SL is becoming to India what Macau is to China: Melco

Melco Chairman and CEO Lawrence Ho this week said he saw Sri Lanka becoming to India what Macau is to China by tapping into its enormous population base and growing economy.
As reported by Inside Asian Gaming (IAG), Ho noted that having looked at the Indian gaming market, there is not much to come of it for the next decade or so. 
“… and with the rising Indian economy and the wealth creation, Sri Lanka is the closest gaming jurisdiction to India,” Ho explained while providing some further insight into the deal during the company’s 1Q24 earnings call.
Melco Executive Vice President and CFO Geoff Davis added that India is definitely the most interesting feeder market and there is “very significant potential” there. 
“There is some level of domestic spending as well but our goal will be to address those feeder markets in India and more broadly in the region.
We think the market potential there significantly exceeds where we are today with the existing operators in the market, so [we’re targeting] a combination of local and domestic but very heavily skewed towards international when we think about where the growth can come from going forward,” he said, as stated in IAG.

Davis said he expects international play to ultimately comprise two-thirds of the company’s Sri Lankan revenues, with gross gaming revenue (GGR) “comfortably” in the US $ 200 million to US $ 250 million” range annually.
“We are, along with [local partner] John Keells, raising the bar significantly to a world-class standard with tis integrated resort and the casino that we’re fitting out. And while I think it’s a little too early to provide specific returns, we’re anticipating returns that are very attractive, very shareholder friendly, that will drive shareholder value and probably returns that would be difficult to attain in most mature markets.
So, we’re very pleased with the opportunity there. I think it’s a great way to tap into a market with tremendous potential in a capital light way,” said David.