December 7, 2022

Filipino Guardian

Sentinels of Filipino Free Press

Macau casinos expected to invest around $12 billion over next 10 years – media

1 min read

Brenden Brain/CC BY-SA 3.0/Wikimedia Commons

HONG KONG – Macau’s casino operators, which are vying for a license in the world’s largest gaming hub, are expected to invest a total of around 100 billion patacas ($12.4 billion) over the next 10 years, local broadcaster TDM reported.

The seven contenders, including incumbents Sands China, Wynn Macau, Galaxy Entertainment, MGM China, Melco Resorts and SJM Holdings, as well as newcomer Genting Malaysia, are competing for six spots.

Galaxy and Sands can each invest more than 20 billion patacas, while the others will invest less than 20 billion patacas. In total, it will be around 100 billion, said TDM.

Negotiations with the Macau government are almost complete, the broadcaster said, and the bidders have agreed on what each of them intends to do for a new 10-year license term that begins in 2023.

Malaysian group Genting is a credible threat that could oust an incumbent operator in Macau for a new license, in what could trigger the biggest potential shock to the industry in more than two decades, analysts and executives say.

Macau’s six incumbent operators have operated in China’s SAR since 2002, with their current concessions expiring at the end of this year.

The bidding for new licenses comes as China’s “Dynamic Zero COVID” policy has hurt casino revenues for the past two years and despite some easing of travel restrictions for mainland visitors, gaming revenues are unlikely to increase in the near future, analysts say. – Reuters

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