Genting Group was a surprise entry into the bidding war for a Macau casino license two weeks ago. The group is headed by Malaysian Chinese billionaire Tan Sri Lim. The incumbents operating in Macao since 2002 are now facing the prospect of Genting taking their place.
Genting is a strong contender to unseat an incumbent Macau casino operator. The Malaysian group has casinos globally including in Malaysia, Singapore, the U.S. and the UK. It does not currently operate in Macao. The stakes are high for Maca's gaming industry as the incumbents have invested more than $50 billion in the past two decades. MacA's government has said only six slots will be available for the seven applicants. Sands China, Wynn Macai, Galaxy Entertainment, MGM China (2282.HK), Melco Resorts, Melko Resort and SJM Holdings (0880. HK) have concessions that expire at the end of the year.
Asia Casino News 19 days
Wynn Macau announced Tuesday that it has submitted its tender to the Macau gov't. for a new #gaming concession, to be held under the name of Wynn Resorts (Macau) S. A. READ MORE HERE:
Macau casino operators shot up to 13% on Monday after the city's leader gave some long overdue good news. Macau’s chief executive said on Saturday that China would resume an internet visa scheme for travellers from the mainland and permit group tours probably from November.
Macau's gaming stocks surged on Monday morning. The increase was driven by hopes of tourists from the Chinese mainland. Macau is the only place in China where casinos are legal. China's strict zero-Covid controls have laid waste to the gaming sector. The city leader said on Sunday that Macaese would start allowing group tours from mainland provinces from November. Daily visitation numbers could rise to 40,000, compared with 11,00 in August. Hong Kong is considering scrapping mandatory hotel quarantine for international travellers.
The government of Macau opened bids on Friday from seven companies for licences to operate casinos in the world's biggest gambling hub. GMM Limited, a holding company of Genting Group chairman Sri Lim Kok Thay, made a surprise application. The new casino licences are expected to begin in 2023. The incumbents have invested some US$40 billion in Macao since casinos were liberalised more than 20 years ago. Macaese casinos have been hit by ongoing Covid curbs and travel restrictions. Authorities have also tightened control over gambling operations in former Portuguese colony.
All six incumbent Macau players submit bids for licenses to operate casinos in the world’s biggest gambling hub. GMM Limited, a holding company of Genting Group chairman Sri Lim Kok Thay, applied. Gent operates casinos and non-gaming operations in Singapore, Malaysia, the United States, and Britain. It also made a series of investments in China, including a prime ski resort which hosted the 2022 Beijing Winter Olympics. New casino licenses are expected to begin in 2023. The incumbents have invested $40 billion in Macao since casinos were liberalized more than 20 years ago.
Macau's government opens bids from seven companies for licenses to operate casinos in the world's biggest gambling hub. The winner will be chosen on Friday. Genting is a wildcard, but it has invested heavily in China and has a strong background in theme parks. The new casino licenses are expected to begin in 2023. Macau casinos have been hit by ongoing COVID curbs and travel restrictions. They have collectively invested $40 billion in Macao since casinos were liberalised 20 years ago. It is estimated revenues will drop 70% in 2021 to $10.8 billion from $36 billion.
Wynn Resorts and Related Companies are teaming up to bid for a new Las Vegas-style casino in New York City. The site was previously considered for new Jets and Yankees stadiums. Related wants the casino to spearhead the next phase of its $25bn development of the Manhattan area.
The casino industry has been hit by two major developments in the last few years. The advent of online gaming and the emergence of the COVID pandemic created serious challenges for the industry. However, 2022 has seen the casino's revenue rise. American gaming industry is poised for a second straight year of record revenue.
Macau's government opened bids on Friday from seven companies for licenses to operate casinos in the world's biggest gambling hub. The incumbent players, Galaxy Entertainment, Melco Resorts and SJM Holding submitted bids. Genting, a Malaysian operator, applied for a wildcard license. It had to pay HK$10 million to apply. New casino licenses are expected to begin in 2023. The incumbents have invested some US$40 billion in Macau since casinos were liberalised more than 20 years ago. Macao casinos have been hit by ongoing Covid curbs and travel restrictions.
The Macao government opens offers from seven companies for casino licenses on Friday. Genting is a wildcard, but it is the only one with extensive amusement park experience. The new casino licences are expected to start in 2023. The incumbent operators have invested around $ 40 billion in Macau since the casinos were liberalized more than 20 years ago. Macaese casinos have been hit by current COVID and travel restrictions. Authorities also tightened controls over gambling operations in the former Portuguese colony. They have revenues fell 70% in 2021 to $ 10.8 billion from $ 36 billion.
