• 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
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Genting Macau win unlikely, poss ally to incumbent: broker

Sep 19, 2022 Newsdesk Latest News, Macau, Top of the deck  


Genting Macau win unlikely, poss ally to incumbent: broker

Brokerage Sanford C. Bernstein Ltd said in a Monday note it did “not expect” a unit of global casino operator Genting Malaysia Bhd to win “an outright” Macau concession and displace a current veteran of the market in the current public tender process.

But analysts Vitaly Umansky and Shirley Yang said the brokerage could envisage Genting “positioning itself to be a prospective rescuer,” in the event that an incumbent concession holder “experiences financial difficulties and may require a partner”.

GMM Ltd, an indirect unit of Genting Malaysia, submitted on September 14 a proposal for one of the up to six new 10-year Macau gaming concessions slated to start on January 1, 2023. On September 16 – after formally opening all submissions to the tender – the Macau authorities said that proposals by the six incumbent operators had been accepted unconditionally, but that the acceptance of GMM’s was “conditional”, without giving further details.

“We believe Genting is positioning itself as a prospective partner or buyer of an existing operator in the event that a concession holder experiences financial difficulties and may require a partner or could be open to being acquired, with government consent,” wrote Sanford Bernstein.

All Macau’s current operators have experienced cash burn recently, amid start-stop recovery to the city’s gaming market, linked to China’s ‘zero-Covid’ policy, with some operators having a stronger liquidity outlook than others.

The brokerage observed in its Monday note that Macau daily gross gaming revenue (GGR) for September 13 to 18 “dropped post the Mid-Autumn Festival,” a Chinese holiday period, at only MOP75 million (US$9.3 million), down 20 percent week-on-week compared to the MOP94 million average daily rate during September 5 to 12.

“Near-term GGR recovery will remain tepid as the Chinese government continues strict travel policies for long-distance travellers,” wrote Mr Umansky and Ms Yang.

The Sanford Bernstein analysts noted there had been “commentary in Macau and financial press” that Genting’s appearance in the tender scenario was “negative for Wynn [Macau Ltd] as some consider it to be the most vulnerable of the group” of incumbents.

“We tend to disagree and would point to SJM [Holdings Ltd] as having the most issues,” said the brokerage.

In terms of Genting getting a real estate presence in Macau, Sanford Bernstein said it did not have clarity on what “residual ownership” the Genting group might have in a 600-room hotel without casino being developed near the old Lisboa Hotel on Macau peninsula. A portion of ownership belonging to the now-in-liquidation Genting Hong Kong Ltd had been sold off, it was announced early last year.

Sanford Bernstein said there had been commentary about the Genting group “having a good relationship with Chinese authorities,” and having “sponsored” the development of the Genting Snow Park ski resort in mainland China’s Hebei province, which had been used as one of the venues for the 2022 Winter Olympics.

That, and Genting’s experience of running non-gaming – particularly theme parks, at Resorts World Genting in Malaysia and Resorts World Sentosa in Singapore – might work in Genting Malaysia’s favour, wrote Mr Umansky and Ms Yang.

But Sanford Bernstein said it did “not view as very likely” that an outright Macau concession for Genting would be “achievable in the next two to three months”.


  • tweet
Related articles
  • Chau, other defendants ordered to pay US$1.1bln: court
    Chau, other defendants ordered to pay...

    Jan 18, 2023  

  • LVS says to bid for downstate NY casino licence
    LVS says to bid for downstate NY casino...

    Jan 13, 2023  

More news
  • Macau early Feb average daily GGR higher than Jan: JPM
    Macau early Feb average daily GGR...

    Feb 06, 2023  

  • Macau tour trade returns at historic areas, resorts says govt
    Macau tour trade returns at historic...

    Feb 06, 2023  


Latest News

Macau early Feb average daily GGR higher than Jan: JPM

Macau early Feb average daily GGR higher than Jan: JPM

Feb 06, 2023  

Macau’s casino gross gaming revenue (GGR) for the first five days of February is estimated at MOP1.9 billion (US$235.1 million) – or MOP380 million per day – a level that suggests a “45...
Read More
Macau tour trade returns at historic areas, resorts says govt

Macau tour trade returns at historic areas, resorts says...

Feb 06, 2023  

Cambodia ops to Mar 31 for due tax on non-gaming: report

Cambodia ops to Mar 31 for due tax on non-gaming: report

Feb 06, 2023  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day

”The resumption [of mainland package tours] is definitely good news: recovering foot traffic for casinos [in Macau] is really important and their comeback will help with that”

Hoffman Ma Ho Man

Deputy chairman of Success Universe Group, promoter of casino-hotel Ponte 16



Most Popular

  • Return of tours good for mass floor traffic: observersReturn of tours good for mass floor traffic: observers February 3, 2023
  • Jaw-dropping wagers in Macau CNY survey: CitigroupJaw-dropping wagers in Macau CNY survey: Citigroup February 2, 2023
  • Galaxy Macau’s new arena to host K-pop group BlackpinkGalaxy Macau’s new arena to host K-pop group Blackpink January 9, 2023
  • Cyprus president says Melco CoD Mediterranean to aid nationCyprus president says Melco CoD Mediterranean to aid nation February 6, 2023
Copyright 2014-2023 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us