Macau’s government has opened bids for gambling licenses from seven companies, one of which is a wildcard from Malaysian gambling giant Genting.
Decision expected by the end of the year
The seven applicants include the six incumbent casino operators, Sands China, Wynn Macau, MGM China, Galaxy Entertainment, Melco Resorts, and SJM Holding. Should wildcard Genting win one of the six available license, one of the existing casino operators will need to ceases gambling operations once its license expires.
Genting currently operates casinos in Malaysia, Singapore, the United Kingdom, and the United States and it’s believed the company’s experience with non-gaming operations such as theme parks could help its application to join the world’s largest gambling hub. The government has previously intimated that non-gambling operations are a key priority as it looks to shift the focus of tourism from gambling.
The Macau gambling industry has taken a big hit due to pandemic restrictions with casino debt expected to hit $25 billion (€25.1 billion) by the end of 2022. While other markets such as Las Vegas are reaping the rewards of a complete reopening of casinos, a recent wave of covid infections saw Macau place the island’s casinos and hotels on lockdown.
The companies submitted their bids to the government in person on Wednesday of this week and paid the $1.27 million (€1.29 million) application fee.
Despite the government encouraging Genting to make a formal bid, there are no plans to award an additional license. A negotiation process will now take place with all bidders and a final decision is expected before the end of the year.
The government has stated that the applicants must show:
“special consideration…to develop foreign tourist markets, experience in operating casino games, investment in gaming and non gaming projects for Macau’s benefit, plans to manage the casino, plans to monitor and prevent illegal activities and social responsibilities.”
In 2020, Genting began construction of a hotel located in the south of Macau’s peninsula which is expected to open later in 2022. The company and the government have both confirmed that this resort will open regardless of the casino license decision.
Based in London, Natasha is a former sports journalist with experience working for some of the biggest athletes & brands in the world of sports and iGaming.