Macau extends MGM, SJM gambling licences to 2022
Each company has been required to pay licensing fees of US$24.7 million
During a press conference organized last Friday by the Office of the Secretary for Economy and Finance, Mr Leong Vai Tac, the Macau government announced the extension of the licenses of SJM and MGM to June 26, 2022, following requests from both operators.
In a decision long predicted by industry observers, the government made the decision to extend the licenses in order to assist its work relating to a new public tender process for Macau’s gaming concessions: “The extension granted to the two companies was also deemed helpful for the maintenance of social stability, particularly the stability of the job market,” Mr Leong said.
In return for the extension of their license, both SJM and MGM has been required to pay the government a one-off amount of MOP 200 million (US$24.7 million).
According to industry analysts Bernstein: “The extension of the SJM and MGM concessions is not unexpected in our view and this has been consensus thinking for some time.”
According to Union Gaming, however, it is still unclear how the government will tackle the rebidding process come 2022, adding that the next administration will likely be the one to tackle the license refreshment/rebid issue – perhaps even extending the expiry beyond 2022. Simply put, “We believe the extensions have more to do with making the ultimate task of the license rebid situation easier, while at the same time making sure the labor market remains stable.”
