Macau Regulators Receive Initial Proposal To Amend Existing Gaming Laws
Macau has long held the top spot for being the biggest gambling hub in the world but things are changing at a fast pace in the global gaming industry and Macau’s casino market could be under threat as Japan looks to launch its own casino industry and lure Chinese VIP gamblers over to their integrated casino resorts.
The Japanese casinos are expected to open only after 2022 but Macau knows that it will have to start making changes quickly in order to prepare for the competition and cement its place as the number one gambling hub in the world.
Macau currently has six major casino operators who are licensed to operate and they run a number of casino resorts under their gaming licenses. These gaming licenses are set to expire in 2020 for some of them and 2022 for the remaining operators. There have been talks in the past that Macau’s gaming regulator could open up the market further by allowing new licenses to be issued.
Macau which derives a significant portion of its revenue from the casino industry is under pressure to revise its Macau Gaming Law (Law 16/2001) and make things more flexible for casino operators. A preliminary proposal to amend these existing gaming laws have already been submitted and will be reviewed by the Macau regulator.
In a statement, Lionel Leong Vai Tac, the Secretary for Economy and Finance said
We’ve said before that the awarding of the gaming concession contracts when the current ones expire via a bidding process, and the related law needs to be amended as well. We are now having an internal study on it
Strong Competition Expected For New Licenses
The Macau government will have to make key decisions in the coming months that will impact and influence the future of Macau’s casino industry in the next few years. One of those key decisions will be in determining the number of new licenses that will be issued.
The competition for these potential new licenses will be fierce and if a bidding process is launched, then casino operators will be prepared to shell out exorbitant sums of money to gain access into Macau.
SunCity Group which is one of the major junket operators in Macau is very keen to get a casino license and will be one of the firms willing to invest heavily to establish its presence as a casino operator in Macau.