The management of Macau casino concessionaire SJM Holdings is anticipating a 10-year term for new gaming licenses, with all six operators likely to have their licenses renewed following a re-tendering process expected to take place next year.
SJM’s comments were made during an investor meeting with Goldman Sachs in the wake of proposed amendments to Macau’s gaming law put out for 45 days of public consultation last week.
While those proposed amendments have caused some concern among investors, a Goldman Sachs report says SJM remains comfortable in how the SAR’s re-tendering process will play out and expects all six concessionaires to be issued new licenses.
The company also anticipates the government to follow through with a proposal to amend the current 20-year license term, suggesting a shorter 10-year term is “a reasonable estimate.”
SJM also rejected questions around the potential for mergers and acquisitions between concessionaires based on laws preventing companies from holding more than one license.
Macau’s DICJ held a face-to-face consultation with Macau’s six concessionaires and junkets on Monday where it addressed some operator concerns over proposed gaming law amendments, although it is expected to engage further with operators and the general public over the coming month.
Aside from the question of license terms, the proposed changes include additional capital requirements for concessionaires, an increased Macau local shareholding requirement, government permission to issue dividends and the placement of a government representative to supervise day-to-day operations of each concessionaire, possibly in a boardroom capacity.
