Macau's Chief Executive promulgated six executive orders on 16 December 2022 granting new casino gaming concessions to MGM Grand Paradise, Galaxy Casino, Venetian Macau, Melco Resorts (Macau), Wynn Resorts (Macau) and SJM Resorts, the Gaming Inspection and Coordination Bureau (DICJ) said1. The concession contracts were signed the same day and take effect on 1 January 2023 for a term of 10 years1.
The orders were numbered 218/2022 through 223/20221. The contracts were then awarded on a definite basis3. Genting Malaysia-linked bidder GMM Limited did not secure a concession3.
The six awardees pledged combined investment of MOP118.8 billion (US$14.8 billion), of which MOP108.7 billion is for overseas customer markets and non-gaming projects and MOP10.1 billion for gaming investment, according to a government press release cited by Macau Business3. Non-gaming spending is therefore 10 times the gaming figure3. The government said the award rested on three criteria: stability of local employment, overseas market development and non-gaming offerings3.
The DICJ set out the framework the concessions sit inside. The revised gaming law, passed by the Legislative Assembly on 21 June 2022 and published as Law No. 7/2022 on 22 June 2022, allows up to six casino concessions1. Concessionaires must be incorporated in Macau, hold minimum share capital of MOP5 billion and have a Macau permanent resident as managing director holding at least 15 percent of share capital4. A special gaming tax of 35 percent applies to gross gaming revenue, alongside an annual premium with a fixed portion of MOP30 million and variable portions as follows4:
The current concessions are scheduled to end on 31 December 2032, with possible extension of no more than three years in total4.
"The Macau SAR government today (Friday) signed the official 10-year gaming concession contracts with each of the six gaming concessionaires."
What it means for players
The operators running Macau's casinos are unchanged. The same six companies that held concessions and sub-concessions before the tender hold the new ones, so the properties, games and casino floors a visitor or resident sees in Macau are not affected by the change of contract. Macau remains the only place in China where casino gambling is legal4. Games of fortune and chance can only be operated in places and premises authorized by the chief executive4. The minimum age for working in casinos is 214. Self-exclusion and third-party exclusion measures run for two years, and family members within the second degree of kinship by blood may ask the DICJ to exclude a problem gambler4. There is no publicly available list of excluded persons, though operators can access the DICJ list4. The 35 percent special gaming tax on gross gaming revenue is unchanged in the sources4.
What happens next
The contracts run from 1 January 2023 and are scheduled to end on 31 December 20324.
Over the 10 year term the six operators are to develop non-gaming projects across 10 areas, including convention and exhibition business, entertainment and performances, sports events, culture and art, healthcare and themed amusement3. The government said it will continue to supervise gaming operations and follow up on the fulfilment of the operators' investment projects2.
Sources4 sources
- Gaming Inspection, and Coordination Bureau. Macao SAR, dicj.gov.mo
- 澳門特別行政區 政府博彩監察協調局, dicj.gov.mo
- Gov’t, ‘Big Six’ ink new gaming concession contracts, MOP119 bln investment pledged | Macau Business, macaubusiness.com
- Q&A: land-based gambling in Macau - Lexology, lexology.com
