Macau casinos expected to invest around $12 billion over next 10 years -media
Reuters
Published Nov 13, 2022 09:08PM ET
HONG KONG (Reuters) - Macau casino operators, vying for a licence in the world's biggest gambling hub, are expected to invest a total of around 100 billion patacas ($12.4 billion) over the next 10 years, local broadcaster TDM reported.
The seven applicants, which include incumbents Sands China (OTC:SCHYY), Wynn Macau (OTC:WYNMF), Galaxy Entertainment, MGM China (OTC:MCHVY), Melco Resorts and SJM Holdings (OTC:SJMHF), as well as new entrant Genting Malaysia, are competing for six slots.
Galaxy and Sands may invest more than 20 billion patacas each, while the others will invest less than 20 billion patacas. Altogether the total will be around 100 billion, TDM said.
Negotiations with the Macau government are almost complete the broadcaster said, with the bidders having reached agreement about what each of them proposes to do over new 10-year licence term which begins in 2023.
Malaysian group Genting is a credible threat that could unseat an incumbent Macau operator for a new licence, prompting the industry's biggest potential shakeup in more than two decades, analysts and executives say.
The six Macau incumbents have operated in the Chinese special administrative region since 2002, with their current concessions expiring at the end of this year.
The bidding for new licences comes as China's "dynamic zero COVID" policy has hammered casino revenues over the past two years, and despite some relaxation of travel restrictions for mainland visitors, gambling revenue is unlikely to pick up in the near term, say analysts.
($1 = 8.0740 patacas)
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.