MGM Resorts International has secured a new long-term branding agreement with MGM China, locking in brand rights through 2032 and potentially extending them to 2045—a move that underscores MGM China’s post-pandemic recovery and rising market share in Macau. The updated deal raises licensing fees, removes recurring renegotiations and formalises MGM’s brand role as a core asset in Macau’s competitive gaming market.
What Was Announced—and Why It Matters
MGM Resorts International has entered into a new Long Term Branding Agreement with MGM China Holdings Limited, effective January 1, 2026. The agreement replaces the previous short-term structure and aligns the use of the MGM brand with the current Macau gaming concession period.
The deal matters for two reasons:
- It secures MGM China’s right to use the MGM brand for the duration of its concession and beyond
- It formalises brand economics at a time when MGM China’s market share and profitability have significantly strengthened since the pandemic
For investors, the agreement reduces uncertainty around one of MGM China’s most important intangible assets after the gaming concession itself.
Key Terms of the New Branding Agreement
Duration and Extension Mechanics
The agreement runs through the end of MGM China’s current concession in 2032. If a new concession is granted, the branding term will automatically extend to the earlier of:
- The expiration of the new concession, or
- December 31, 2045
This structure removes the need for renegotiation every three years, a feature of the previous arrangement.
Why the Long-Term Structure Matters
- Enhances long-term planning certainty
- Protects shareholder value by stabilising brand access
- Aligns brand usage with concession timelines
MGM China’s Post-Pandemic Market Gains
The agreement reflects MGM China’s stronger position in Macau’s gaming market since borders reopened.
Market Share Growth
- Pre-pandemic market share: ~9%
- Year-to-date as of September 30, 2025: ~16%
That near-doubling of market share has been accompanied by improved profitability, reinforcing the commercial value of the MGM brand within the region.
The updated agreement effectively recognises the brand’s contribution to MGM China’s operational performance.
Updated Licensing Fee Structure
Higher Monthly License Fee
Under the new terms, the monthly brand license fee increases from 1.75% to 3.5% of adjusted consolidated net monthly revenues, calculated under IFRS standards.
This reflects both:
- MGM China’s stronger earnings profile, and
- The long-term nature of the agreement
Fee Cap and Regulatory Oversight
In line with Hong Kong Stock Exchange requirements, the license fee will be subject to an annual cap, determined by several variables, including:
- MGM China’s business volumes
- Other performance-linked metrics
This ensures fee levels remain proportionate and transparent.
How the Fees Are Distributed
As part of the agreement:
- Approximately 66.6% of the license fee will be paid to MGM Resorts International
This provides MGM Resorts with what it describes as fair compensation for the ongoing use of its global brand, while allowing MGM China to retain long-term brand stability.
Strategic Implications for Both Companies
For MGM China
- Secures brand continuity through and potentially beyond the current concession
- Eliminates repeated renegotiation risk
- Strengthens investor confidence in long-term operations
For MGM Resorts International
- Locks in predictable, higher-value brand revenue
- Aligns compensation with MGM China’s recovery and growth
- Reinforces brand positioning in Asia’s most competitive gaming market
Broader Context: Branding and Macau’s Concession Era
Since Macau’s concession renewals, operators have increasingly focused on longer-term certainty—not only for gaming rights but also for intellectual property, branding and non-gaming investment strategies.
This agreement fits that pattern, signalling how global operators are tightening governance and revenue structures as the market stabilises after years of disruption.
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- MGM Grand Sanya
- Bellagio by MGM Shanghai
- MGM Shanghai West Bund
- MGM Macau
- MGM Cotai
- MGM Shenzhen
- MGM Reserve Zhuhai
- MGM Reserve Qingdao
At a Glance
- Companies: MGM Resorts International, MGM China Holdings
- Effective date: January 1, 2026
- Base term: Through 2032 concession
- Extension: Up to December 31, 2045 if a new concession is granted
- License fee: Increased from 1.75% to 3.5% of net monthly revenues
- Fee share to MGM Resorts: ~66.6%
- Market share growth: ~9% pre-pandemic to ~16% in 2025
Bottom line: The new branding agreement formalises MGM China’s reliance on the MGM brand while locking in long-term economic value for MGM Resorts—bringing stability, visibility and alignment as Macau’s gaming market enters its next phase.
