Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Factbox-How Macau is revising its multi-billion dollar gaming industry

Published 09/15/2021, 02:17 AM
Updated 09/15/2021, 02:21 AM
© Reuters. FILE PHOTO: Electronic monitors are seen inside a casino on the opening day of Sheraton Macao hotel at Sands Cotai Central in Macau September 20, 2012.  REUTERS/Tyrone Siu

© Reuters. FILE PHOTO: Electronic monitors are seen inside a casino on the opening day of Sheraton Macao hotel at Sands Cotai Central in Macau September 20, 2012. REUTERS/Tyrone Siu

HONG KONG (Reuters) - Macau's government begins a 45-day public consultation on Wednesday to gauge public opinion on changes to its gaming law ahead of the rebidding process of its multi-billion dollar casinos next year.

WHAT IS HAPPENING?

Casino operators Sands China (OTC:SCHYY), Wynn Macau (OTC:WYNMF), Galaxy Entertainment, SJM Holdings (OTC:SJMHF), Melco Entertainment and MGM China (OTC:MCHVY) are all required to rebid for their licenses, known as concessions, when they expire in June 2022.

Macau stocks plummeted by as much as a third on Wednesday, losing around $14 billion in value, as investors fear the gaming review will lead to tighter regulations in the world's largest gambling hub. [L1N2QH01D]

GOVERNMENT PROPOSAL

Macau has not yet made the rebidding process clear.

A government proposal does not include how many concessions should be granted in future.

Lei Wai Nong, Macau's secretary for economy and finance, said increasing the number could bring "unhealthy competitiveness".

"This can mean that the government might maintain or even reduce the number of concessionaires," he added.

Lei also said the government was open to modifying the current concession period of 20 years but did not give further details.

The government is proposing to increase Macau permanent residents' voting shares in the gaming concessionaires, as well as additional rules on the transfer and distribution of profits to shareholders.

Authorities are also proposing government representatives be selected to participate in casino operators' daily operations to increase supervision.

CONSULTATION PROCESS

Lei has outlined nine main areas proposed by the government to be discussed in the consultation which runs until Oct. 29:

1. Number of gaming concessions to be granted

2. The length of the concessions

3. Strengthened official requirements for the casino operators

4. Employee protection measures

5. Strengthened verification for concessionaires and junket operators

6. Introducing government representatives to monitor day to day operations.

7. Promote projects with non-gaming elements

© Reuters. FILE PHOTO: Electronic monitors are seen inside a casino on the opening day of Sheraton Macao hotel at Sands Cotai Central in Macau September 20, 2012.  REUTERS/Tyrone Siu

8. Social responsibility

9. Clarify new criminal liability and administrative punishment system.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.