Macau releases licensing re-tendering rules for concessionaires

Macau has finally revealed the new re-tendering rules and regulations that will guide Macau’s six concessionaires in their efforts to secure new licenses. The re-tendering criteria have been laid bare in detail by the special administrative region’s government and they are binding.

In order to continue operating after December 31, 2022, each of the concessionaires in Macau will need to ensure that their company qualifies and meets these criteria in full. One of the biggest factors in determining whether concessionaires are suitable for a license is whether they are able to bring more foreign tourists to Macau.

This was expected as China is trying to actively shift the attention of mainland citizens away from gambling. However, the industry should continue to operate as it provides substantial tax revenue, authorities in Beijing maintain. Therefore, it’s not surprising that Macau has heeded this call and will now expect concessionaires to work harder on bringing more gaming and non-gaming investment to Macau, despite the largely-restrictive rules passed on junket operators.

There is also a big focus on the corporate social responsibilities that concessionaires will undertake. The re-tendering laws also follow shortly after the announcement of new gambling laws that were settled last month. However, it’s these rules that concessionaires need to meet in order to continue operating.

The rules are no easy task. Published in both Chinese and Portuguese, there are hundreds of pages that bind the prerequisites that must be met in full. With much work to be done, it’s likely that concessionaires have already started working on a framework to ensure that their bids to the Macau government will actually result in license grants.

Some of the rules call for a casino management plan, clear-cut policies that make sure that illegal activities do not take place at the casino, and should they take place – a way to detect and inform authorities. Concessionaires would need to demonstrate in a clear manner how they can boost foreign tourism and what plans they are going to resort to in order to bring more overseas tourists to Macau, both for the purposes of gambling and shopping.

Combing these rules is crucial for the operational future of each concessionaire. The rules come amidst a challenging time for the industry with Macau finally witnessing its biggest COVID-19 outbreak with more than 940 confirmed infections.

This is adding to the companies’ woes as they try to navigate through this period with only 10% of their staff on-site and dwindling cash reserves to fall back on. Yet casino floors are empty, and demands from the sector continue to mount.

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