The Macau government announced on Saturday that its six current casino operators would receive new licenses to start operating in the largest gambling hub in the world in January, leaving Malaysian operator Genting out.
The operators in Macau, who have put more than $50 billion into the Chinese special administrative region over the past 20 years, are glad to hear the news because it means stability and continuity.
At a news conference, officials in Macau, which has the most casinos in the world, said that the main reasons for giving licenses were to create jobs for locals, attract more tourists from other countries, and work on projects that don’t involve gambling.
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Genting Malaysia was viewed as a legitimate threat to a Macau license due to its solid non-gaming track record and mass market appeal. Beijing is adamant that Macau move away from gambling and bring in tourists from other countries. These are two of Beijing’s most important goals.
An email requesting comment from the business did not immediately receive a response.
The casino area would have had to be given back to the government for free at the end of this year if any incumbents had lost, making it financially impossible to run the remaining facilities since gambling accounts for 80% to 90% of total revenue.
Since 2002, several companies have operated in the Chinese SAR, including Sands China (OTC: SCHYY), Wynn Macau (OTC: WYNMF), Galaxy Entertainment, MGM China (OTC: MCHVY), Melco Resorts, and SJM Holdings (OTC: SJMHF). The conclusion of this year will see the end of their concessions.
Lawrence Ho, the chairman and chief executive of Melco, said in a statement, “We are committed to Macau and its development as Asia’s premier tourist destination.”
