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Macau limits new casino licences to 6, to last up to 10 years -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – Traffic passes gaming resorts on Macau’s Cotai Strip, China May 15, 2018. REUTERS/Bobby Yip

By Farah Master

HONG KONG (Reuters -Macau’s government announced Friday that there would only be six casino operators permitted to open in Macau, the country’s biggest gambling hub. They will allow them to have an operating time of up to ten year.

Analysts, casino executives and investors had been anticipating the announcement. It ends any fears that the government might change the status quo regarding the number of Chinese-controlled operators.

These are the licences for six Macau operators Wynn Macau (OTC :), Sands China, MGM China (OTC :), SJM Holdings(OTC :), Galaxy Entertainment, Melco Resorts are all scheduled to expire June 2012.

According to the government, all potential and existing operators should apply via a new tender process. A notice published on the government’s website did not provide details about when bidders will need to be registered or whether their current license terms will be extended.

The capital requirement of casino operators should be increased to $5 billion ($623.67million) instead of $200 million. Additionally, the Macau-based directors of companies must have 15% of their current 10%.

In terms of the amount wagered, this former Portuguese colony is world’s largest gambling hub.

($1 = 8.0170 patacas)

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