Six major concessions on the line
The government of Macau has said little to date about the expiration and renewal of the city’s gaming concessions, which will start in 2020 and continue until 2022.
“Before we announce the new rules, we need to think about the appropriate time to do so, in order to guarantee the sustainable development of the gaming sector,” said Secretary for Economy and Finance Lionel Leong Vai Tac.
“We can’t forget that the gaming sector is predominant in Macau’s economy, and to guarantee its sustainable development we need to pay close attention to international competition,” Leong added.
According to Macau gaming law, it’s within the government’s power to renew the existing contracts for up to five years if it chooses. After that, a new concession would have to be granted via public tender, reported GGRAsia.
Macau Business reports that local junket operatorSuncity Group is positioning itself as a potential concessionaire if additional Macau concessions are granted in the future. It would join a platinum list that now includes the Las Vegas Sands Corp., Wynn Resorts, MGM Resorts International, SJM Holdings Ltd., Melco Resorts & Entertainment, and Galaxy Entertainment Group.
Meanwhile, the city continues to expand its nongaming economy. In Macau’s Five-Year Development Plan, which covers the years between 2016 and 2020, it was mandated that nongaming revenues in the casino industry comprise at least 9 percent of all revenues generated by the end of the period. That target was reached in 2015, five full years ahead of the deadline; in 2016, nongaming accounted for about 10.7 percent of the casino sector’s total revenues, Leong said.
Research firm Sanford C. Bernstein said gaming gross revenue in November should rise between 18 percent and 19 percent year-on-year. GGR estimates range from MOP22.2 billion (US$2.76 billion) and MOP22.3 billion.
Bernstein ranked Melco and Wynn as outperforming the market; SJM underperforming; and Galaxy, MGM and Sands at market perform.
In related news, the Macau Gaming Inspection and Coordination Bureau released a statement about the pending implementation of facial recognition technology in the city’s casinos, a measure that could guard against money laundering and graft as well as possible crime and violence.
“We will be monitoring the security enhancement measures taken by the concessionaires and the implementation of the crisis communication mechanism, thus ensuring the reinforcement of the security measures of all casinos in the Macau SAR,” the statement said.
