Melco Resorts Chairman and CEO Lawrence Ho says the company has already submitted its application to the Macau SAR Government to have its casino concession extended by six months.
It was only a little more than a week ago, on 10 March, that Macau’s Secretary for Economy and Finance, Lei Wai Nong, announced that the six casino gaming operators would have their concessions extended from the former expiry date of 26 June 2022 to 31 December 2022. The extension allows the government additional time to pass a revised gaming law and conduct a re-tendering for casino concessions.
Speaking with Chinese-language media at an event on the weekend, Ho confirmed that Melco has already submitted its application and expected that most other operators would have done the same.
However, he also was also quick to note that market conditions remain challenging due to the COVID-19 pandemic – perhaps referencing reports last week that concessionaires will be required to pay between MOP$50 million and MOP$80 million (US$6.2 million and US$9.9 million) to extend their concessions.
Ho said gross gaming revenues during the first few months of 2022, which included Chinese New Year, remain subdued at between 20% and 30% of 2019 levels. Although Ho expressed his opinion during the recent “Two Sessions” meetings in Beijing that the mainland should look to ease visa restrictions with Macau to allow greater ease of travel, he added that he was mentally preparing for another tough year in 2022.
Melco recently reported a net loss of US$159.9 million in 4Q21, with operating revenues down 67% over the same period in 2019 to US$480.6 million.