Lim Kok Thay, chairman of Malaysia's Genting Group, is a bidder for a Macau casino license. GMM Limited, led by Thy, submitted the bid just hours before the window closed at 5:45 pm local time.
The deadline for extending gaming concessions for Macau's casino operators is today, September 14, at 5:45 p.m local time. The licenses expired on June 26. Six operators were granted a short extension until December 31. Wynn Resorts was the first to apply for a new gaming concession. Macao's gaming revenues have been falling due to China's zero-Covid policy and a shift in Chinese regulatory policy. The government is expected to announce the winners by the end of the year. It is estimated that each casino will pay 47 million MOP 47.7 million.
The Macao SAR government has set a deadline of September 14 for gambling operators to submit bids for new licences. The current licences of the six current operators expire at the end of December. Without a new contract, they will be banned from operating the casinos. In 2021, gambling revenue in Macau fell to US$10.8 billion from US $36 billion in 2019. Beijing's policy of 'Zero-Covid' has restricted the arrival of visitors to Maca. The law passed by the National People's Congress created a crime against cross-border casinos found organising or soliciting Chinese citizens to gamble.
Macau's casino losses exceed $2B mark in H1 as they await bidding process; recovery not expected until 2023
All Macau's casino operators reported half-year losses of $2 billion. Total gaming revenue came in at $3.3 billion, but the recovery is not expected until 2023. The city is still recovering from its largest Covid outbreak, which saw thelock-down of casinos for two weeks. The industry is also suffering from virus restrictions from the Mainland. Analysts warn that gaming revenues, the 80% of government tax revenue, could fall further even if the city reopens its border with mainland city Zhuhai.
The global gambling industry is worth $57.5 billion in 2021 and is forecast to grow to $127.3 billion by 2027. Many of the major casino chains and resorts in the US and some in UK are listed companies. They own and run hotels and resort. The sector was hard hit by the Covid-19 pandemic.
Macao's government wants to build theme parks, theme hotels, water parks and other family attractions as a condition of relicensing. The government also wants casino companies to develop nearby Hengqin Island. New law bumps the gaming tax up from 39 percent to 40 percent. There is a tax break for attracting foreign visitors to the area. The Chinese central government will have a seat at the table on all strategic plans. It will also have an eye on any potential changes on the horizon. Las Vegas Sands Corp., Wynn Resorts Ltd. and MGM Resort International are confident they will be successful in the relicensed process.
Apple parts suppliers and Macau casino operators suffer on earnings pressure.
Wynn Resorts provided a $500 million revolving loan to Wynn Macau and Las Vegas Sands loaned Sands China $1 billion. US casino parent companies have worked hard to keep the region’s gambling hub afloat.
Macau has shut down all of its casinos and ordered its residents to stay at home for a week due to an ongoing Covid outbreak.
Wynn Resorts is planning to build a $2 billion integrated casino resort in the United Arab Emirates. The resort is planned to open in 2026. HKS Architects was hired as the design consultant for the resort. The company is also planning the next steps in Las Vegas and Boston. In Macau, the gambling industry is recovering. Billings is now six months into the position of CEO. He believes the UAE offers a real extension of the Wynn brand.
Macau has its first COVID-19 outbreak in eight months. 21 preliminary-positive cases were reported in the local community as of Sunday evening. Schools and non-essential businesses were shut down until at least Tuesday to allow time for mass testing of all residents. Wynn Macau (OTCPK:WYNMF) (OWYNN) fell 3.4%, SJM Holdings (SJMHF) dropped 3,2%, while Sands China (OTCPK/SCHYF), MGM China and Galaxy Entertainment (GXYEF) were off 1.1%. Melco Resorts & Entertainment, Wynnn Resort (WNN), Las Vegas Sands (LVS) and MGM Reserves (MGM) could see an impact when they open back up for trading on Tuesday.
The final version of the gaming law passed by the Macau Legislative Assembly allows for six new concessions with a maximum term of 10 years and a three-year extension possible under certain circumstances. Satellite casinos will be allowed to continue to operate under a management fee agreement but cannot participate in the profit sharing or commission agreement with gaming concessionaires. The minimum capital requirement of 5B patacas must be maintained throughout the license period.
Macau's government will formally sign a six-month licence extension for casino operators on June 23. The extension allows more time for the anticipated rebidding process in the Chinese special administrative region. Wynn Macau, Sands China, MGM China (2282.HK), SJM Holdings (0880. HK), Galaxy Entertainment (080 HK) and Melco Resorts (1128.Hk) applied for extension. They will each need to pay 47 million patacas ($5.81 million) for it.
