Macau set to unveil casino tender winners
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The government of the Macau Special Administrative Region (SAR) will reportedly reveal the six concessionaires granted casino license renewals between now and mid-December this year. The licenses will allow the gaming venues to operate in the region for the next 10 years legally.
A Macau-based public broadcast media outlet known as TDM Radio broke the news on Wednesday. The platform regularly provides content in the official language of the SAR, Mandarin, and Portuguese.
Per TDM Radio, Macau’s local government was planning to announce six out of the seven casino applicants in its casino bidding term. The selected organizations will be a part of the SAR’s next gaming industry.
Macau’s current six casino operators will have their licenses expire by the end of 2022. The new licenses will be effective from January 1, 2023, till December 31, 2023. The operators in the SAR include MGM Resorts, Las Vegas Sands, Wynn Resorts, Galaxy Entertainment, Melco Resorts, and SJM Resorts.
Due to their long-running history as casino operators in Macau, the odds are in the six concessionaires’ favor. The new addition, Malaysia gaming giant Genting Group, however made an unexpected bid at the last minute, so there is an element of uncertainty in the outcome of the proceedings.
Macau’s government will likely benefit from the seventh new bidder because the six older concessionaires will be more alert than in previous years. They will have to convince the region’s officials why keeping things as they currently are, would benefit Macau more than if the new business is brought in.
In an earlier report, it was revealed that the SAR’s six licensed casinos had agreed to turn in a total of MOP100 billion (US$12.4bn) from their resorts to the development of amenities and attractions that were not related to gaming.
TDM Radio’s recent report revealed that the six casino companies would pay even more, per the request of Macau’s government after Genting Group made its bid in September. The companies may now have to invest approximately MOP160 billion (US$20bn) in the region after getting their licenses in 2023.
Out of the combined amount, a higher investment number will likely be placed on Galaxy Entertainment and Las Vegas Sands because they are the highest earners in terms of yearly revenue.
The two companies may need to turn in around MOP50 billion (US$6.2bn) each to the nongaming sector of Macau. The rest of the gaming establishments will reportedly invest MOP15 billion (US$1.9bn) each to make up the amount.
The requirements for the investments will be decided on as soon as the SAR selects the six gaming companies it wants to continue running for the next ten years. The previous terms will be announced, and contracts signed before the new year as soon as the provincial winners are made known.
TDM Radio claimed the announcement could be made within 15 days, meaning the news may come before December 9.
Macau has already begun informing the concessionaires what non-gaming ventures needed their future investments. The resorts were previously asked to construct their pitches for the license renewal to be focused on how the SAR could increase tourism in the region.
They were also asked to emphasize how Macau could successfully host cultural events to show the SAR’s blossoming relationship with mainland China. The region revealed that it was not opposed to the ideas of an art museum, maritime excursions, outdoor music and theater venue, theme parks, and even more conventions and meeting spaces.