Executive Council: Six 10 Year Casino Licenses for Macau
The Macau Chief Executive’s advisory council has announced a framework for a government bill that will let for new licensing of the former Portuguese enclave’s casino going forward. The present licenses are set to expire in June and are of 20-year duration. Half of the existing operators gained concessions beneath a sort of loophole that allowed them to obtain sub-licenses from those who won the first tender. Sub-licenses are not going to be component of the new licensing regime’s make-up.
Six ten-Year Licences
Melco, MGM, and Sands‘ Macau units were properly operating beneath original concessions granted to Wynn Macau, SJM Holdings, and Galaxy Entertainment Group Ltd. Going forward they will be in a position to compete for their own ten-year licenses with a provision for a 3-year extension. Six licenses will be tendered in all.
Even though the bill will be sent to the Macau Legislative Assembly for a vote quickly, there is no way to know how long that action will take due to numerous variables. The Assembly can modify provisions of the bill and earlier statements indicated that the government may insist on a revamp of the city’s gambling law as a parallel or contingent situation to a new public tender.
GGRAsia is reporting that the government may possibly be prepared to extend the current concessions if required for a total review.
New Ownership and Share Capital Thresholds
Ownership in the businesses will need to adjust to some degree below the present operating bill sent to the Legislative Assembly for feasible revisions and a vote. At least 15% of the share capital wants to be held by a Macau permanent resident who would be a managing director of the entity. Also, a maximum of 30% of the firm’s shares would be permitted to be listed publicly. A press release from the Executive Council is stated to have stated that the share distribution would generate a much more steady partnership in between the firm and the Macau government.
The minimum essential share capital would also require to increase 25-fold from the existing MOP200-million minimum threshold to MOP5 billion (US$625 million) reflecting two decades of growth and a much higher bar for severe contenders.
In the current previous, the government has mentioned that firms of all nations would be treated equally as lengthy as they meet all of the criteria.
The tax regime is not expected to change from the current 35% levy on gross gaming income nor is there any indication of alterations to other various taxes and costs that outcome in a de facto 39% tax price.
Supply: Macau to have 6 casino licences, lasting ten years: govt bill, GGRAsia, January 14, 2022