The Macau government announced last Saturday who will be the six casino operators that will receive licenses to operate in the gaming center from January.
Malay operator sportsmanship The three Las Vegas-based companies received a temporary permit to continue operating in the Chinese special administrative region for the next 10 years, but were unable to obtain a renewal position.
Authorities in Macau said that for licenses to be issued, consideration is given to ensuring the inclusion of local employment, developing foreign tourism markets and executing related non-game projects. Reuters.
This long-awaited announcement is a sign of stability and continuity for operators who have invested more than $50 billion in the Macau gaming hub over the past 20 years.
Although Genting Malaysia was seen as a suitable candidate to obtain a license in Macau due to its strong history in non-gaming subjects and its mass-market appeal (in line with Beijing criteria, which insists that Macau’s diversity stays away from gambling and attracts foreign tourists), The government decided to issue new permits to operators already established in the city.
If any of the licensees had lost their license, they would have had to return the casino domain to the Government free of charge at the end of the year.As the gaming industry represents 80% to 90% of total revenue, it will make it financially unfeasible to operate the remaining facilities.
China Sands, Wynn Macau, Galaxy Entertainment, MGM Chinese, Melco resortsY SJM HoldingIt has been operating in the special administrative region of China since 2002. Their concessions expire at the end of this year, and the companies have pledged to cooperate in diversifying tourism by investing in non-gambling projects such as parks, attractions and music venues, in order to maintain their licenses. .
“We are connected to Macau and its development as a leading Asian tourist destination,” he said. Lawrence Ho, President and CEO of Melcothis is a statement.
Over the years these companies have invested billions of dollars in the only region in China where gambling is legal. Despite facing severe financial pressures due to the COVID-19 pandemic, The largest operators on the scene hope that the region will eventually return to pre-pandemic times.
Macau Minister of Administration and Justice André Cheong Weng Chon reported that the government will start preparing the contracts with the concessionaires, which are expected to be signed, next month. Las Vegas Review Magazine.
“The six companies that have temporarily secured their licenses will develop Macao’s gaming industries as well as non-gaming industries.” Cheong claimed. “They have all applied to the government with future investment plans, but no further details can be disclosed at this stage.”
“The government has chosen these six companies in accordance with the law, and the tender commission will choose it according to the law. focused on tenderers’ social responsibility plansand this condition was accepted by the government,” Cheong added.
Although the addition of Genting to the list of candidates raises some doubts that any of the existing companies could be sacked, Sands CEO Rob GoldsteinNoting that the company’s commitment to Macau “never waned”, he said the company is honored to continue the partnership it started with the city 20 years ago.
“We will remain committed to our strategy of continued investment in Macau, its economy, people and community over the next decade and beyond,” Goldstein added.As the Review-Journal reports. “The future of Macau as an international tourism destination remains bright and we look forward to continuing to play our leadership role to help it reach its full potential.”
Macau adheres to China’s strict zero-tolerance policy for COVID-19closing borders and casinos when an epidemic breaks out. This policy has kept the game’s visits and revenue below historic levels over the past two years. Last year revenue was $10.8 billion, down 75% from a record $45 billion in 2013.
“Many investors, especially long-term ones, have largely stayed away from the industry,” DS Kim said. An industry-wide analyst for JPMorgan. “But that’s great news,” he added. Finance Times.
#Macau #operators #renewed #licenses #years