The government yesterday formalised the extension of Macau’s three gaming concessions and three sub-concessions, which enables the six operators to continue running their casinos until the end of the year.
According to a government statement, the amendment agreements on the extension of the city’s three gaming concessions and three sub-concessions were signed yesterday afternoon at Government Headquarters by Chief Executive Ho Iat Seng, first with the representatives of the three gaming concessionaires (SJM, Galaxy and Wynn) and right afterwards with the representatives of the three sub-concessionaires (Sands, Melco and MGM). Officials of the Gaming Inspection and Coordination Bureau (DICJ) attended the signing.
The original version of the “Legal Framework for the Operations of Casino Games of Chance”, also known as the gaming law, stated that the gaming concessions would be allowed to extend their operations one or more times before their expiry, which in this case was slated to take place this Sunday, June 26.
An upcoming bidding process will result in the government granting up to six gaming concessions. The timetable for the bidding process has still to be announced by the government.
The amended gaming law specifically bans the granting of sub-concessions in the future.
Therefore, according to the statement, the government approved this particular extension to allow for a smooth transition ahead of the bidding process for the up-to-six new gaming concessions, Under the terms of the concession amendment agreements, the six operators are each required to pay a special premium of 47 million patacas to the government for the half-year extension.
In addition, the government has also required the six operators to set up a fund within three months covering any payments that might be due to their employees, which is aimed to protect the workers’ rights, and to maintain the stability of the city’s job market, the statement said.
The agreement stipulates, according to the statement, that once a gaming concession or sub-concession is revoked by the government, all the casino premises of the respective concessionaire, together with its gaming tables, slot machines and other equipment, will revert to the government, to ensure that the future gaming concessionaire will be able to use the respective casinos and gaming equipment.
Legal sources pointed out that during the extension until the end of the year the six operators will run their casinos under the original version of the gaming law, which dates back to 2001, although the new version officially took effect yesterday.
Operators welcome concession extension deals
Macau’s six gaming operators welcomed yesterday’s concession amendment agreements in separate statements received by The Macau Post Daily last night.
Galaxy Entertainment Group (GEG) said that it will continue to contribute and propel the sustainable and healthy development of Macau’s gaming industry.
Concerning its two satellite casinos which recently ceased operating, namely Rio Casino and President Casino, GEG said that it would relocate their respective staff members to its other casinos while maintaining all of their employment terms, adding that the operation of its Waldo Casino will remain in operation until the end of the year.
Melco Resorts & Entertainment said it looks forward to participating in the forthcoming public tender for a future gaming concession, and will continue to assist the government in promoting economic diversification to further strengthen Macau’s position as a world centre of tourism and leisure.
Melco also said that the operation of its Grand Dragon Casino will continue beyond Monday, June 27, with its employees continuing to be fully engaged.
MGM China Holdings Limited said that it will make every effort to obtain a new gaming concession in the upcoming bidding process, and also will continue to support the government in safeguarding national security for the healthy and orderly development of the gaming industry and to contribute to the promotion of economic diversification.
Sands China Ltd. said that it is grateful to the government for its trust and support, pledging that it will continue to take the lead in assisting in the steady recovery of Macau’s tourism and gaming industry.
Sands added that it will fully cooperate with and support the government’s anti-pandemic efforts at this critical moment in the COVID-19 fight.
SJM quoted its Chairperson Daisy Ho Chiu-fung as saying that it welcomes the concession extension, adding that the company is moving ahead on all fronts preparing to participate in the tender for a new concession, looking forward to continuing to contribute to the development of Macau in the future.
Wynn said that it would like to express its sincere gratitude to the government for this guidance during the concession extension process, adding it believes that the concession extension agreement will enable it to make continued contributions to the future development of Macau and the local community.
This handout photo provided by the Macau Government Information Bureau (GCS) shows Chief Executive Ho Iat Seng (right) signing the concession amendment agreement with SJM representatives Angela Leong On Kei (centre) and Rui Cunha.
