According to TDM Portuguese Radio, the Macau public tender commission has reached an agreement with companies bidding for a new 10-year gaming concession to invest a combined MOP$100 billion (US$12.5 billion) during the concession period.
TDM reports that the parties reached a consensus on expected investment at a meeting on Friday, with market share leaders Galaxy Entertainment Group and Sands China to each invest more than MOP$20 billion (US$2.5 billion). The other companies will invest closer to MOP$15 billion (US$1.88 billion), taking the combined total to a little over MOP$100 billion.
According to TDM, the government’s main concern is investment in non-gaming elements, while concessionaires will be expected to continue supporting local events like the Macao Grand Prix, music festivals and bringing international acts to Macau. There are also plans to open museums.
However, as the government has stated it will not grant any new land for the development of gaming facilities, concessionaires will need to continue developing their existing facilities in the future.
The concessionaires are of the view that a combined investment of MOP$100 billion over 10 years is a reasonable figure, TDM said.
The President of the Macau Responsible Gaming Association, Song Wai Kit, also stated, “The amount of MOP$100 billion over 10 years is reasonable, with the concessionaires investing around MOP$10 billion each year, but this is an investment plan and if there are changes in the investment environment in Macau in the future, the concessionaire will definitely discuss with the government whether the amount should be adjusted.
“However, the concessionaires have already invested a lot in the past and the new concessions will only be granted for 10 years, so the concessionaires can only invest in the existing facilities, basically not in infrastructure, and only in non-gaming elements, so MOP$10 billion per year is quite sufficient.”
