Macau extends casino licences for 6 months to allow legislature to enact new gambling law
- The expiry of Macau’s six casino licences will be extended to December 31, from June 26
- The government has asked Macau’s operators to apply for the extension of their licences, said the Secretary for Economy and Finance Lei Wai-nong
The government asked Macau’s six casino operators to apply for the extension of their licences, which are due for expiry on June 26, the Secretary for Economy and Finance Lei Wai-nong told local media after a Legislative Assembly Standing Committee meeting on Thursday..
The six licences are held by Wynn Macau, Sands China, MGM China, SJM Holdings, Galaxy Entertainment and Melco Resorts.
“It’s a positive for the industry in general … because at least all the operators can really plan properly,” Wynn Macau’s chairman Allan Zeman said in a phone interview with the Post, adding that the extension was a “prudent” and “smart move” by the government. “It’s better to have certainty than uncertainty.”
“The timeline for passing the gaming law and completing the retendering process by June was too ambitious,” Daiwa Capital Markets’ analyst Terry Ng wrote in a memo. “On the flip side, it gives the Macau government more time to ensure the amendments to the gaming law are better thought-out and more comprehensive to ensure the healthy development of the [gambling] sector over the long-term.”
Macau makes the biggest reform in gambling laws in two decades
Gambling, banned in mainland China because it’s anathema to Communist Party doctrine, remains legal in Macau to this day. First introduced to the territory and legalised in 1850 under Portuguese colonial administration, the operations and concessions were maintained even after Macau returned to Chinese sovereignty in 1999.
According to the gambling reforms announced in January, the number of casino licenses will be kept at six, but their duration will be slashed to 10 years with up to three years of maximum extension at the government’s discretion, from 20 years with five-year extensions.
“As the public tender process can only happen after the gaming law is approved, and the issuance of the next concessions will take at least a couple of months, it’s unsurprising to see the government pushing out the expiry of the current term to avoid any potential issues,” JPMorgan analysts led by DS Kim wrote in a report.
MGM China welcomes the Macau government’s decision in a statement on Thursday, saying it will comply with the relevant requirements and submit the application for the extension.