MGM China extends license through end of 2022

MGM China Holdings Ltd has become the latest casino concessionaire in Macau that has agreed to cover the government’s licensing extension conditions and contribute the requested $6 million fee to have its license extended through December 31, 2022. Originally, all licenses were scheduled to expire in June, but this has been readjusted, given the sweeping changes the special administrative region government enacted over the last couple of months.

The laws concern the overall terms of each casino license but also the way junkets may interact with businesses and customers. With more details to be determined in the coming months, Macau has seen it fit that it offers concessionaires the option to extend their current licenses in exchange for a fee or shut down in June and await reopening under the new licensing system. MGM China has picked the former option and has renewed its licenses for MGM Macau and MGM Cotai.

Both entities should now be operational through December 31 and continue to run should the company get a full license for the next ten years. One of the changes Macau passed in the licensing conditions was the reduction of the time total a license is extended, down to ten years presently. MGM China Holdings is not the only company extending its licenses with all other stakeholders agreeing to the terms of the government.

Wynn Macau, Melco, and Sands China have all paid the fees necessary to continue running throughout the end of the year and hoping to stay on the government’s good side. There have been sweeping changes in the sector which will see the reduction of the overall license length and the addressing of numerous potentially untoward practices, such as the way junket operators and casino companies operate.

One of the biggest changes is holding casinos liable for their junkets and each junket only being able to work with a single casino – whether this is a main one or a concessionaire of a satellite brand. These changes reflect Macau’s ambition to bring more transparency to the sector but also create a framework that is based on objectivity. MGM China chairperson Bill Hornbuckle confirmed that the group wanted to respond proactively to any changes the government may seek to introduce and demonstrate the company’s commitment to the sector and Macau.

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