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Royalty payments are fees subsidiaries pay to their parent companies for the use of brands, trademarks or management services. In Macau’s casino sector, these charges are deducted from operating earnings, reducing the share available to minority investors.
Morgan Stanley said MGM China’s royalty burden will rise to about 15 per cent of EBITDA in 2026, more than double previous levels and significantly higher than peers. The increase is expected to cut EBITDA by around 7 per cent and compress margins by 220 basis points year-on-year. Wynn Macau faces a similar drag, with royalties equal to about 14 per cent of EBITDA.
Read more in Macau News Agency
