The Macau government on Friday announced it has extended the licenses of SJM and MGM to June 26, 2022, following requests from both operators.
The announcement was made by the Secretary for Economy and Finance Leong Vai Tac during a press conference organized by the Office of the Government Spokesperson at the Government Headquarters.
According to a statement, the government made the decision to extend the licenses in order to assist its work relating to a new public tender process for Macau’s gaming concessions. “The extension granted to the two companies was also deemed helpful for the maintenance of social stability, particularly the stability of the job market,” Leong said.
In return for the extension of their licenses, both SJM and MGM has been required to pay the government a one-off amount of 200 million patacas (about US$24.7 million).
It was a decision long predicted by industry observers.
“The extension of the SJM and MGM concessions is not unexpected in our view and this has been consensus thinking for some time,” said Bernstein in a note on Friday.
“Simply put, we believe the extensions have more to do with making the ultimate task of the license rebid situation easier, while at the same time making sure the labor market remains stable,” said Union Gaming.
However, it is still unclear of how the government will tackle the rebidding process come 2022. (AGB)