Local chief executive confirmed Macau will launch a licence tender process for gaming permits before current ones expire in 2022.
Macau.- The future of Macanese gaming licences remained unclear until recent comments by chief executive Fernando Chui Sai On. The official confirmed a Macau licence tender process will be launched before the current ones expire in 2022.
The executive made the announcement during a Legislative Assembly but didn’t give any timeline for it.
The government had just renewed MGM China and SJM Holdings licences, extending them until 2022. Their previous permits were set to expire in 2020 but were prolonged to match the rest of the group.
According to Bernstein analysts, criteria for the concessions would likely include several commitments. That covers non-gaming offerings, improved labour rights or working conditions for the employees.
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.