In a rare glimpse of clarity over the government’s thoughts on the topic [of Macau’s gaming licences], Macau’s Chief Executive has


entities that have been awarded (conceded) a contract with such scope. Gaming concession contracts have three important characteristics.


Firstly, they are awarded by public tender.


Secondly, they create scarcity by limiting the number of operators in the market (currently three concessionaires and three subs).


And last, but certainly not least, they are limited by time. At the end of their term the government may reassess its policies for the sector and make a judgment on the capacity of existing operators to pursue them.


Te last time the Macau Government conducted such an exercise was in 2001, when it decided to move away from a monopolistic concession and launched an international public tender. Te


revealed that the government will proceed with opening a public


tender, that it has no plans to extend the current terms beyond 2022 and that there will be no tax reduction. It also added that a public consultation on the topic will be launched by the end of the year.


existing contracts are the culmination of such tender. Tey all end in June 2022 and, under the current legal framework, are not susceptible of being renewed.


Tey may, however, be extended beyond their 20-year term, one or more times, for a


maximum of five years. Tis extension may only be granted on an exceptional basis under a justified decision of the Macau Chief Executive.


Neither the law, nor the contracts, prescribe what circumstances may justify such exception. Nevertheless, it is safe to assume that it may only be used if public interest could be substantially better served by not taking a definitive decision in respect of the issue of the concessions, within their maximum natural term.


Tis could happen in two scenarios:


(i)by reasons internal to the Government - if it is not able, for political reasons or otherwise, to complete the tender process in a manner that would guarantee a continuous and uninterrupted operation of the market;


NEWSWIRE / INTERACTIVE / MARKET DATA P101


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