The Macau government has extended the gaming concession and sub-concession of SJM and MGM respectively by two years and three months until June 26, 2022, bringing them on par with the city’s two other gaming concessions and two sub-concessions.
The government announced the two extensions in a statement on Friday, followed by a press conference at Government Headquarters headed by Secretary for Economy and Finance Lionel Leong Vai Tac whose portfolio oversees Macau’s vitally important casino industry.
According to the statement, the SJM concession and MGM sub-concession were originally slated to expire in March next year. Based on the SJM’s request last month to extend its agreement, the government decided to extend it until June 26, 2022. MGM’s sub-concession was extended accordingly.
The statement indicated that the two extensions mean that Macau’s three gaming concessions and three sub-concessions will expire at the same time, which would benefit the government’s preparations for holding an international public tender for the granting of gaming concessions. According to the statement, this would also benefit social stability, namely in the labour market.
Based on the arrangement, Macau’s six gaming operators will be able to rebid for their concessions – or sub-concessions – at the same time before their respective agreements expire in June 2022.
The government has so far stayed mum on the rebidding process.
Reuters on Friday quoted Union Gaming analyst Grant Govertsen as saying he believed that the two extensions have more to do with the ultimate task of making the rebidding process easier, “while at the same time making sure the labour market remains stable”.
According to the extension agreement, SJM and MGM are required to pay a one-off fee of 200 million patacas each.
The two extensions had been widely expected.
Press conference
Leong said at the press conference that the post-June 2022 future of the local gaming industry would result from the outcome of the international public tender that the government was planning to hold.
Leong said that after the SJM-cum-MGM extensions, there was no need to carry out two separate tenders, considering that all the current concession and sub-concession agreements with the government will expire at the same time in June 2022.
Leong said last month that he might consider a bid for the post of chief executive later this year.
Addressing Friday’s press conference, Leong did not say when the international public tender will be held.
Chief Executive Fernando Chui Sai On (right), SJM Chairman Ambrose So Shu Fai (second from left) and SJM Managing Director and Chief Administrative Office Angela Leong On Kei sign the concession extension agreement at Government Headquarters on Friday. Photo: SJM Secretary for Economy and Finance Lionel Leong Vai Tac (centre), Government
Information Bureau (GCS) Director Victor Chan Chi Ping (right) and Gaming and Inspection Coordination Bureau (DICJ) Director Paulo Martins Chan pose during Friday’s press conference at Government Headquarters about the government’s decision to extend SJM’s gaming concession and MGM’s sub-concession from March next year to June 2022. Photo: GCS
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