over the running of the buses. Everyone returned to work the very next day, and the government continued running the buses for a couple of months until they arranged for the other companies to take over.


Do you think the fears of foreign equity being sold to mainland China are greatly overstated?


Ben Lee: No. Te fears are not overstated, the fears are real, the risks are real. Te original concession was issued on the basis of one third of its constituents would have US interests. One out of three – the one being Wynn. However, the three became six and the American’s share grew to 50 per cent control of the industry.


Beijing is not happy with this situation. And don’t forget that the new concession tendering is not a retender, it is not a reissuing, nor is it a renewal, it is a brand-new RFC. Anybody can submit a proposal. Tis is the first opportunity for China to rebalance the industry. So there are risks.


Te way for China to rebalance the concessions is to either reject one of one or two of the three foreign controlled entities, or one or two of the


“In December 2020, China's National People's Congress passed an amendment to its criminal law that will make it a crime to enable mainland Chinese citizens to gamble outside of the country. The penalty for such an infraction is severe, with prison sentences up to five years for minor infractions and 10 years for more serious ones. Basically, it’s no longer businesses as usual. While both Macau’s government and casino operators want to turn the volume up with the help of the junkets, the junket operators are saying: 'wait a minute, I'd like to bring people to the market too, but I also don't want to go to prison.'” Andrew Klebanow


foreign country entities, or contrive a dilution of their equity to a point where it is acceptable or they are seen as locally vested business. Such a decision is clearly on the table.


Andrew Klebanow: Te fears exist, but it's the pandemic that has really thrown a wrench in the Macau business model. Both the Macau government and the operators want to see business recover as quickly as possible. In order to achieve those goals, operators need junket operators to deliver high rollers to Macau. Tey need to reach out to Sun City, to the David group, Tak Chun, etc. Traditionally, junket operators have been very good at delivering the players operators need. However, there's a problem...


In December 2020, China's National People's Congress passed an amendment to its criminal law that will make it a crime to enable mainland Chinese citizens to gamble outside of the country. Te penalty for such an infraction is severe, with prison sentences up to five years for minor infractions and 10 years for more serious ones. Basically, it’s no longer as businesses usual.


While both Macau’s government and casino operators want to turn the volume up with the help of the junkets, the junket operators are saying: 'wait a minute, I'd like to bring people to the market too, but I also don't want to go to prison.'


P48 WIRE / PULSE / INSIGHT / REPORTS


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