Gambling giant Macau opens bids from seven casinos, with one firm to lose

HWGG Entertainment

16/09/2022 24:00

HONG KONG, Sept 16 (Reuters) - Macau's government opens bids
on Friday from seven companies, including a wildcard from
Malaysian operator Genting, for licenses to operate casinos in
the world's biggest gambling hub, kicking off a closely watched
battle for six available slots. 
    Macau's top officials including the city's Economy and
Finance secretary, Lei Wai Nong and Secretary for Administration
and Justice, André Cheong, are due to attend the opening
together with heads of Macau casinos including Las Vegas Sands
 LVS.N  Macau unit Sands China  1928.HK , Wynn Macau  1128.HK 
and MGM China  2282.HK .
    All six incumbent Macau players, which also include Galaxy
Entertainment  0027.HK , Melco Resorts  MPEL.O  and SJM Holding
 0880.HK , submitted bids ahead of a deadline on Wednesday
together with GMM Limited, a holding company of Genting Group
Chairman Sri Lim Kok Thay, which does not operate casinos in
Macau. 
    GMM's application was seen as a surprise to many executives
and analysts, with some saying it posed extra uncertainty for
local operators.
    Genting would have been encouraged to apply and would be a
good fit given they are the only operator of the applicants with
a strong background in theme parks, said Ben Lee, founder of
Macau gaming consultancy IGamiX.
    "There is a chance they can topple one of the incumbents,
they (Genting) think so, too, otherwise they wouldn't have laid
out a HK$10 million ($1.27 million) buy in bet."
    Genting operates casinos in Singapore, Malaysia, the United
States and Britain and has extensive non-gaming operations -- a
key priority for the Macau government. It has also made a series
of investments in China, including a prime ski resort which
hosted the 2022 Beijing Winter Olympic games.    
    The sector has been reeling since the start of the COVID-19
pandemic, with revenues sliding 70% in 2021 to $10.8 billion
from $36 billion in 2019.
    Macau's new casino licenses are expected to begin in 2023
and are crucial for the six incumbents to keep operating their
multi-billion dollar properties. They have collectively invested
some $40 billion in Macau since casinos were liberalised more
than 20 years ago.
    All companies submitted their bids in person via two large
stacks of paper files, transported by trolleys, to the
government on Wednesday, according to footage from public
broadcaster TDM. They had to pay HK$10 million to apply. 
    The bidding comes as Macau casinos have been slammed by
ongoing COVID curbs and travel restrictions. Authorities have
also rigorously tightened control over gambling operations in
the former Portuguese colony via new legislation.
    The government is expected to review the proposals and
negotiate with the bidders before announcing six winners by the
end of November or early December, analysts said.
    When bidding, "special consideration should be given to
develop foreign tourist markets, experience in operating casino
games, investment in gaming and non gaming projects for Macau's
benefit, plans to manage the casino, plans to monitor and
prevent illegal activities and social responsibilities," a
statement on the government's website said.
 

($1 = 7.8478 Hong Kong dollars)

 (Reporting by Farah Master; Editing by Kim Coghill)
 ((farah.master@thomsonreuters.com; +852 3462 7709;))