• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Features
  • Industry Talk
  • Trends & Tech
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Doubts over Macau licensing deterring investment: IMF

Oct 23, 2019 Newsdesk Latest News, Macau, Top of the deck  


Doubts over Macau licensing deterring investment: IMF

The International Monetary Fund (IMF) says “uncertainty” over the future of Macau’s gaming concession setup is hindering investment in the city. Those doubts, alongside a decline in exports of gaming services from Macau, were factors contributing to the decline in Macau’s gross domestic product (GDP) in the first two quarters of 2019, stated the body in a statement to Portuguese news agency Lusa.

The IMF mission chief for Macau, Mariana Colacelli, was quoted in the statement as saying that investors would need clarity regarding the city’s six gaming licences in order to regain confidence.

“The uncertainty created by the deadline of [the existing] gaming licences in 2022 will have to be resolved for investment [in the city] to recover,” said Ms Colacelli.

Several local gaming lawyers and scholars told GGRAsia earlier this month that Macau’s six casino business licensees have a good chance of having their local gaming rights refreshed beyond their upcoming expiry dates in 2022.

A new local government will be in post in the lead up to that process. Chief Executive-designate Ho Iat Seng takes office this December. The amendment of Macau’s gaming law framework would be one of the key tasks to be addressed by the new administration, said Mr Ho last month.

The IMF said in its latest World Economic Outlook report published last week that it expected Macau’s GDP to fall by 1.3 percent this year and by 1.1 percent in 2020.

That was in contrast with a forecast released earlier this year. In May, the IMF had forecast that the annual rate of growth in Macau’s GDP would be 4.3 percent this year and plateau around 4 percent in the medium term. The body said at the time that growth in the VIP gaming market in Macau would be subdued in the medium term.

Macau’s GDP fell by 1.8 percent year-on-year in real terms in the second quarter 2019, after declining by 3.2 percent in the first three months of the year, according to official data. The decline coincided with a slowdown in the city’s gaming industry.

The IMF’s Ms Colacelli said in her statement to Lusa: “We forecast a contraction for [Macau’s economy] in 2019 as gaming revenues are negatively affected by China’s [economic] slowdown.”

Real exports of gaming services from Macau – a measure of what visiting gamblers contribute to GDP – were down 0.8 percent in value in the second quarter of this year than a year earlier, according to official data. That was an acceleration from the 0.6 percent year-on-year decline recorded in the first quarter.

Casino gross gaming revenue (GGR) in Macau – a measure of casino industry performance – fell by 0.5 percent year-on-year in the three months to June 30. The aggregate casino GGR for the first nine months of 2019 stood at MOP220.30 billion (US$27.27 billion), a contraction of 1.7 percent year-on-year, showed official data.

But Ms Colacelli said there were also some “positive” developments, noting that new land reclamation projects in Macau could ease house prices and make growth sources less dependent on the city’s gaming industry, Lusa reported.


  • tweet
Related articles
  • Investor urges MGM Resorts to sell 20pct of Macau unit
    Investor urges MGM Resorts to sell...

    Jan 07, 2021  

  • DICJ deputy director steps down, takes unpaid leave
    DICJ deputy director steps down, takes...

    Jan 06, 2021  

More news
  • Digital yuan eventually for Macau mass bets mulls Bernstein
    Digital yuan eventually for Macau mass...

    Jan 22, 2021  

  • Macau Covid-19 case no bar to mainland travel ties
    Macau Covid-19 case no bar to mainland...

    Jan 22, 2021  


Latest News

Digital yuan eventually for Macau mass bets mulls Bernstein

Digital yuan eventually for Macau mass bets mulls Bernstein

Jan 22, 2021  

Were China’s central government-backed digital yuan (CNY) to be adopted in Macau for casino chip transactions, it could in the long run benefit mass and premium-mass play, as cross-border money...
Read More
Macau Covid-19 case no bar to mainland travel ties

Macau Covid-19 case no bar to mainland travel ties

Jan 22, 2021  

Mohegan seeks govt nod to delay Inspire opening

Mohegan seeks govt nod to delay Inspire opening

Jan 22, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Partners

Pick of the Day

"The entire company is eagerly anticipating the launch of our newest themed destination – The Londoner Macao"

Wilfred Wong Ying Wai

President of Macau-based casino operator Sands China



Most Popular

  • Sands China sixth Macau op to pledge staff extra paymentSands China sixth Macau op to pledge staff extra payment January 21, 2021
  • Londoner Macao first phase launch Feb 8 says Sands ChinaLondoner Macao first phase launch Feb 8 says Sands China January 21, 2021
  • Wynn and Melco also flag bonus for Macau staffWynn and Melco also flag bonus for Macau staff January 19, 2021
  • Investors see 2H Macau gain, rebound 2022: BernsteinInvestors see 2H Macau gain, rebound 2022: Bernstein January 19, 2021
  • Melco likely to take on more debt for expansion: Moody’sMelco likely to take on more debt for expansion: Moody’s January 20, 2021
Copyright 2014-2020 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us