Secretary for Economy and Finance Lionel Leong Vai Tac said in the legislature’s hemicycle yesterday that if the government revealed “prematurely” the details of its upcoming gaming concession bidding process in the run-up to the expiration of the city’s three gaming concessions and three sub-concessions, it would “adversely impact” the “healthy” development of Macau’s gaming industry in the future.
Leong, who oversees the city’s crucially important gaming industry, said that any “premature” announcement would allow other gaming destinations to adjust their gaming policies accordingly, which he said would make competition between Macau and other gaming hubs more “intense”.
Leong made the remarks when answering a question from directly-elected lawmaker-cum-unionist Leong Sun Iok, on the first day of a two-day Q&A session about his portfolio’s policy guidelines for next year.
Leong said in July that the government had not yet decided as to whether it would keep the current system of gaming sub-concessions.
Macau’s three gaming concessions and three sub-concessions will expire between 2020 and 2022.
The city’s six gaming operators are SJM, Wynn, Galaxy, Venetian, MGM and Melco. While SJM, Wynn and Galaxy are concessionaires, the Venetian, MGM and Melco are sub-concessionaires. The concession of SJM and its sub-concession MGM will expire in 2020, while the others will expire in 2022.
According to Law 16/2001 regulating the city’s gaming industry, which came into force in 2001, a maximum of three gaming concessions were to be granted.
According to the website of the Gaming Inspection and Coordination Bureau (DICJ), the government announced the results of the gaming concession bidding process and granted concessions to SJM, Wynn and Galaxy in early 2002.
In late 2002, the government allowed Galaxy to set up a subconcession relationship with the Venetian – by amending Galaxy’s concession contract, according to the bureau’s website.
Following the issuing of the first sub-concession, SJM and Wynn signed their own sub-concession deals in 2005 and 2006 respectively, SJM with MGM and Wynn with Melco, according to the bureau’s website.
According to Law 16/2001, a gaming concession usually cannot exceed 20 years.
Leong noted yesterday that, however, the gaming industry law allows the chief executive to extend gaming concessions for a maximum of five years under special circumstances.
Leong reaffirmed that once the gaming concessions and sub-concessions expire, a bidding process will be held rather than the government simply renewing the existing agreements.
Leong said that the government needed to be “cautious” about the right timing to announce its decision on the city’s upcoming gaming concession bidding process.
Leong said the government would take various factors into account when considering the city’s gaming sector development, such
as how the sector can become more competitive on the international stage.
Accompanied by officials under his portfolio, Secretary for Economy and Finance Lionel Leong Vai Tac (centre) addresses yesterday’s plenary session about his portfolio’s 2018 policy guidelines in the legislature’s hemicycle. Photo: GCS
