Gambling giant Macau opens bids from seven casinos, Genting a wildcard

HONG KONG, Sept 16 (Reuters) – Macau’s authorities opened bids on Friday from seven corporations, together with a wildcard from Malaysian operator Genting, for licenses to function casinos on the earth’s greatest playing hub, kicking off a intently watched battle for six out there slots.

Macau’s high officers together with town’s Financial system and Finance secretary Lei Wai Nong and Secretary for Administration and Justice André Cheong attended the opening along with high executives from Macau casinos Las Vegas Sands (LVS.N) Macau unit Sands China (1928.HK), Wynn Macau (1128.HK) and MGM China (2282.HK).

All six incumbent Macau gamers, which additionally embrace Galaxy Leisure (0027.HK), Melco Resorts and SJM Holding (0880.HK), submitted bids forward of a deadline on Wednesday along with GMM Restricted, a holding firm of Genting Group Chairman Sri Lim Kok Thay, which doesn’t function casinos in Macau.

GMM’s software was seen as a shock to many executives and analysts, with some saying it posed additional uncertainty for native operators.

Genting would have been inspired to use and could be a great match given they’re the one operator of the candidates with a powerful background in theme parks, stated Ben Lee, founding father of Macau gaming consultancy IGamiX.

“There’s a likelihood they will topple one of many incumbents. They (Genting) suppose so, too, in any other case they would not have laid out a HK$10 million ($1.27 million) purchase in guess.”

Genting operates casinos in Singapore, Malaysia, america and Britain and has in depth non-gaming operations — a key precedence for the Macau authorities. It has additionally made a sequence of investments in China, together with a main ski resort which hosted the 2022 Beijing Winter Olympic video games.

The sector has been reeling because the begin of the COVID-19 pandemic, with revenues sliding 70% in 2021 to $10.8 billion from $36 billion in 2019.

Macau’s new on line casino licenses are anticipated to start in 2023 and are essential for the six incumbents to maintain working their multi-billion greenback properties. They’ve collectively invested some $40 billion in Macau since casinos have been liberalised greater than 20 years in the past.

All corporations submitted their bids in particular person through two massive stacks of paper recordsdata, transported by trolleys, to the federal government on Wednesday, in response to footage from public broadcaster TDM. They needed to pay HK$10 million to use.

The bidding comes as Macau casinos have been slammed by ongoing COVID curbs and journey restrictions. Authorities have additionally rigorously tightened management over playing operations within the former Portuguese colony through new laws.

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The variety of awarded licenses is not going to change from 6, Justice Secretary Cheong stated forward of the bid opening. The federal government will evaluation the proposals and negotiate with bidders earlier than saying the winners earlier than the tip of the 12 months, he stated.

Analysts count on outcomes to come back by finish of November or early December.

For the bids, corporations should present “particular consideration…to develop international vacationer markets, expertise in working on line casino video games, funding in gaming and non gaming tasks for Macau’s profit, plans to handle the on line casino, plans to observe and forestall unlawful actions and social duties,” in response to an announcement on the federal government’s web site.

Genting Malaysia confirmed its oblique subsidiary GMM submitted a bid to the Macau authorities in an announcement to the Malaysian inventory trade on Sept. 15.

The transfer is a chance to “develop its enterprise within the leisure and hospitality sector, diversify its geographical footprint and take part within the restoration prospects” in Macau.

Genting utilized for a Macau license greater than 20 years in the past however was not profitable. Since 2020 it has begun building on a resort within the south of Macau’s foremost peninsula. It’s slated to open later this 12 months.

Genting will nonetheless be capable of function its resort resort even when it doesn’t win a brand new on line casino license, in response to Macau legal guidelines.

($1 = 7.8478 Hong Kong {dollars})

Reporting by Farah Grasp; Modifying by Kim Coghill

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