The global casino industry continues to evolve rapidly, and VIPPH brings you an in-depth look at Melco Resorts & Entertainment Ltd’s latest strategic shift. The gaming giant has announced its intention to move towards an “asset-light” model, reshaping its approach to investments while ensuring long-term flexibility and sustainable growth. This decision particularly affects its role in the operation of the renowned City of Dreams Manila, one of the most successful integrated resorts in the Philippines.
According to Chairman and CEO Lawrence Ho, City of Dreams Manila delivered a strong fourth-quarter performance, showing steady growth in EBITDA and market share. Over the last decade, Melco has built a powerful brand in partnership with Premium Leisure and Amusement Inc, but Ho emphasized that the company is now seeking ways to reallocate resources, enhance financial stability, and capitalize on opportunities in emerging markets.
VIPPH Highlights: A Deeper Look at the Strategy
The decision to explore alternatives for City of Dreams Manila is aligned with Melco’s broader strategy of maximizing returns while reducing ownership risks. By shifting focus to management agreements and partnership-driven models, the company can maintain its influence in high-performing casinos without the heavy burden of direct ownership. This is a strategy that resonates with VIPPH readers who follow the business side of global gaming closely.
One example of this strategy is Melco’s involvement in the upcoming City of Dreams Sri Lanka. Instead of investing billions in construction, Melco is focusing on fitting out and managing the casino floor as well as the luxurious Nuwa-branded hotel segment. This approach requires a significantly smaller capital investment — approximately US$125 million — while providing strong exposure to a new and growing market.
VIPPH Reports: Macau and Beyond
While some investors expressed concern about Macau’s performance in early 2025, Lawrence Ho reassured stakeholders by highlighting that January was one of the strongest months in recent years. Property visitation levels not only matched but exceeded pre-pandemic benchmarks, and the company’s market share rose to 15.6% in December 2024. Furthermore, the popular show “The House of Dancing Water” will make its long-awaited return in May, a move expected to boost tourism and entertainment revenue further.
Melco is also upgrading its properties in Macau, including new renovations at City of Dreams and Studio City. The company plans to launch smart baccarat tables across all venues, a technology that will refine marketing, player analytics, and reinvestment strategies. Such innovation highlights how the company is adapting to new consumer demands while securing its long-term competitive advantage.
VIPPH Conclusion: What It Means for the Future
The shift to an asset-light model is more than just a financial decision — it’s a new vision for sustainable expansion. By concentrating on operational excellence and strategic partnerships, Melco Resorts is positioning itself to thrive in the next decade of global gaming.
For VIPPH readers, this transformation offers valuable insights into how major operators adapt to global challenges while continuing to deliver exciting experiences for players. As new markets emerge and technology reshapes the casino landscape, Melco’s asset-light strategy may become a benchmark for the entire industry.
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