A Macau lawmaker says the government’s gaming industry amendment bill will be complete before three gaming concessions and three sub-concessions expire on June 26.
Lawmakers will be busy in the next few months, said Chairman Andrew Chan Chak Mo of the legislative assembly’s 2nd Standing Committee. Chan said they must also draft applications for new concessions in the same timeframe.
Macau’s gaming industry includes three concessionaires (SJM, Galaxy and Wynn) and three subconcessionaires (Sands, Melco and MGM). The draft bill proposes that the city award up to six concessions, but put an end to subconcessions. That said, the government will “quite probably” extend the current framework for a while, said Chan.
According to the Macau Post Daily, committee members last week focused on the fate of so-called “satellite casinos,” run by the primary concession-holders. In order to remain viable, satellites would have to be located in real estate owned by the concessionaires. The draft bill would give them three years to comply with the new rule. Under the bill, ownership of all casino venues belongs to the government.
According to Chan, “Maybe the concessionaire and satellite casino owners have been in discussion for a long time and can wrap up the deal [of acquisition] in three days. Who knows?”
If not, he told reporters, given the “special circumstances,” the government should consider extending the concession contracts for another year.
The proposal has raised concerns about the impact on local employment if satellites are forced to close down.
Lawmaker Lei Leong Wong warned the government that they should prepare for the worst, because this matter concerns a workforce of at least 7,000 people. “Counting supporting staff [as well], the figure may reach 15,000,” the lawmaker said out, hinting that the government must handle the problem with extreme care.
In other changes, the license terms for new gaming concessions has been reduced by half, from 20 to 10 years, while the minimum capital required has been raised from MOP200 million (US$25 million) to MOP5 billion (US$621.5 million). The concessionaires will be subject to a three-year performance review to ensure they are adhering to the commitments made in the licensing process, while the government will need to be informed of capital distributions, reported Asia Gaming Brief.
In addition, a local managing director must hold a 15 percent stake in the operator, up from 10 percent under the current law. Chan added that legislators want details as to the scope of the management power of the administrator, as well as his or her nationality.
“There is also the question of nationality, whether or not dual nationality is allowed, since the role of administrator is intended for Macau permanent residents,” Chan said. “Since this director is so important, do we also need to know his academic qualifications, or if he is a patriot.”
The licenses of Wynn Macau, Sands China, MGM China, SJM Holdings, Galaxy Entertainment and Melco Resorts, are all due to run out in June. All are expected to apply for a license via a new tender process, but so far authorities have not revealed when a tender will be launched or whether the current concession contracts will be extended.
