Macau casino licences to be extended to December 31, 2022
The Government of Macau has confirmed it will extend current gaming concessions and sub-concessions for up to six months. The new tender process may begin in Q3.
Macau.- Lei Wai Nong, Macau’s secretary for economy and finance, has confirmed that the territory’s current casino licences will be extended until December 31. The casino licences were due to expire in June 2022, but a tender process for renewal has yet to be held due to delays in changes to Macau’s gaming legislation.
Wai Nong made the announcement after a Legislative Assembly meeting to discuss Macau’s gaming law amendment bill. The bill would allow up to six gaming concessions with a length of 10 years with the possibility of a 3-year extension. A final reading of the gaming law amendment bill is expected by June.
The bill would end the current sub-concession system that led to the creation of three additional Macau casino licences. The government wants to increase the oversight of gaming concessionaires and junket operations and operators would only be able to have a maximum of 30 per cent of their shares listed publicly.
Macau casino tender process may open in Q3
A new concession tender will be run following the final approval of the gaming law amendment bill. JPMorgan Securities has said it expects the open tender process to begin in the third quarter of this year, with licences to be issued in the fourth quarter in preparation for a new 10-year licence period from the beginning of 2023.
Analysts predict that the winners of the new casino licences will be the current six operators. Analysts at Sanford C. Bernstein Ltd have said casino operators might have to pay US$6m for the extension of concessions.
