Wynn Resorts CEO optimistic about future of Macau gaming
Matt Maddox, chief executive of Wynn Resorts Ltd, believes Macau’s intention to increase the oversight of gaming concessionaires was a practical decision rather than a punitive one.
Macau.- Matt Maddox, CEO of Wynn Resorts Co, the parent company of Wynn Macau, believes that recent proposals for the future regulation of Macau’s casino industry are “practical”, not punitive.
In an interview with the business news channel CNBC, he said Macau is aiming to become a highly regulated environment like in the United States.
He said: “I have a very, very bullish view of the future of Macau and what we’re going to see going forward.”
Wynn Macau currently employs 15,000 workers. Its share price declined by 10.85 per cent after reports of a possible change in current gaming laws.
Authorities want to end the current sub-concession system that led to the creation of three additional Macau casino licences and to increase the oversight of gaming concessionaires and junket operations. They will, however, maintain at least six gaming concessions.
They have also proposed the election of “delegates” to Macau’s gaming concessions to allow “greater checking” on the activity of the gaming firms. A delegate system is already used to monitor other forms of public concession.
Government delegates would be assigned to gaming concessionaries to enable the direct monitoring of daily operations. Authorities have also suggested that administrators should meet certain requirements and get government endorsement before distributing profits, regardless of whether it be in cash or shares.
Authorities to impose stricter rules for Wynn Macau, analysts say
Analysts at Bloomberg believe that the government of Macau could impose higher requirements for capital investment or restrictions on expenditures on casino operators with a US parent company.
That would mean that compared to other companies, Wynn Macau and Sands China could see less favourable conditions as both casino operators have high dividend payouts and large exposure.
Casino operators request more info on Macau gaming law changes
Representatives of Macau’s casino operators have attended a public consultation session with authorities on the revision of the city’s gaming law.
According to local media reports, SJM Holdings Ltd, Galaxy Entertainment Group Ltd and Wynn Macau Ltd expressed concerns about the idea of raising the minimum share capital required for the gaming companies.
Casino operators also said the government should give more details on the proposal that gaming concessionaires should be part held by a Macau resident.
Linda Chen, vice-chairman and chief operating officer of Wynn Macau Ltd, claimed further guidance on the suggestion that administrators should meet certain requirements and get government endorsement before distributing profits, regardless of whether it be in cash or shares.
Chen said: “As long as the regulatory aspect as defined in this legal framework is transparent, it will be positive and good for our industry’s long-term development.”