Laos has taken the first steps in regulating its online gambling industry. The model is similar to the one adopted in the Philippines for Philippines Offshore Gaming Operators. Laos is lower cost and aims for a more favorable tax environment.
Ground-based casinos are luxurious entertainment spots that are popular with tourists. Many casinos have construction costs up to billions of dollars, monumental architecture, and luxurious services. Ignition Casino is one of the most beautiful casinos in the world.
Some Macau casinos have applied for permission to alter their operations in anticipation of coming regulatory changes. The changes are contained in the draft gaming bill currently making its way through the Legislative Assembly.
Las Vegas Union asks Macau Govt. for land transaction records involving Genting and Treasure Island failed casino project
The International Union of Operating Engineers, Local 501, has sent a public record request to the Land and Urban Construction Bureau. The union is investigating the land transaction involving Genting Group and Ao Mio Leong. According to corporate filings, Mios is one of four director group for local real estate firm Easyway Investment Company Limited, which according to union, is linked to triads. In 2007, Gentings Hong Kong and GentING International acquired a 75% interest in a Macau-based entity called Treasure Island Entertainment Complex Limited. Treasure island owned a parcel of land on the Macao peninsula situated along Praca Ferreira do Amaral. Gentinh intended to develop a hotel on this land and enter into an agreement with SJM to operate a casino there.
Macau's Court of Final Appeal ruled that operators and junkets organizers were jointly liable for client deposits in nine cases filed by VIP gamblers. Macau’s gaming revenue in April fell 68% year-on-year to 2.67 billion Macanese pataca ($124 million), the lowest in 18 months. Beijing”s National Immigration Administration“s latest move to discourage mainlanders from traveling and spending money overseas.
Shanghai could be reopening soon. This could have a positive impact on Macau's gaming industry. Las Vegas Sands and Wynn Resorts were the top performers in the S&P on Friday. i in Maca are Wynnn Resort (NASDAQ:WYNN), Las Vites Sands (NYSE:LVS), Caesars Entertainment (CZR), and MGM Resports (MGM).
Gross gaming revenue in Macau fell 68% year-over-year during April to 2.68B patacas ($331M). It was the lowest tally for the gambling region in 18 months. COVID restrictions in Shanghai, Beijing and Hong Kong cut into traffic to Macao during the month. JPMorgan warned meaningful easing to travel may only be seen late this year before ramping up toward a full recovery in 2023. Bank of America remains constructive on the Macua sector.
Macau government's proposed minimum annual target of casino gross gaming revenue (GGR) per table and per gaming machine could hurt operators with low-yielding gaming assets. If local operators fail to meet such GGR targets, they would be required to pay the government the shortfall in the minimum amount of gaming tax. The prevailing gaming rate is 35 percent. The Macau Government imposes the other effective 4 percent relating to other social contributions from the casino operators. CICC Hong Kong estimates the target yield of the gaming tables could stand at US$6,584 win per day, and that of slot machines at $207 win a unit per Day in 2022.
Macau casino stocks are on watch this week. The government in Shanghai has set a new target of zero new cases at the community level by April 20. There were 23,643 new local infections in the city for April 16. Three deaths were reported. Some areas in Zhengzhou Airport Economy Zone were placed under quarantine. Jefferies analyst David Katz notes that the near-term outlook for Macau casinos remains bleak due to the Shanghai Lockdown. Outside of China, the casino sector is setting up for a strong 2022 after Delta Air Lines' earnings tipped off a potential boom in summer travel.
Macau casinos generated MOP$3.67bn ($459m) last month, down 86% from March 2019. Nevada recorded $1.1bn in gaming revenue in February, the 12th consecutive month that Nevada casinos generate more than $1000m. Las Vegas Strip revenue is up 10% over pre-pandemic levels in 2019, up from $800m in 2013.
Macau gross gaming revenue fell 56% in March to 3.67B patacas ($455M). Ongoing COVID restrictions and concerns held back traffic during the month. Macau GGR was down 24.8% for Q1 on a year-over-year basis. Citi pushed back the timeline for a lifting of travel restrictions on China and Hong Kong to Q4 from mid-2022.
A Casino With High Stakes’ Tables + Luxury Interiors Is The Preserve Of The Rich + Famous: The Best Casinos For Celebrity Sightings
For years, visiting a casino was the preserve of the rich and famous, but now anyone can enjoy the gaming tables and slots. With so many luxurious venues around the world, which casinos are the best place to go if you want to see the stars?
