Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
News
All NewsCompaniesIndexesCurrency / ForexCommoditiesCryptocurrenciesETFInterest RatesEconomyThemesSectors 

Gambling giant Macau opens bids from seven casinos, with one firm to lose

09/15/2022 | 07:12pm EST
Signage of Genting Malaysia’s Resorts World is displayed at its complex of casino, hotel and entertainment park in Genting Highlands

HONG KONG (Reuters) - Macau's government opens bids on Friday from seven companies, including a wildcard from Malaysian operator Genting, for licenses to operate casinos in the world's biggest gambling hub, kicking off a closely watched battle for six available slots. Macau's top officials including the city's Economy and Finance secretary, Lei Wai Nong and Secretary for Administration and Justice, André Cheong, are due to attend the opening together with heads of Macau casinos including Las Vegas Sands Macau unit Sands China, Wynn Macau and MGM China. All six incumbent Macau players, which also include Galaxy Entertainment, Melco Resorts and SJM Holding, submitted bids ahead of a deadline on Wednesday together with GMM Limited, a holding company of Genting Group Chairman Sri Lim Kok Thay, which does not operate casinos in Macau. GMM's application was seen as a surprise to many executives and analysts, with some saying it posed extra uncertainty for local operators. Genting would have been encouraged to apply and would be a good fit given they are the only operator of the applicants with a strong background in theme parks, said Ben Lee, founder of Macau gaming consultancy IGamiX. "There is a chance they can topple one of the incumbents, they (Genting) think so, too, otherwise they wouldn't have laid out a HK$10 million ($1.27 million) buy in bet." Genting operates casinos in Singapore, Malaysia, the United States and Britain and has extensive non-gaming operations -- a key priority for the Macau government. It has also made a series of investments in China, including a prime ski resort which hosted the 2022 Beijing Winter Olympic games.

The sector has been reeling since the start of the COVID-19 pandemic, with revenues sliding 70% in 2021 to $10.8 billion from $36 billion in 2019. Macau's new casino licenses are expected to begin in 2023 and are crucial for the six incumbents to keep operating their multi-billion dollar properties. They have collectively invested some $40 billion in Macau since casinos were liberalised more than 20 years ago. All companies submitted their bids in person via two large stacks of paper files, transported by trolleys, to the government on Wednesday, according to footage from public broadcaster TDM. They had to pay HK$10 million to apply. The bidding comes as Macau casinos have been slammed by ongoing COVID curbs and travel restrictions. Authorities have also rigorously tightened control over gambling operations in the former Portuguese colony via new legislation. The government is expected to review the proposals and negotiate with the bidders before announcing six winners by the end of November or early December, analysts said.

When bidding, "special consideration should be given to develop foreign tourist markets, experience in operating casino games, investment in gaming and non gaming projects for Macau's benefit, plans to manage the casino, plans to monitor and prevent illegal activities and social responsibilities," a statement on the government's website said.

($1 = 7.8478 Hong Kong dollars)

(Reporting by Farah Master; Editing by Kim Coghill)


© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
GALAXY ENTERTAINMENT GROUP LIMITED 0.00% 45.65 Delayed Quote.6.56%
LAS VEGAS SANDS CORP. 2.31% 44.66 Delayed Quote.15.97%
MELCO HOLDINGS INC. -0.16% 3130 Delayed Quote.-20.52%
MGM CHINA HOLDINGS LIMITED 1.38% 5.14 Delayed Quote.0.63%
MSCI SINGAPORE (GDTR) 1.11% 5651.17 Real-time Quote.-10.68%
SANDS CHINA LTD 0.00% 19.88 Delayed Quote.3.52%
WYNN MACAU, LIMITED 0.53% 5.69 Delayed Quote.-21.19%
Latest news "Economy"
05:58pTwitter blue verified set to launch on Apple's iOS app - Information
RE
05:58pTwitter not safer under Elon Musk, says former head of trust and safety -conference
RE
05:53pDisney warns restructuring could result in impairment charges
RE
05:42pTwitter Blue Verified Scheduled To Roll Out On Friday But Only On Apple'S IOS Mobile Software - The Information
RE
05:42pTwitter blue verified is scheduled to roll out on friday but onl…
RE
05:42pThe WSJ Dollar Index Falls 0.09% to 99.34 -- Data Talk
DJ
05:42pEuro Lost 0.09% to $1.0331 -- Data Talk
DJ
05:42pSterling Lost 0.08% to $1.1951 -- Data Talk
DJ
05:42pDollar Lost 0.16% to 138.71 Yen -- Data Talk
DJ
05:39pU.S. senators introduce bill to expand E15 gasoline sales, with support from oil group
RE
Latest news "Economy"