Macau’s six concessionaires have announced the annual fee to rent back casino areas as new 10-year gaming concessions become effective.
Macau.- Macau’s six concessionaires have reported that they will each pay the Macau government a base sum of MOP750 (US$92) per square meter of gaming space for the first three years of their new 10-year concession contracts. Payment will rise to MOP2.500 (US$310) per square meter for the remaining seven as they effectively rent back the casinos as their respective integrated resorts.
In the second and third base years, and fifth to tenth years, the base payment will be raised in accordance with the Macau average price index.
The new concessions began on January 1. The casino licensees remain: MGM China Holdings Ltd, Galaxy Entertainment Group Ltd, Sands China Ltd, Melco Resorts and Entertainment Ltd, Wynn Macau Ltd and SJM Holdings Ltd.
“The utilization fee comes after the casino areas of the concessionaires’ properties were reverted back to the Macau SAR Government upon expiration of their previous 20-year concessions on 31 December 2022,” SJM Resorts explained at a press conference on Friday.
“Our annual utilization fee, which accounts for the use of casino areas at Casino Grand Lisboa, Casino Grand Lisboa Palace, Casino Lisboa and Casino Oceanus at Jai-Alai, will amount to MOP69m (US$8.6m) in year one (2023), rising to MOP229.3m (US$28.7m) in year four (2026).
Melco Resorts and Entertainment’s chairman and CEO Lawrence Ho said in a press release: “We had reverted and agreed to rent back casino areas totalling 31,227.3 square meters at City of Dreams Macau, 28,784.3 square meters at Studio City and 17,128.8 square meters at Altira, implying an annual fee of MOP57.9m (US$7.2m) for the first year of its new concession, rising to MOP192.9m (US$24.1m from the fourth year.
Ho added: “The company is grateful for the Central government’s leadership and guidance in supporting Macau’s continued integration with mainland China. We pledge our full support to the sustainable and diversified development of the tourism and leisure industry in Macau and will continue to work with the government, the community and stakeholders to benefit and contribute to the city’s development as a key global tourism destination.”
See also: Macau gaming revenue down 51% in 2022