HIGHLIGHTED POST
China – Macau demands minimum gross income from new concessions
By Lewis - 26 August 2022
Macau’s Official Gazette has released figures capping the number of gaming tables to 6,000 and gaming machines to 12,000 for new casino concession holders (link to gazette). In addition, the government has set minimum income levels for each operator. The minimum annual limit of gross income to be generated from each gaming table is seven million patacas ($866,122; and that of each gaming machine is 300,000 patacas ($37,120).
Under the revised gaming law, concessionaires will each have a minimum annual GGR target. If operators fail to meet the goal, they will be required to pay the Macau government the shortfall. It is the first time authorities have set a formal cap on the numbers of tables and a minimum income requirement.
With contracts set to expire at the end of the year, the territory’s six licensed operators must rebid for their spots. The bidding process commenced in July, when the government said global gaming operators could submit bids for new licenses from July 29 until September 14. It is expected that new concessions will being able to start from the beginning of January next year.
The rebidding takes place amid Macau’s worst outbreak of COVID-19, which led to a 12-day closure of casinos in July. Macau’s casinos are losing around $600m per month and are expected to have little to no income for months to come.
