Macau should take leadership in diversifying its economy, analyst says
On the second day of G2E Asia 2022 Special Edition: Singapore, analysts discussed the outlook for the Macau gaming market.
Macau.- As casino operators prepare their bids for Macau’s gaming retender process, gaming executives, analysts and market observers discussed the outlook for the Macau gaming market at G2E Asia 2022.
As previously reported by Focus Gaming News, bidders in the gaming retender will be expected to submit thorough non-gaming plans as part of their applications. However, analysts said it might be too much to expect concessionaires to offer wide-ranging non-gaming services.
According to Macau Business, Chen Si, the newly-appointed chief operating officer of Inspire Entertainment Resort, an integrated resort in South Korea said: “There’s an absence of leadership from the government at the working level to coordinate, develop policies and design mechanisms to drive these offers into Macau.
“That’s not really the concessionaires’ role. They have the resources and space to support, but to have them in the driver’s seat is a bit far-stretching.”
As for the results of the tender, Jorge Godinho, a Macau gaming legal academic, believes the current six operators will remain in operation over the next decade, but he does not rule out surprises.
The panellists expressed optimism about the market, but Ken Jolly, vice president and managing director for Asia of gaming equipment provider Light & Wonder, noted that the key to a successful recovery lies in removing the current border restrictions and ensuring a steady flow of mainland Chinese visitors to Macau.
Macau’s tender commission, which was set up in July, has said bids will be evaluated in accordance with the following factors:
- The company’s proposal to expand tourist markets from foreign countries;
- Its experience in operating casinos or other relevant businesses;
- The benefits of their gaming and non-gaming investments;
- The company’s plans to manage its casino operations;
- Its monitoring and prevention of illegal casino activities recommendations;
- Its commitment to corporate social responsibility activities.
The new gaming legislation allows up to six gaming concessions – equal to the current number – with a length of 10 years. Casino operators must have a registered capital of at least MOP5bn while their licences are valid. The concessionaire and anyone holding more than 5 per cent of the operator’s shares must not own, directly or indirectly, the capital of another concessionaire.
Macau’s GGR for the first seven months of 2022 stands at MOP26.6bn (US$3.29bn), down 53.6 per cent year-on-year. GGR for July was the lowest since 2003 when city authorities began publishing monthly figures.
