Macau's Chief Executive published an executive order in the Official Gazette on July 28, 2022 setting the bidding period for the city's new casino concessions from July 29 to September 14, with six concessions to be issued and the concession period capped at 10 years1. The current six concessions and sub-concessions expire at the end of this year, after a six-month extension granted in June so the government had more time to prepare the tender1.
Secretary for Administration and Justice André Cheong Weng Chon, who heads the commission running the tender process established the previous day, said the government would treat existing operators and other bidders equally, with no preference given to incumbents1. He also said the government might not grant all six concessions if fewer than six bidders meet its requirements1. Adriano Marques Ho, director of the Gaming Inspection and Coordination Bureau, is secretary of the eight-strong commission1.
"The SAR Government will evaluate whether the bidders match the requirements of qualification, financial capabilities, non-gaming pledges, expanding overseas markets and others, and may not award all six concessions."
Bids will be assessed against seven criteria: the premiums proposed; plans to explore non-Chinese markets; experience in casino gaming and related fields; the benefits of gaming and non-gaming investments; casino management plans; proposals for overseeing and preventing illicit activities in casinos; and social responsibilities1. The bidding window runs 48 days, compared with 33 days two decades ago, when 21 companies and conglomerates submitted bids1.
Under contracts signed with the six existing operators last month, 19 casinos directly owned by the concessionaires and sub-concessionaires revert to the government "without any cost" by year-end, and the government will lease those facilities to the winning bidders1. Cheong said any newcomer "has no excuse to say it is not ready to operate" on January 1, 2023 if it wins1. Satellite casinos, owned by third parties under existing concessions, do not revert and can keep operating next year if they meet government requirements and reach deals with new concessionaires; Cheong said their number "will not increase but only decrease in the future"1.
The tender opens as Macau deals with its worst community Covid-19 outbreak since the pandemic began, including a 12-day casino closure this month and quarantine requirements for visitors arriving from outside mainland China1. Cheong said the outbreak would not significantly affect bidder interest1.
What it means for players
Macau's casino licensing framework is being rebuilt from the ground up, and the outcome decides which operators hold concessions from January 1, 2023. Until the new concessions are signed, the current operators continue under their extended terms. The 19 government-owned casino premises will be leased to winners, so the venues players know can stay open under different management. Satellite casinos face an uncertain future: they can continue only if they meet government requirements and strike deals with new concessionaires, and the government says their number will only fall. The seven evaluation criteria, including non-gaming investment and non-Chinese market plans, signal where the government wants the industry to go, though no source states how this changes day-to-day play. Anyone planning a Macau trip should note the pandemic restrictions in force at the time of the announcement, including the 12-day casino closure and quarantine rules1.
What happens next
Cheong said the government is confident it can finish evaluating bids, finalize the list of new concessionaires, complete contract negotiations and sign contracts before the end of this year, so new concessionaires can operate from the start of next year1. The bidding period closes on September 141.
