Macau extends casino licences

The gambling hub has extended casino licences for MGM China and SJM Holdings.

Macau.- Chinese authorities revealed late on Friday that MGM China and SJM Holdings received an extension on their casino licences until 2022. Both operators are required to pay a one-off fee of approximately €20 million.

The government said that the current licences are set to expire in 2020 and therefore they were renewed to bring them to the same situation as other operators, which have already renewed theirs. Wynn Macau, Sands China, Galaxy Entertainment and Melco Resorts & Entertainment will have to rebid for their licences in the upcoming years, as they’re set to expire in June 2022.

“We believe the extensions have more to do with making the ultimate task of the licence rebid situation easier, while at the same time making sure the labour market remains stable,” said Grant Govertsen, an analyst at Union Gaming in Macau.

After the announcement, shares in MGM increased 10%, while SJM’s jumped over 5% after resuming trading.