Despite delays due to the new outbreak of Covid-19 cases, authorities expect to analyse and publish the regulations for the retender of Macau’s six gaming concessions this month.
Macau.- The government of Macau is putting shape to the bidding process for the city’s casino concessions. According to TDM Radio, authorities have begun studying the new rules and, will publish the conditions for the retender for Macau gaming concessions this month, despite some delays due to the new outbreak of Covid-19 cases in the city.
Casino operators have extended their current gaming licences until December 31 due to the delays in opening the tender. They paid MOP47m (US$6m) and provided a bank guarantee for MOP1.6bn to cover possible employee dismissals. Companies have already created teams to prepare the necessary documentation to participate in the public tender.
Once the government announces the new bidding process, casino operators will have one month to submit their applications, which will be evaluated by a special committee to verify that candidates meet the requirements of Macau’s new gaming law.
After that, the committee will meet with casino operators to jointly evaluate the proposals and analyse the details of each tender. The licence renewals should be announced in October or November. New contracts will be signed in December and will take effect on January 1, 2023.
Macau’s gaming law amendment bill
The new law that was approved in June allows up to six gaming concessions with a length of 10 years with the possibility of a 3-year extension. It requires operators pay a direct gaming tax of 35 per cent and a flat tax of 5 per cent for social welfare and urban development in Macau – an increase of 1 per cent. The 5 per cent indirect tax can be reduced if operators manage to attract more foreign players to their casinos.
Companies are required to have a registered capital of at least MOP5bn during the validity of their licences. The concessionaire and anyone holding more than 5 per cent of the operator’s shares must not own, directly or indirectly, the capital of any other concessionaire.
The government will take into account the franchisee’s business activities, their investments in non-gaming elements and the overall economy of Macau when determining the number of gaming tables and slot machines allowed.