{"id":30886,"date":"2022-06-17T05:19:14","date_gmt":"2022-06-17T08:19:14","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=30886"},"modified":"2026-04-23T07:41:28","modified_gmt":"2026-04-23T10:41:28","slug":"macau-casinos-must-hold-us620m-in-capital-during-concession-period","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/macau-casinos-must-hold-us620m-in-capital-during-concession-period","title":{"rendered":"Macau casinos must hold US$620m in capital during concession period"},"content":{"rendered":"\n

After analysing the final draft of Macau\u2019s general gaming law amendment, JP Morgan has deduced that casino operators must have capital of MOP5bn (US$620m) during the entire concession.<\/p>\n\n\n\n\n\n\n\n

Macau.- Analysts continue to scrutinise the final draft of Macau’s new gaming law<\/a>. JP Morgan has noted that article 17<\/strong> of the law that establishes a minimum share capital requirement for any local casino concessionaire of MOP5bn (US$620m).<\/p>\n\n\n\n

Analysts pointed out that operators will need to prepare MOP5bn in cash \u2013 or deposits \u2013 and keep net asset value above MOP5 bn at all times during the concession period. According to JP Morgan, this is the reason for Wynn Macau’s agreement<\/a> with its US parent company, Wynn Resorts Ltd<\/strong>, for a US$500m revolving loan facility.<\/p>\n\n\n\n

Vote on Macau\u2019s gaming law amendment bill to take place on June 21<\/h2>\n\n\n\n

A vote on the final draft of Macau’s gaming law is respected on June 21. The draft was approved by the Legislative Council\u2019s second standing committee on June 15. It made several changes to the original draft, the most significant of which concerned tax hikes on gambling and the future of satellite casinos.<\/p>\n\n\n\n

The new draft requires operators to 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 from before. This 5 per cent indirect tax can be reduced if operators manage to attract more foreign players<\/a> to their casinos.<\/p>\n\n\n\n

Major changes also require any casinos operating in the city to be established on assets owned by gaming operators<\/strong>. However, authorities extended the original three-year grace period <\/strong>proposed to allow satellite casinos to resolve ownership issues.<\/p>\n\n\n\n

Six-month casino contract extensions will be signed on June 23 to extend existing concessions pending a new tender.<\/p>\n","protected":false},"excerpt":{"rendered":"

After analysing the final draft of Macau\u2019s general gaming law amendment, JP Morgan has deduced that casino operators must have capital of MOP5bn (US$620m) during the entire concession.<\/p>\n","protected":false},"author":176,"featured_media":22068,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"JP Morgan's analysis of Macau's amended gaming law reveals a mandatory MOP5bn (US$620m) minimum share capital for concessionaires, influencing financial strategies like Wynn Macau's US$500m loan facility. The new law, set for a June 21 vote, also increases direct gaming tax to 35% plus a 5% social welfare levy, with incentives for attracting foreign players, and mandates gaming operator ownership for all casinos, extending the grace period for satellite casinos.","focusai_entities":"JP Morgan, Wynn Macau, Wynn Resorts Ltd, Legislative Council","focusai_location":"Macau, US","focusai_target_profile":"ceo_executive (1.0), regulator (1.0), compliance_legal (1.0), operator_casino (1.0), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (1.0)","focusai_suggestions":[{"label":"Capital Requirement Impact","query":"How will the MOP5bn minimum capital requirement affect the competitive landscape and potential for new market entrants in Macau's gaming sector?"},{"label":"Tax Structure Implications","query":"What are the projected GGR and NGR impacts of the increased direct gaming tax and the foreign player incentive on Macau's concessionaires' profitability and reinvestment strategies?"}],"footnotes":""},"categories":[157,16338],"tags":[23911,23906],"class_list":["post-30886","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-east-asia-news","tag-gambling-regulation","tag-macau-casinos"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/30886","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=30886"}],"version-history":[{"count":3,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/30886\/revisions"}],"predecessor-version":[{"id":30919,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/30886\/revisions\/30919"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/22068"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=30886"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=30886"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=30886"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}