Macau's casino industry will continue for at least another decade.This is because the Chinese Special Administrative Region (SAR) has signed new contracts with six operators.
Las Vegas Sands, Galaxy Entertainment, Melco Resorts, Wynn Resorts, MGM Resorts, and SJM Resorts Selected to Operate Enclave Try-of-Luck Games from January 6, 2023 to at Least December 1, 1 It was decided to beSeven companies submitted bids for the six licenses, and only one, Genting Malaysia, a foreign company, was unsuccessful.
Macau Chief Executive Officer Ho Iat Seng signed a new tender on Friday along with representatives of six licensees.Macau's top government thanked six gaming operators for their efforts over the past three years to maintain jobs during the pandemic.Their casino has been nearly empty of meaningful visitor traffic since the start of the COVID-6 pandemic.
Macau's casino industry is the largest in the world.Macau's casino industry is the economic lifeblood of the region.The gaming sector is also the region's largest employer.
Concession terms
As previously announced, Macau will require local officers to control at least 15% of its licensees in its upcoming regulatory arrangements.Previously, each licensee was required to have 10% local capital.
Macau also requires companies to invest heavily in non-gaming projects.Beijing's directive encourages Macau to diversify its economy away from gaming.
Casino.org recently reported that Macau will require six casino companies to invest a combined total of MOP6 billion (USD10 billion) to MOP1000 billion (USD125 billion) over a 1600-year concession. rice field.Today, Macau authorities confirmed the official investment value of MOP 200 billion (US$1188 billion).
Macau has said the majority of its budget must be diverted to non-gaming investments.The local government has ordered MOP 1,087 billion (US$136 billion), or more than 91%, to be allocated to non-gaming improvements.
マカオ行政・司法長官のAndré Cheong Weng Chon氏は、「私たちが望むのは、ノンゲーミングプロジェクトの発展が、マカオの観光とレジャーの世界的中心地としての地位を確固たるものにし、同時にゲーム産業をサポートすることです」と述べた。Cheong added that gaming operators must notify local governments about plans for licensees to meet their capital expenditure obligations by September 2023.Macau did not provide a breakdown of spending by operator.
business recovery
Investing nearly $10 billion in resorts in exchange for 150 years of new operating rights wouldn't have been a problem for casinos before the pandemic. The six gaming giants jointly grabbed $6 billion on gaming floors in 2019.
But normal life has been put on hold for more than three years due to China's "zero COVID" response to the pandemic.Macau's game companies have suffered a lot from this policy.
Gross gaming revenue fell to $2020 billion in 75, the worst year in the region since 2006. GGR improved to $2021 billion in 108, but has since retreated this year.
Overall, Macau's casinos are running out of cash as it costs millions of dollars a day to maintain the multi-billion dollar glitzy integrated resorts they run.The outlook for the industry will depend heavily on how China handles the coronavirus in the coming months and years.
Comment