Sands China, Galaxy Entertainment lead Macau casino bidders promising US$12.5 billion in investment over 10 years

The Macau government has agreed to proposals from seven companies who are bidding for six casino licences set to take effect in 2023

The six current operators will prevail over a seventh tied to Genting, according to a JP Morgan analyst who says the investment level is reasonable

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The Galaxy Casino resort on the Cotai Strip in Macau on October 20, 2022. Operator Galaxy Entertainment is one of two licensees to promise MOP$20 billion in investment in Macau if it wins a new 10-year licence. Photo: AFP

Published: 5:30pm, 14 Nov 2022

The Macau government has reportedly agreed to proposals that would see casino operators invest a combined 100 billion patacas (US$12.5 billion) in the city over the next decade, with Galaxy Entertainment Group and Sands China promising the biggest outlays, as seven companies vie for six 10-year casino licences.

In the meeting, current licensees Sands and Galaxy committed to invest more than 20 billion patacas each if they retain their concessions, according to the Portuguese-language radio broadcaster TDM.

The other five companies – current operators Melco Entertainment, MGM China, SJM Holdings and Wynn Macau, plus a last-minute entrant linked to Lim Kok Thay, the billionaire chairman of Malaysia’s Genting Group – committed to invest about 15 billion patacas each, taking the combined total for the six winners to 100 billion patacas , TDM said.

In addition, the government used the meeting to highlight its concerns that the bidders’ proposals do not invest enough in non-casino elements, and restated an earlier position that it will not grant any additional land for gaming facilities, according to TDM.

Lim Kok Thay, the billionaire chairman of Genting Group, submitted a bid for a Macau casino licence within hours of the tender deadline in September. Photo: Bloomberg

The Macau public tender committee was unavailable for comments.

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