Sands looks to add hotel rooms
With the gaming concessions of six major operators due to expire between 2020 and 2022, the chief executive of Hong Kong-listed Macau Legend Development Ltd. believes the market could easily welcome several more concessionaires.
“The market requires competition to progress,” said David Chow. “If the situation remains the same, where gaming concessionaires maintain their way of operation, any growth will only go to them.”
Speaking to reporters at the Chinese People’s Political Consultative Conference in Beijing, he added, “If the market is big enough, there is no problem for Macau to have two or even three more casino licenses.
“I believe Macau people should have more opportunities to take part in the gaming industry. I am not pressuring the government, but I think the opportunities should be provided.”
Chow pointed out that most of the current Big 6 concessionaires are not local. “Are there chances for local people to become casino operators in Macau?” he asked. Needless to say, Macau Legend would “fight” for a chance to win one of those additional licenses.
In the current landscape, the newly crowded Cotai district has seen its share of GGR grow from 45.5 percent in the first quarter of 2014 to 61.4 percent at the end of the fourth quarter 2017—a lift of 15.9 percentage points during the period.
According to GGRAsia, Cotai’s share of the luxury hotel room segment in Macau rose from 47.0 percent to 58.3 percent, from 12,800 rooms to 21,200 rooms.
Las Vegas Sands, 70 percent owner of Sands China Ltd., is looking to add even more rooms. “If the chairman were here, he would be talking about building a lot more in Macau,” said Daniel Briggs, the company’s senior vice president of investor relations, referring to Sands Chairman and CEO Sheldon Adelson.
“Macau is just getting started, and this business can be even bigger,” Briggs said. “But it is going to need more hotel inventory. We will see if we get permission to do that. We don’t have permission today.”
Sources last week told GGB News that officials with LVS approached Macau officials to examine the possibility of buying the casinos owned by Wynn Resorts (and Wynn Macau in China) just days after the sexual harassment scandal surrounding Steve Wynn. LVS was reportedly turned away with that plan with very little discussion.
Also in Macau, a plan to track credit issued to VIP gamblers in on hold. Kwok Chi Chung, president of the Macau Association of Gaming and Entertainment Promoters, said the idea must first be OK’d by Macau’s Personal Data Protection Office.
“We are not hurrying to launch the credit database, but we’ll continue our discussion with the government to see how this plan can be realized,” Kwok said.
Gross gaming revenue in the VIP segment grew 26.7 percent year-on-year to MOP150.67 billion (US$18.7 billion) for 2017. The VIP segment has recovered following an historic two-year decline in the gaming industry that endured from mid-2014 to mid-2016. The decline was sparked by a crackdown on corruption and money laundering in the jurisdiction, which sent high rollers to other jurisdictions.
The order was handed down by Chinese President Xi Jinping, who may continue to rule indefinitely following Beijing’s decision to banish term limits.
