GAMING: Casino operator concessions “most likely to be renewed”, experts say

2014-2-21

From：Macau Daily Times

Gaming experts have ruled out the possibility that the validity of casino licenses in Macau could be subject to renewal every five or ten years, as Hong Kong newspapers reported on Wednesday.
According to a South China Morning Post article, experts have made assurances that gaming licenses held by the six casino operators in Macau will “most likely be consistently renewed, rather than facing renewal every five to ten years.”
Gaming research analyst Richard Huang recalls having heard such “rumors” in the past as well. He explained that “there is a clause concerning how the licenses will be renewed, which says that if there are no disputes on either side, the licenses can be automatically renewed for the following five years” and that’s what might have triggered the “rumors.”
Hong Kong newspapers reported on Wednesday that, after 2020, the six casino operators would need to renew their licenses every five to ten years, as Beijing was planning to use them as “as a tool to gain leverage in Sino-US relations.”
Three of the gaming operators (Wynn, Sands and MGM) are held by American enterprises. Melco Crown Entertainment is a venture between Lawrence Ho Yau-lung and an Australian, James Packer. The remaining two are SJM, held by Stanley Ho, and Galaxy Entertainment, owned by Lui Che-woo. Apart from SJM and MGM, who need to renew their licenses in 2020, the other operators will be doing the same in 2022.
Huang stated that government officials seem to be satisfied with the gaming operators’ performances, since Macau’s economy is amongst the fastest growing economies in the world.
Professor Niu Jun, a teacher at Peking University’s School of International Studies, recognized that the idea of using gaming licenses as leverage in bilateral relations with the US was “just possible.” At the same time, he commented that “this is a very small issue in the eyes of Beijing.” “There’s no point finding trouble here,” he added.
Lead analyst at Macau-
based Union Gaming Research, Grant Govertsen, also said that he was not too concerned about the issue, dubbing it as “pure and reckless speculation.” He concluded by saying that if such a policy was to be implemented it might “discourage investment in Macau.”

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