Macau’s casinos fulfilled all commitments
The gambling industry review found that all casino operators in its territory had fulfilled commitments agreed in initial contracts.
Macau.- Today, the government of Macau announced that all casino operators within its territory had fulfilled commitments they agreed on in initial contracts signed over a decade ago. This marks the culmination of a year-long review into the impact of the gambling industry. The review was widely seen by analysts, investors and industry executives as an opportunity to learn how authorities viewed the operators ahead of the license renewal processes, which start in 2020.
In the review, the Macau’s government acknowledged the contribution to the economy made by casino operators Sands China Ltd (HK:1928,) Wynn Macau Ltd (HK:1128,) Galaxy Entertainment Group Ltd (HK:0027,) Melco Crown Entertainment Ltd (O:MPEL,) SJM Holdings Ltd (HK:0880) and MGM China Holdings Ltd (HK:2282.)
According to the review, they each met commitments including creating upward mobility for employees and diversifying gaming revenue. The government said non-gaming elements generated income of 23.2 billion patacas (US$2.90 billion) in 2014. “Currently, total non-gaming spending of tourists in Macao is comparable to that of Las Vegas. However, the percentage is diluted as Macao’s gross gaming revenue is far too high,” expressed the government.
Regarding junket operators, the government said initial findings suggest increased awareness of compliance since the Gaming Inspection and Coordination Bureau (DICJ) began its investigation. The regulator had visited about half of junket operators, over 80, and the investigation will be completed in six months.
The regulator is currently working with the industry to establish a central credit database to minimise credit risk. The industry is burdened with bad debt and since casino debts are illegal, there is no formal mechanism for claiming from gamblers in China.
