Bill Hornbuckle, MGM president and CEO, has said he is “highly confident” that MGM China’s gaming concession will be renewed.
Macau.- During the presentation of MGM Resorts’ financial results for the third quarter of the year, Bill Hornbuckle, MGM president and CEO, said he is confident MGM’s gaming licence in Macau will be renewed.
Macau’s current casino licences are due to expire in June 2022. However, the city’s gaming laws state that licences can be extended for up to five years from the original 20-year term.
Hornbuckle stated: “Whether or not this all gets done in time for June, we don’t know yet. There are some steps the Macau authorities still have to go through publicly with the Legislative Assembly.”
He added: “MGM looks forward to further promoting the long-term development of Macau’s gaming industry and to supporting the government’s tourism and diversification goals for the region.”
Macau’s Gaming Inspection and Coordination Bureau (DICJ) has reported that 359 people attended the series of public consultation sessions on gaming laws. Attendees expressed concerns about the number and duration of future gaming concessions and about proposed controls on dividend distribution.
A Macau law firm questioned that proposal, arguing that “there is no legal framework to justify any intervention by the Macau authorities in the distribution of dividends from private companies.”
Questions about a possible end to the current sub-concession system that led to the creation of three additional Macau casino licences also arose during the sessions.
MGM CEO has no worries about increased control over Macau’s casinos
Bill Hornbuckle said that he has no concerns about the proposed changes to Macau’s gaming laws, and that tighter controls shouldn’t modify the industry.
During an interview with Yahoo Finance, he said the Gaming Inspection and Coordination Bureau (DICJ) already maintained significant oversight over operations.
Hornbuckle noted that he is optimistic as casinos contribute to 80 per cent of government revenue and are a key driver for Macau’s economy. He said: “We are hoping rational minds control in the end because this is the Macau economy.”