Secretary for Economy and Finance Lei Wai Nong said yesterday that the holders of Macau’s three gaming concessions and three sub-concessions, which will expire on June 26, can ask the government to extend their respective agreements until December 31.
The gaming sector comprises three concessions (SJM, Galaxy and Wynn) and three sub-concessions (Sands, Melco and MGM). The three concessionaires sold one sub-concession each.
The bill proposes that the government can grant a maximum of six gaming concessions for up to 15 years, while sub-concessions will become a thing of the past.
Talking to reporters on the sidelines of yesterday’s meeting of the Legislative Assembly’s 2nd Standing Committee, Lei said that the government has informed the six gaming operators that they can take the initiative of applying to the government to have their respective concessions and sub-concessions extended until the end of the year. However, Lei was quick to add that the government hasn’t received any applications yet. He did not say when the government had told the six operators that they could apply for an extension to their respective agreements until the end of the year.
Lei said that the government “fully respects” the lawmakers’ effort to review the bill and submit it for a final debate and vote in a plenary meeting as soon as possible.
The policy secretary, whose portfolio includes supervision of the gaming sector, also said that the government would launch preparations for its tendering process for the up to six future concessions once the bill has been passed by Legislative Assembly.
Observers expect the legislature to pass the amendment bill in a matter of weeks.
Lawmaker-cum-restaurateur Andrew Chan Chak Mo, who heads the legislature’s 2nd Standing Committee, which is currently reviewing the government-drafted gaming amendment bill, said after yesterday’s meeting the government believed that the bill’s proposed three-year transition period is sufficient for the up to six concessionaires to regularise their satellite casino issue.
Currently, many of the city’s 42 casinos are housed in premises that are not the property of those who own the casinos, and some of them are run by third parties, such as junket operators. They are informally known as “satellite casinos”.
The bill proposes that all casinos must be housed in premises that are owned by their respective operators.
Yesterday’s closed-door meeting, which lasted two hours, was attended by Lei and other government officials, alongside 22 legislators, including 11 who are not members of the 2nd Standing Committee but are entitled to attend without taking an active part.
The committee has 10 members including its president and secretary. The legislature has 33 members.
Chan quoted the government officials who attended the meeting as saying that the proposed three-year transition period will be started once the new concessions are granted. Chan added that the future gaming concessionaires have a legal responsibility to ensure the protection of their staff members’ employment rights.
Chan also quoted the officials as saying that the future concessionaires would be allowed to buy the premises of the current satellite casinos in order to bring their ownership in line with the future law, which would then enable the satellite casinos to continue operating.
Chan said that the committee will continue its article-by-article review today with government officials to further discuss issues related to the satellite casinos.
Analysts expect the government to use the half-year extension to prepare the bidding process for the up to six future concessions which will be newly granted and will not be mere renewals of the three concessions and three sub-concessions currently in
As of 12:30 a.m. today, four of Macau’s six gaming operators – Galaxy Entertainment Group (GEG), Wynn, SJM and MGM – had notified the media about their respective response to Lei’s remarks made in the afternoon. The companies said that they “support” the government’s decision to extend the expiration of their respective concessions or sub-concessions.
GEG statement
GEG said in an English-language statement received by The Macau Post Daily last night that it “welcomes this decision and fully supports all related work.”
The statement added that “GEG will prepare for the extension and the tendering process for gaming concessions, and work together as one for the many new opportunities ahead. GEG is truly grateful to the Macau SAR Government and the Legislative Assembly for their optimal efficiency and the great importance they attach to the bill. The bill provides greater clarity to the industry, paves the way to further facilitate its stable and healthy development as well as Macau’s economic diversification and sustainability. The active collaboration and support of various sectors of the community will also propel Macau’s positioning as “One Centre, One Platform and One Base”.
The statement quoted GEG Chairman Lui Che Woo as saying, “As a Chinese corporation deeply rooted in Macau, GEG has always upheld the principle of safeguarding both national and the Macau SAR’s security in our operations.
“As Macau is the root of GEG’s business, GEG plans to invest over 100 billion patacas in total in Macau, including nearly 50 billion patacas for the Phases 3 and 4 projects which are currently making excellent progress.
“Such investment demonstrates our long-term confidence and commitment to Macau.
“Our new projects in Cotai will have a strong focus on non-gaming elements, with the aim of introducing more innovative tourism products, restoring market sentiment and diversifying visitor sources in order to provide local residents and visitors with Macau-unique tourism experiences,” Lui said.
Secretary for Economy and Finance Lei Wai Nong talks to reporters on the sidelines of yesterday’s meeting of the legislature’s 2nd Standing Committee.
Lawmaker-cum-restaurateur Andrew Chan Chak Mo (right), who chairs the legislature’s 2nd Standing Committee, talks to reporters after the committee’s closed-door meeting yesterday reviewing the government’s gaming amendment bill, as the committee’s secretary, Lam Lon Wai, looks on. Photos: Ginnie Liang
