Image: Reuters Berita 24 English - The largest casino market in the world, Macau , has established a committee to evaluate applicants for n...
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| Image: Reuters |
Berita 24 English - The largest casino market in the world, Macau, has established a committee to evaluate applicants for new casino licences, which are anticipated to be awarded by the end of the year, the government announced on Wednesday.
The rebidding is taking place in the midst of Macau's worst COVID-19 epidemic, which forced the closure of casinos for 12 days in July. Although they have since reopened, there is no activity because the restrictions are only gradually being relaxed.
The panel will also comprise Adriano Ho, the head of the gambling regulator, Maria Helena de Senna Fernandes, the president of the tourism board, Cheong Weng Chon, and Li Wai Nong, the head of Macau's finance and economics.
The government stated on its website that "the bidding committee has the ability to analyse and make judgments on all aspects connected to bidding and the granting of contracts."
When the present operators' contracts expire this year, the action moves the former Portuguese colony one step closer to a potential shake-up of the current operators.
To continue operating in the Chinese Special Administrative Region, Sands China, Wynn Macau, MGM China, Galaxy Entertainment, SJM Holdings, and Melco Resorts must submit new licence applications by the end of the month after this one.
They will be prohibited from operating casinos, which they rely on for their business and in which they have invested billions over the past 20 years, if they fail to acquire new contracts, which are scheduled to start in 2023.
The COVID-19 curbs in Macau are using up around $600 million per month at a time when other gaming destinations around the world are starting to get active again. According to estimates, the casinos should make little to no money for months.
Since the pandemic's beginning, the industry has been in a state of crisis, with revenues falling by 70% in 2021 to $10.8 billion from $36 billion in 2019.
However, the possibility of being unable to conduct business in the future is more terrifying than what casinos anticipate will be a temporary liquidity crunch.
