The Macau Jockey Club (MJC) revealed Monday that it had accumulated losses totaling MOP$2.5 billion (US$310 million) before reaching an agreement with the Macau government to terminate its 24-year horse racing concession.
At a press conference held just hours after Macau’s Chief Executive revealed an end to the concession signed in 2018, the MJC confirmed it would suspend all races and end its race-related operations on 1 April 2024. Present at the press conference were Rui Cunha and Kong Ieong – directors of MJC operator, Macau Horse Racing Company Ltd – who read a statement in Portuguese and Cantonese respectively.
They explained that the MJC had consistently adhered to the principles of “diversification of gaming” and “racing of horses” to support the continuous development of Macau’s tourism industry and fulfil its social welfare obligations.
“But Macau Horse Racing Company Ltd has been operating at a loss, accumulated in excess of MOP$2.5 billion,” they said.
“Moreover, there has been limited room for development and growth of the horse racing industry in Macau over the years, and with the adverse effect brought about by the pandemic over these last three years, it has become increasingly difficult to sustain the operations.
“The Board of Directors has had to make a difficult decision, and commencing from 1 April 2024, the company will cease all racing related operations. However, the current member facilities will remain available to the Club’s members.”
The MJC added that it would conduct necessary briefing sessions for staff, provide assistance and job referrals, and comply with the provisions of Macau’s labor laws to provide appropriate compensation.
“To all horse owners and members, Macau Horse Racing Company Ltd deeply appreciates and sincerely thanks you for your ongoing support,” it said.
“In due course, we will provide the specific details and communicate with all owners regarding the necessary arrangements for their horses that will be adhered to on or before 31 March 2025, in accordance with the relevant Laws and Regulations.”
The MJC, previously known as the Macau Trotting Club, was transformed into its current form via the introduction of flat-racing in 1989. It was acquired two years later by a consortium led by Dr Stanley Ho as part of a restructuring designed to overcome financial concerns.
In 2018, despite continuing to accruse considerable losses, the MJC signed a new concession to run for 24 years and six months but with the stipulation that it must raise its registered capital to MOP$1.5 billion by the end of 2023 and complete a comprehensive investment program regarding its facilities.
Among the investment criteria the MJC completed were:
- Refurbishment of the horse swimming pool, to be completed on or before 3 May 2018;
- a major refurbishment of the stables, to be completed on or before 31 December 2019;
- renovation of the first floor of the race building, to be completed on or before 31 December 2018;
- Renovation of the second through fifth floors of the race building, to be completed on or before 31 December 2019;
- Work to replace the computer system, to be completed on or before 31 December 2021;
- Work to improve the racetrack, to be completed on or before 31 December 2021.
However, as of Monday’s concession termination agreement, the MJC had yet to complete a series of far larger tasks, including:
- Construction of public seating, car parks, pedestrian atriums, food and beverage and retail outlets, carparks and loading and unloading areas (Area 1), to be completed by 31 December 2024;
- Construction of two hotels, two apartment buildings and tennis courts (Area 1), to be completed on or before 31 December 2026;
- The construction of membership facilities, VIP rooms, food and beverage and retail outlets, covered green areas, office buildings, car parks and loading and unloading areas (Area 2), to be completed on or before 31 December 2025;
- Construction of facilities associated with a horse theme park and a riding school (Area 3), to be completed on or before 31 December 2026;
- Work to provide direct access to Area 1 from the light rail station on Rua do Governador Albano de Oliveira and to locate the main public entrance to Area 1 (Area 4), to be completed on or before 31 December 2024
- Construction of an additional public entrance near the East Gate (Area 4), to be completed on or before 31 December 2026.
The Macau government confirmed during a press conference of its own that it would not continue horse racing in any form and that no other gaming activities on the land upon which the MJC currently sits. That land will, once the MJC shuts down, be returned to the Macau SAR Government.
