Morgan Stanley, one of the world’s leading financial services firms, has announced that Melco Resorts & Entertainment will be taking a significant cut of the earnings generated by their new casino venture in Sri Lanka. According to a report by Inside Asian Gaming (IAG), Melco is set to pocket a staggering 30% of the earnings before interest, taxes, depreciation, and amortization (EBITDA) from the project.
The new casino venture in Sri Lanka is a major development for Melco, which already operates some of the most successful and luxurious casinos in Macau and the Philippines. The company has been looking to expand its footprint in Asia and sees Sri Lanka as a promising market with a growing tourism industry.
The agreement between Morgan Stanley and Melco is a bold move that highlights the confidence both parties have in the potential success of the new casino venture. While it is not uncommon for companies to enter into profit-sharing agreements in the gaming industry, a 30% cut of the EBITDA is considered to be quite substantial and demonstrates the level of trust and partnership between the two companies.
The decision to partner with Melco is also significant for Morgan Stanley, as it represents a major step forward in their efforts to diversify their portfolio and expand into new markets. The financial services firm has been looking to capitalize on the growing gaming industry in Asia, and the partnership with Melco is seen as a strategic move that will help them achieve their goals.
In addition to the profit-sharing agreement, Melco is also set to play a key role in the development and management of the new casino in Sri Lanka. The company is known for its expertise in creating world-class gaming and entertainment experiences, and their involvement is expected to bring a high level of quality and sophistication to the project.
Overall, the news of Melco’s 30% cut of the EBITDA from the new casino venture in Sri Lanka is a significant development in the gaming industry and is likely to have a positive impact on both companies involved. With their combined expertise and resources, Morgan Stanley and Melco are well-positioned to make the project a success and capitalize on the growing demand for luxury gaming experiences in Asia.
