“Tere has been significant investment announced and recently completed by concessionaires in new resort development projects on Cotai. Tese factors should help increase the critical mass on Cotai and further drive Macau’s transformation into a leading business and leisure tourism hub in Asia.”
Gaming accounts for 80 per cent of Macau’s tax revenue and employs around 15 per cent of the population in Macau. With Covid and a tighter regulatory grip on the industry the region now however is being forced to look outside of the gambling box.
It is said around ¥1 trillion (US$149bn) leaves China each year in terms of gambling funds. Beijing already limits annual foreign currency purchases to around $50,000 per person and has repeatedly pushed Macau to stop relying on
gambling alone and to diversify its income streams.
In 2019, during his 20th anniversary ‘Macau returning to Chinese rule’ speech, President Xi Jinping suggested Macau focuses on ‘appropriately diversifying its economy and further improving its people’s wellbeing.’
CHANGES IN THE LAW
And Macau listened. In July 2022 the Law 7/2022 amended the Macau Gaming Operations Law 16/2001 bringing in several changes.
Firstly, it limited the number of casino concessions to six but also halved their gaming licences from 20 years to 10 years, with a possible extension of three years. All six operators had reapplied for licences, plus an
application from Genting which failed to make the mark, and gaming licences were renewed until January 2033.
Te number of slots and tables has been reduced so the total number of gambling tables are now capped at 6,000 (previously capped at 6,925) whilst slots have been reduced from 12,387 to 12,000 - a 13 per cent reduction in tables and three per cent reduction in slots.
Some operators fared better than others. MGM was the only company to see an increase in its allocation whilst SJM saw a big drop mostly down to the closure of many of its satellite casinos in Macau.
Te law states the Managing Director of each concessionaire must be a Macau permanent resident and hold at least 15 per cent of the concessionaire’s registered share capital (previously 10 per cent). Share capital must be a minimum of MOP5bn (US$625m).
The number of slots and tables has been reduced so the total number of gambling tables are now capped at 6,000 (previously capped at 6,925) whilst slots have been reduced from 12,387 to 12,000 - a 13 per cent reduction in tables and three per cent reduction in slots. P54 WIRE / PULSE / INSIGHT / REPORTS
Having local partners gives the impression that profits stemming from joint venture casinos are not flowing out of Macau to foreign soil. Despite the huge debt operators have faced keeping their casinos afloat during the pandemic American operators are still keen to commit to Macau.
Sands has been selling off its Las Vegas property and has been shelling out serious money on its
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