what this sudden inflow of capital will mean for LVS’s future investments. The $6.25bn raised opens options for domestic spending, but many argue there will be further funding directed towards Asia with obvious implications for the future proofing of their position in Macau in light of their recent US$2bn spend on upgrading the Sands Cotai Central into the Londoner Macao. The licenCe holders are in a state of flux, all eager to appease Macau’s Chief Executive ahead of the looming 2022 concession renewal. Expert analysts Ben Lee, Rui Pinto Proença and Andrew Klebanow offer their perspectives on Macau’s fluctuating relationship with its gaming industry and give their opinion on what the future may hold for the famous concessionaires.
Speaking earlier this year at an event held by the France Macau Chamber of Commerce, Priscilla Roberts, historian and Associate Professor at the City University of Macau, reiterated pre-existing fears of increasing Chinese influence on foreign operations amidst fears of equity being sold to
Chinese firms. Despite the election of President Biden and the calming of geopolitical tensions, she maintains that the US operators exist vulnerably in Macau. Whilst Sands have dismissed these concerns, such claims may not be so overstated.
From a perspective of geography, Macau is wholly unique. The region is the most densely populated in the world, even the term region sounds generous given its population of over 600,000 fits into a space smaller than LAX; a tourism hotspot that has been accustomed to receiving over 30 million visitors a year in pre- pandemic times. Owing to its explosive gaming boom in the 2000s, Macau was listed as the second wealthiest area in the world in 2017 according to the IMF.
Money gambled in Macau underpins approximately 80 per cent of government spending and the Special Administrative Region owes its fortunes to the gaming industry which
surpassed Las Vegas’ gaming revenues in 2006. ultimately peaking in 2013 at $45 billion in GGR – globally overshadowing any other territory.
Before the global pandemic, gaming revenues remained high by international standards but the levels witnessed in 2013 are yet to return. The GGR peak resembles somewhat of a watershed moment for the industry, as the years to come have been characterised by an era of anti- corruption and increased regulation that have stymied Macau’s potential.
Anti-money laundering measures are considered central to the long-term sustainability of Macau as a gambling destination. AML measures as well as intensified restrictions and controls when partnered with an escalating emphasis on diversification away from gaming, suggests the potential for a new future, less dependent on VIP takings with more weight on entertainment, retail and MICE. To truly understand the nature and the intentions behind these changes an appreciation
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