On June 23, the Information Bureau of the Macau SAR Government of China announced that the Macau SAR government has decided to approve the application of six gaming companies to extend the operation period of casino games of fortune until December 31, 2022, and signed the revised contract on the same day.
Macau's six casino licenses will expire on June 26.According to the original sub-license system of Macau gaming operations, Sands China, MGM and Melco International operate under the full franchise of Galaxy Entertainment, SJM Holdings and Wynn Macau respectively.To put it simply, the licenses of Galaxy Entertainment, SJM Holdings and Wynn Macau are the "real licenses", while the licenses of Sands China, MGM and Melco International are the "secondary licenses".
On the afternoon of June 23, the Chief Executive of the Macau SAR Government, Ho Iat Seng, on behalf of the SAR government, had a joint venture with Macau Entertainment Integrated Resort Co., Ltd. (the majority shareholder of SJM), Wynn Resorts (Macau) Co., Ltd. and Galaxy Casino Co., Ltd. On behalf of, signed the contract for the modification of the concession contract for the operation of casino games of luck in the Macau Special Administrative Region.Subsequently, witnessed by the representatives of the Gaming Inspection and Coordination Bureau, the above three companies signed the casino lucky draw with representatives of MGM Grand Paradise Co., Ltd., Melco Crown (Macau) Co., Ltd. and Venetian Macau Co., Ltd. Amendment Contracts for Gaming Operations Sub-Contracts.
In this way, the operating licenses of the six gaming companies will be extended to December 31 this year, and each gaming company needs to pay an additional one-time premium of 47 million patacas to the Macau SAR government.At the same time, each gaming company will also set up labor debt guarantee funds for employees within 3 months after signing the contract to provide protection for employees.
It is worth noting that, in accordance with Law No. 16/2001 "Legal System of Casino Lucky Gaming Operation" (hereinafter referred to as "Gaming Law") No. 7/2022 According to the No. 1 law, the "secondary license" system will be abolished, but the number of grants (that is, the number of licenses) to operate casino games of fortune is at most 6, and the grant period is not more than 10 years, which can be extended for up to 3 years in exceptional cases .
The Information Bureau of the Government of the Macao Special Administrative Region of China pointed out that the SAR government will further implement the mechanism of Law No. 16/2001 on the ownership of the casino and all its equipment and appliances after the revocation of the contract, so that the new term will be Casino game of fortune operators can continue to use existing gaming facilities, ensuring a seamless transition between old and new operating concessions.
On June 24, the stocks of 6 Macau gaming companies rose across the board.As of press time, Sands China Ltd. (01928.HK) rose 2.87%; Wynn Macau (01128.HK) rose 4.36%; SJM Holdings (00880.HK) rose 3.96%; Galaxy Entertainment (00027.HK) rose 2.58%; MGM China (02282.HK) rose 4.59%; Melco International Development (00200.HK) rose 2.81%.
