Proposals provide a clear and timely roadmap ahead of the re-tendering process
As Macau’s casino operators show their approval of the government’s proposed changes to the gaming law, they add that proposals provide a clear and timely roadmap ahead of the re-tendering process.
Last week, the Macau SAR government outlined some of the changes to the proposed gaming law, with the main being the reduction down to 10 years for casino licences for a total of six concessionaires: and the end of the concessionaires casino satellite operations outside the main property.
In a statement, MGM China, said: “The bill presented today provides details over various key aspects of the overall administrative procedures and timetable, outlining a clear roadmap on the upcoming important milestone of retendering which is critical to maintain a healthy and sustainable development for the gaming industry in the future. At MGM China, we wish to express our sincere gratitude to the Macau SAR Government for providing us guidance and ample timing in assisting us with our preparation towards the tender submission.”
Melco Resorts & Entertainment thanked the government for taking on board the opinions of society and the gaming industry when compiling the new law: “Melco is fully confident in the development of the integrated tourism and leisure industry. The company is committed to participating in the public tender of the award of a gaming concession and will continue to promote economic diversification in Macau.”
SJM Resorts also praised the government for listening to feedback: “The bill has improved the relevant contents of the existing gaming law with details on the proposed amendments and clear guidelines for the benefit of a sustainable and healthy development of Macau’s gaming industry. SJM is getting prepared for the new tendering while awaiting the announcement of more details from the Government.”
As the local and longest operator in Macau, SJM added its full supports and coordinates with the Government in safeguarding the security of the Nation and Macau SAR, and in promoting the prosperity and stability of the city, further advancing the cause of “One Country, Two Systems” in Macau.”
The other operators, Sands China, Wynn Resorts, and Galaxy Entertainment Group, also rallied in their support for the Macau SAR Government, with the first saying:
“Sands China will fully cooperate with the SAR government to support the passage of the bill, thereby contributing to the healthy and sustainable development of Macao’s gaming industry.”
Dr. Lui Che Woo, Chairman of GEG, added: “We agree and fully support the goals of the SAR Government’s proposed legislation, which holds that national and Macau SAR security should be put as top priority when operating casinos and gaming-related activities, whereas Macau’s economic diversification and sustainable development should be promoted. We believe that having optimized laws and regulations in place will lay a solid foundation for the city’s steady development and propel the synergetic development of the gaming industry, leading to Macau’s overall economic resilience and diversity.”
Additionally, investors and analysts have welcomed the amendments to Macau’s gaming law, which proved to be far less draconian than feared for the six operators, but which appear to sound the death knell for satellite casinos.
Shares in all of the companies jumped on Friday, with Sands China and Melco Resorts & Entertainment leading the way, up 7 percent and 16.6 percent respectively. The other operators all showed gains of about 4 percent.
Ben Lee, Managing Partner, IGamiX Management and Consulting, said: “The new terms are much softer than most had expected. The dropping of the proposed gov rep and direct dividend control are positives. Going against our previously held beliefs that the new concession tender would be done and dusted by June, we now believe that the govt will likely grant a short 6 months extension to the end of the year due to a high level of interest by potential new applicants.”
