Six Macau Casino Operators to Lose Gaming Licensing June 2022
Six Macau casino operators are set to lose their gaming rights on June 26, 2022 amidst gaming review.
An in-depth review is in the works for Macau, as the local government takes a look at the gaming industry. The process has been ongoing for quite some time, with officials trying to determine how the industry should improve. The main goal is to find a way for the People’s Republic President Xi Jinping to be happy with the gambling industry in Macau and how it operates. As part of the review, six casino license holders in Macau will lose their operational licensing, and a re-licensing process will take place. This could be a good or bad thing for the providers now offering services in Macau.
Losing Licensing this June
President Xi has stated that Macau needs to do more to ensure that China is not losing out on revenues. The president has long felt that the casinos used tactics to cater to mainlanders and received large amounts of cash in the process, money that should be staying on the mainland, in his opinion.
Currently, the public consultations in Macau connected to new gaming governances have been delayed due to the pandemic. However, it has been stated that the re-licensing process is still on schedule. Lei Wai Nong, the Macau Secretary for Economy and Finance said earlier this week that despite the COVID-19 issues, the re-tendering process remains on track.
According to Lei, the report regarding Macau’s gaming industry and the updated regulatory conditions will go public before the casino licenses expire in June. The government of Macau created a deadline in March for the reports to be published.
Lei stated that the gaming law that casinos operate by now is 20 years old and does not cover certain aspects that need to be covered now. Macau will adjust regulations and consider the opinions of society when making the changes.
Gaming analysts expect to see all six casino operators receive new operating permits. The duration though may not be as long as the original time frame of 20 years. Some project that the licenses will be good for around 10 years, running through 2032.
The reissuing of licensing will be good for Macau as it will bring in new revenues to the region. The area has been hit hard by the COVID-19 pandemic. But not in a way you might think. The region has seen few positive cases of the virus, which is good, but they have also been cut off from the rest of the world.
For quite some time, visitors were not allowed into Macau, and even when they were, a quarantine period was required. The long quarantine upon arrival made it to where individuals did not want to travel to the area. Casinos have suffered from lack of hotel guests and gamers, which has caused a significant drop in the amount of revenues earned.
Junket Groups Already Closing
Junket groups have played a vital role in the casino gaming industry for quite some time. Expected to face scrutiny during the review, most of the junkets have already shut down. For years, the groups worked to bring VIP gamers to Macau from the mainland. Travel was organized and big money spent within these trips.
China feels that junket groups that organize trips are just ways for mainlanders to move money into Macau. After Suncity Group CEO, Founder, and Chairman Alvin Chau was arrested in November, it signaled the end of junkets in Macau.
Most of the junket rooms inside casinos of Macau have shut down already. The Gaming Inspection and Coordination Bureau are said to have told casinos and junkets that gambling credit can no longer be issued to VIP players in Macau.
It will be interesting to see what the review process reveals and if the current license holders will see licensing reissued or if they will be left without the ability to offer services in Macau by mid-June.