By Ben Blaschke
The Secretary for Economy and Finance, Mr Leong Vai Tac, has confirmed that the government will consider amending the terms and conditions surrounding renewal of gaming licenses for Macau’s concessionaires, opening the door for a potential seventh operator to join the party.
Speaking to reporters on Monday, Mr Leong said the government was currently listening to a wide range of opinions regarding refreshment of gaming rights for the city’s current gaming concession and sub-concession holders, adding that it needed to cautiously assess the situation to ensure a healthy and orderly development of the sector.
The concessions and sub-concessions of all six operators expire between 2020 (SJM and MGM) and 2022 (Galaxy, Sands China, Wynn and Melco Resorts).
Mr Leong’s comments follow a similar prediction by Professor Davis Fong, Director of the Institute for the Study of Commercial Gaming and Associate Professor of the Hospitality and Gaming Management Program at the University of Macau, who raised the possibility of a seventh concessionaire in a recent interview with Inside Asian Gaming.
“I think from a society perspective we will welcome everybody who can help Macau achieve the World Centre of Tourism and Leisure,” Professor Fong told IAG. “But one point is very clear – it’s not just a proposal. Whether they are visible, whether they have potential background or historical records to prove to society that okay, they are not the six (concessionaires), however they can help achieve the next level.
“I think society will welcome everybody who can help Macau achieve this new position.”
Union Gaming analyst Grant Govertsen said late Monday that he “would not be too surprised” to see a seventh concessionaire in Macau, noting that Mr Leong had been careful to use the word “rebid” rather than “renew”.
“We believe this is intentional,” Govertsen said. “We also believe that it doesn’t necessarily mean there will be a competitive public tender where other international operators have a to participate in Macau.
“In fact, the secretary importantly noted that the government is still analyzing the situation and that all options are still under consideration although there have been no decisions made.
“We believe there has always been a process in place where the gaming licensees would need to reapply (aka rebid) for their licenses rather than simply be handed a renewal.
“Ultimately, and in the context of there being no free pass, we think the government intends to (rightly) exert pressure on the Macau Big 6 in order to keep them moving in the right direction, namely towards the overarching goal of diversification.
“Further, we continue to believe that all of the Big 6 will remain the licensees going forward although we would not be too surprised if they were joined by the formal addition of a 7th licensee.”
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