice or last year’s discontinuation notice.
“Melco will be rolling out new junket rooms and Premium Mass gaming areas at City of Dreams over the next few months, and we believe it is likely Melco redistributes Studio City’s VIP tables as new facilities are opened,” noted analyst Edward Engels with Macquarie Research.
