Gaming operators Melco Resorts & Entertainment, SJM Holdings and MGM Resorts International are set to apply for a temporary license extension in Macau, the three giants confirmed this week. The government announced last week concessionaires would be permitted to apply for an extension valid until December 31, 2022.
The companies confirmed their intentions to Macau Daily Times, expressing they were keen on applying for a temporary license extension. Sands China Ltd. and Galaxy Entertainment Group had also confirmed they would be filing an application to the cited news source. Wynn Macau would seem to be the only concessionaire to not have responded to Times.
Commenting on the government’s decision to allow for a temporary license extension, all five companies either said they welcomed or supported the plan. Licenses were originally set to expire by June 26: an extension would provide gambling licensees with six additional months as the world’s largest gaming hub works on amendments to its gambling law.
The plan was confirmed last Thursday by Secretary for Economy and Finance Lei Wai Nong, who told the press that the government was planning to extend the validity of all current licenses to the end of 2022. However, the extension is not automatic: permit holders will need to undergo a reapplying process of which not much is known yet.
The announcement was made after a Legislative Assembly (AL) meeting of the standing committee, which is currently reviewing the proposed gambling amendments. According to Lei, should the AL approve the draft law by June, the government would be able to start work required for the concession retendering process in H2 this year.
However, a specific date for when the government will launch the public tender has not yet been provided. The Secretary for Economy and Finance said authorities were confident they could complete the gaming law amendment process before June 26, the former expiration date of the current concessions, and launch the tendering process after that.
Lei further stated on Thursday government officials have already notified gaming operators “to prepare for the extension application.” The Secretary did not respond whether the government would be willing to extend concessions again in December should either the legislative or the tendering processes be delayed.
Secretary for Economy and Finance Lei Wai Nong
An extension to licenses was already proposed amid the debate of the new gaming law. Chan Chak Mo, president of the standing committee, had suggested the government could extend the permits for another year, although officials agreed on half that time. It is unsure yet how much concessionaires will have to pay the Macau government for their six-month extensions.
The draft bill sets a maximum of six gaming concessions -the same number of operators already in the market- that last for up to ten years each. A 3-year extension may be granted should officials find it suitable “under exceptional circumstances.” It is expected the six current concessionaires might retain their permits, winning a new 10-year concession.
Last Friday, new details about other proposed amendments surfaced as Chan detailed both a national security clause in the bill and the future of “satellite casinos” -gambling facilities that are not located in premises owned by gambling concessionaires- under the new law to local media.
Original article: https://www.yogonet.com/international/news/2022/03/07/61674-macau-major-operators-to-apply-for-temporary-license-extension-amid-gaming-law-amendment
