Studio City may transfer ownership of casino due to Macau legal changes

Macau’s new gaming law would end the current sub-concession system that led to the creation of three additional Macau casino licences, including that of Studio City casino resort.

Macau.- Macau’s Legislative Council has approved the first reading of the gaming law amendment bill, which would end the current sub-concession system. As a result, Studio City International Holdings is analysing the future of its casino resort.

Currently, the premises of Studio City Casino is owned by Studio City International Holdings rather than by the gaming operator Melco Resorts and Entertainment Ltd. That may need to change if it’s to continue operating under the proposed new legislation.

The company said: “For that purpose, we would need to seek an amendment to the terms of the Studio City land grant and comply with and complete various other administrative procedures which are subject to Macau government’s consents, approvals and authorizations.”

It added “It is not clear from the proposed law how this would affect the status” of the firm’s “existing services agreements or the arrangements implemented in such agreements after the three-year transition period.”

The gaming law amendment bill also proposes that casino operators in Macau be given minimum annual casino gross gaming revenue (GGR) targets, which would be calculated based on the maximum number of gaming tables and gaming machines each gaming concessionaire is permitted to operate.

The bill would also allow junket operators to each provide services to only one casino operator