Details on the share of Sri Lanka's casino venture revenue announced by Melco Resorts & Entertainment Inc in April were aired by banking group Morgan Stanley following a meeting with management of Melco Resorts' partner John Kills Holdings Inc (pictured rendering of the artist).

Melco Resorts has already stated that it will spend $125 million on contributions to the resort and the casino will open in mid-2025.

The company called it "Sri Lanka, the City of Dreams," reflecting the resort brands it already uses in the Macau, Philippines and Cyprus markets.

The casino company will "start to have gaming space this year" in its new plan in Sri Lanka's capital Colombo, Morgan Stanley said in a note on Monday.

"We have an independent 20-year gaming license in Sri Lanka," analysts Praveen Choudhary and Gareth Leung said.

Melco Resorts will "pay John Kills 50% to 55% of EBITDA, then earn pre-interest, taxable, depreciated and amortised (EBITDA) income tax of 30% to 40% on the remainder," they added.

Melco Resorts is a Nüwa accommodation brand that also receives maintenance fees for 113 hotel rooms. Melco Resorts is already using the brand in the Macau market in City of Dreams and City of Dreams Manila in the Philippine capital.

For City of Dreams Manila as a whole, "Melco pays local partners/owners approximately 38% of EBITDA," a note from Morgan Stanley reads.