It’s almost the end of the line for horse racing in Macau.
Last week, Secretary for Administration and Justice Cheong Weng-chon said the government will terminate its concession contract with the Macau Horse Racing Co., operator of the Macau Jockey Club (MJC), effective April 1.
In 2018, the club won a new 24-year operating concession, with the condition that it upgrade and enhance the club venue to the tune of US$186.2 million and also increase non-gaming facilities.
But revenues continued to falter, and club owners were unable to complete most of the planned improvements. In December, Macau’s Gaming Inspection and Coordination Bureau (DICJ) reported that third-quarter betting turnover at the club was down 63 percent compared to the same period in 2019, with a 64 percent drop in gaming revenue to just MOP$10 million (US$1.241 million).
With mounting deficits, the club proposed cutting purses, prompting a strike threat from jockeys and trainers. The proposal was dropped, and according to Cheong, the company then asked for a termination of its contract. He noted a “decline in popularity” of the sport in Macau.
Representatives of the club agreed, saying losses of “over MOP2.5 billion” (US$310.3 million) made it “increasingly difficult” to keep going.
Company directors Rui Cunha and Kong Ieong acknowledged that there has been “limited room for development and growth of the horse racing industry in Macau over the years, and with the adverse effect brought about by the pandemic over these last three years, it has become increasingly difficult to sustain the operations.”
They called the request for termination “a difficult decision.” The Macau Horse Race Co. will have one year to relocate its horses, and the government will take over the land and facilities.
