Opinion
MACAU Licences
gaming sector in the period between 2020 and 2030. One topic for consideration is how many gaming licences should be allowed in the market in the aftermath of the expiry of the current rights. Macau’s gaming law states that the licences of the existing holders can be extended for a maximum of up to five years from their original expiry dates. But once a gaming concession contract expires, any new concession would have to be granted via a public tender. In that sense, say gaming lawyers familiar with the matter, there is no such thing in the Macau context as a “concession renewal.”
Sands China has already announced plans to refresh its existing Sands Cotai Central resort on Cotai by transforming it into “Te Londoner,” themed around famous architecture and other sights in the UK’s capital city. Te remodeling will add an additional 1.7 million square feet of space, and the resort will accommodate more overnight guests than the Venetian and the Parisian combined, said billionaire founder and CEO Sheldon Adelson. Te Four Seasons Macao will get 295 new suites in a separate tower.
Te investment of around MOP8.9 billion by Sands China to rebrand the Sands Cotai Central into this new development is “a vote of confidence on our future and our commitment to Macau in the longer term,” Mr. Wong said. Questioned on the risks of such large investment in the project, which is expected to open in 2020, only two years before the expiration date of the concession, Mr. Wong replied, saying “Life is full of risks,” but he thinks “the fact that we are committed to a US1.1bn investment just shows how confident we are in the future, not just of ourselves, but of Macau as well.”
Chinese football clubs have spent hundreds of millions on high profile players from European domestic leagues. At first this may simply be explained by a shift in tastes and preferences in China, a response to a rising demand for football. However, on the April 11, an article written by the BBC described a master plan that aims to make China a global “football ‘superpower’ by 2050”, the article even makes President Xi Jinping out to be a football enthusiast.
In November last year, Macau’s Chief Executive, Fernando Chui Sai On, said that mid-2018 would be an “appropriate” time to provide more details regarding any extension of gaming rights for Macau’s current gaming concessions and sub- concessions. Mr. Wong added: “We are doing everything that the government really asked us to do; more non-gaming facilities, more investment in MICE. So, we are doing every step according to what the government wants.”
Ambrose So Shui Fai, CEO of SJM Holdings, also noted that the Macau casino industry would like “clarity” from the authorities regarding the concession topic.
Te Macau government has commissioned two studies on the possible development of the city’s
Mr. Wong elaborated by saying “I think what we as concessionaires and operators have to do is to show our commitment, show our sincerity and hopefully all these will count during the government’s retendering exercise and we make sure that the government understands what we are doing.”
LOST CONTACT WITH OUR SATELLITE A firm investing in one of Macau’s so-called
satellite casinos is floating the idea of effectively ending the Macau government’s gaming concession system and moving to licensing by venue.Te idea was suggested by Hoffman Ma Ho Man, executive director and deputy chairman of Success Universe Group Ltd, an investor in the Ponte 16 casino hotel that currently operates under the gaming concession of SJM Holdings.
“In my opinion, the scheme to license casinos individually is a plan that is worth the most consideration because it can benefit Macau people the most, as it is the locals who are the majority of service providers for satellite casinos,” stated Mr Ma, referring to third-party investors that currently rely on the gaming permit of one of the six existing concessionaires.
Mr Ma has stated in the past that the satellite license-holders are “disadvantaged” in the sense that they “have to pay an extra cost on top of a [gaming] concession – by this cost we mean the profit that we have to share with the gaming concessionaire”.
According to the latest available information from the Macau casino regulator, the Gaming Inspection and Coordination Bureau – also known as DICJ – SJM Holdings currently provides gaming rights to 16 active satellite casinos. Most of the existing Macau satellite venues piggyback on SJM Holdings’ licence, although Galaxy Entertainment Group Ltd – at Casino Waldo, Rio Casino and Casino President – and Melco Resorts and Entertainment Ltd – at Casino Taipa Square – also share their respective licences with third-party hotel owners.
Professor Wang Changbin, director of the Macao Polytechnic Institute Gaming Teaching and Research Centre, thinks that the practice of granting licences to casinos individually has its merit, as all casino operators and service providers would then be subject to the same level of scrutiny over their background and their source of finance.
“Currently, those who possess a gaming licence can have multiple casinos, while those who don’t will have to work with the licensees and manage the satellite casinos. [Service providers of satellite casinos] may not be subject to some of the regulatory measures… [or] at least [the administrators of satellite casinos] are not shown on the official government documents. Regulatory loopholes thus could exist. However, such a system would swell the number of casino licences, which would not look good.
“If each casino in Macau were to receive a licence, then the number of casino licences in Macau would have ballooned from the current six to dozens. Tis would not be a good-looking picture to the public. It might seem that the Macau government was encouraging gambling,” the professor said.
GREATER FLEXIBILITY Paradise Entertainment currently manages
casino gaming at Casino Kam Pek Paradise under the SJM Holdings gaming licence. It also manages casino operations at Casino Waldo also in downtown Macau, under a Galaxy Entertainment licence. “If satellite casinos can have their own licences, it will be, for sure, more convenient. Currently, we need to follow the strategy of the concessionaire,” said Paradise Chairman, Jay Chun said.
NEWSWIRE / INTERACTIVE / MARKET DATA P89
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