• 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

Macau concession talks to add volatility in 2018: Nomura

Nov 20, 2017 Newsdesk Latest News, Macau, Top of the deck  


Macau concession talks to add volatility in 2018: Nomura

Assuming that the debate on the eventual refreshment of gaming concessions in Macau is likely to start next year, Japanese brokerage Nomura said in a note it expects the first round of discussions to involve the licences of SJM Holdings Ltd and MGM China Holdings Ltd.

The concessions of the six current Macau operators expire on various dates in either 2020 or 2022, with the respective licences of SJM Holdings and MGM China set to expire in 2020.

“A source suggests that discussions will begin mid-2018 for SJM and MGM whose concessions are set to expire in 2020, but to the best of our knowledge, no substantive conversations have begun,” said the Nomura analysts in a note last week.

“As these discussions begin, given the high level of uncertainty and the earnings before interest, taxation, amortisation and depreciation that’s at stake, we expect greater stock price and valuation volatility,” it added.

Macau’s Chief Executive, Fernando Chui Sai On, stated last week that mid-2018 would be an “appropriate” time to provide more details regarding any extension of gaming rights for Macau’s current gaming concessions and sub-concessions.

The Nomura analysts said most Macau operators “agree that they must ‘rebid’; that [the term] concession ‘renewal’ is incorrect in that it does not account for the high bar that the government has set for extending a concession”.

According to Macau’s gaming law, it would be possible for the territory’s government to renew the existing contracts for a maximum period of five years. But once a gaming concession contract expires, the new concession will have to be granted via a public tender.

In July, Macau’s Secretary for Economy and Finance, Lionel Leong Vai Tac, said the government was set to analyse various options – including the possibility of legal amendment to existing terms and conditions – regarding any extension of gaming rights for Macau’s operators.

According to Nomura, successful refreshment of gaming concessions “will likely depend on the operators having delivered on: an adequate mix of non-gaming amenities; compliance with tighter anti-money laundering and know-your-customer regulations; and reinvestment in Macau”.

Nomura additionally said that it “doubts” that all concessionaires would be dealt with on precisely the same footing. “Other factors that could come into play include: ownership structure; relationship of senior management with Beijing; and dividend policies relative to reinvestment practices,” the brokerage said in its memo. It added: “At the end of the day, Beijing has set up criteria that will determine the degree of renegotiation success.”

Speaking to reporters on Sunday on the sidelines of a public occasion, the chief executive of SJM Holdings, Ambrose So Shu Fai, said the existing number of Macau-based casino operators is “sufficient” for the needs of the market. Mr So additionally said that more important for the market was to “control” the actual numbers of live-dealer gaming tables.

Another executive director of SJM Holdings, Angela Leong On Kei, was quoted by Chinese-language newspaper Macao Daily News as saying that the government should announce soon the plans for the refreshment of the gaming concessions. Ms Leong reportedly said the government should establish “a concrete work plan” for the refreshment of the concessions and liaise with the gaming operators, in order to guarantee that the process runs smoothly for all parties involved.


  • tweet
Related articles
  • Macau ops share junket deposit liability: Macau top court
    Macau ops share junket deposit...

    May 16, 2022  

  • IGT 1Q revenue slightly up y-o-y, on higher gaming sales
    IGT 1Q revenue slightly up y-o-y, on...

    May 11, 2022  

More news
  • New Lim cruise biz only months after GEN HK in liquidation
    New Lim cruise biz only months after...

    May 18, 2022  

  • Kangwon drove 2021 S.Korea casino revenue growth: govt
    Kangwon drove 2021 S.Korea casino...

    May 18, 2022  


Latest News

New Lim cruise biz only months after GEN HK in liquidation

New Lim cruise biz only months after GEN HK in liquidation

May 18, 2022  

A casino cruise brand reportedly controlled by Malaysian entrepreneur Lim Kok Thay is to launch services from Singapore fewer than five months after the Lim family-founded Dream Cruises brand of the...
Read More
Kangwon drove 2021 S.Korea casino revenue growth: govt

Kangwon drove 2021 S.Korea casino revenue growth: govt

May 18, 2022  

Over 7.9mln Bloomberry shares vested to some senior execs

Over 7.9mln Bloomberry shares vested to some senior execs

May 18, 2022  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day


US$10 billion

Target set by gaming equipment and online content provider Light & Wonder for total capital creation from 2022 to 2025



Most Popular

  • Wynn CEO, Macau execs in base pay cut in return for sharesWynn CEO, Macau execs in base pay cut in return for shares May 17, 2022
  • Macau repeat visitors denied visa by China says BernsteinMacau repeat visitors denied visa by China says Bernstein May 16, 2022
  • U.S. says Steve Wynn ‘foreign agent’, lobbied for ChinaU.S. says Steve Wynn ‘foreign agent’, lobbied for China May 18, 2022
  • Alleged bribe offer to ex-Wynn manager probed by HK, MacauAlleged bribe offer to ex-Wynn manager probed by HK, Macau May 17, 2022
Copyright 2014-2022 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us