Wynn has two casinos in Macau, the Wynn Macao and WynN Palace. Both resorts lost money in the final months of 2021. Maca accounted for 70% of Wynns' business three years ago. Wynner has to focus more on its Las Vegas business.
The combined net debt of the six licensed casino operators in Macau has quadrupled since the start of 2019 to more than $20 billion. The government for the former Portuguese enclave has provisionally agreed to extend the operators’ lucrative concessions by a further six months to the end of this year.
The combined market cap of the Hong Kong-listed sextuplet plummeted by 8.7% from Friday to Monday to stand at approximately $46.66 billion. It followed a 6.3% drop last weekend to about $51.56 billion despite news that the government for the former Portuguese enclave had agreed to extend the operators’ concessions by a further six months to the end of this year.
The six casino companies operating in Macau have been given six-month extensions to their licenses. The licenses were due to expire on June 26th, but the new expiration date is December 31st. Melco Resorts, Galaxy Entertainment, SJM Holdings, MGM China, Sands China and Wynn Macao each have to reapply for a license in order to keep operating.
Macau gross gaming revenue gained 6.1% in February to 7.76B patacas ($0.96B). Ongoing COVID restrictions and a crackdown on two junket operators impacted traffic negatively. Macau GGR is down 8% on a year-over-year basis. Jefferies is not confident that a positive turn for Maca is close.
DEQ Systems Corp and LT Game announce a cross-border partnership to deliver EZ Baccarat on LT's Live Multi Game (LMG) systems worldwide. LT will also distribute the traditional live table game version of Ez Bacarat in Asia Pacific. EEZ is a baccararat game with over 7,000 player positions to date. It is available in Macau at MGM Macao and Wynn Macua casinos. It's also available on electronic terminals. There are 3,900 LMG terminals installed worldwide, 3 of which are in casinos in the Macaese.
Macao is getting tougher on its casino scene as part of an effort to control crime and capital outflows. Draft gaming bill pending in the Macao Legislative Assembly would stop casino operators from issuing junket licenses and share revenue with any gambler-to-casino intermediaries. It would limit the number of newly licensed casinos to six, with terms of 10 years, half the current time. Mainland Chinese tourists, the top source of casino revenue, had taken so much cash to the offshore territory by 2013 that China began tightening rules to curb money laundering.
Las Vegas casino worker union calls for US federal investigation on gaming operators’ former ties with Suncity
Suncity was a junket operator operating in Macau. It was arrested in November 2021 and later filed for dissolution. Suncity worked with US-based casino licensees with overseas operations. Union wants the U.S. federal authorities to investigate the case. The union represents over 2,000 Las Vegas casino workers. They are mainly construction workers who work as heavy equipment operators and mechanics in casinos. The industry has been tainted by reports of organised crime influence and money laundering. Since December 2021 at least three gaming concessionaires, Sands China, Melco Resorts and Wynn Macao have cut ties with all local junkets.
Macau gross gaming revenue fell 20.9% in January to 6.34B patacas ($785M). The GGR growth rate was worse than the +1.8% recorded in December. The crackdown on Macau junket operators and tighter border restrictions ahead of the Winter Olympics also impacted Macao traffic. Jefferies has a cautious stance on the Macua sector.
The casino industry is changing fast. Online gaming is becoming legal in many U.S. states. Macau is the largest gambling market in the world. The island will be reopening in 2022. Casino stocks are considered consumer discretionary stocks. They operate like hotels, relying on room occupancy and conventions for revenue. Spending on gambling and tourism is correlated with the overall health of the economy.
Macau is considering licensing six new casino concessionaires. The government of Macau may require them to meet minimum annual gross gaming revenue targets. If they don't meet them, they will be fined.
Mass gaming is going to be the big driver of gross gaming revenue in Macau in 4Q2021.
The stock price of Las Vegas Sands Corp. increased by over 12% during intraday trading today. Macau government announced the number of new casino operators allowed to function is going to be limited to 6 concessionaires. Their operating period is also going be halved to 10 years.
Fitch Ratings Inc insists that US-controlled casinos in Macau will not be treated any differently from casinos owned by Chinese entities. US casino subsidiaries are owned and operated by public entities listed in Hong Kong.
Las Vegas and Macau took big hits during the COVID-19 pandemic. The latest gross gaming revenue numbers suggest the Vegas recovery continues to outshine struggling Macao.
Wynn Macau is giving its employees a holiday bonus this month. The bonus reflects on the dedication of the team.
Wynn Macau and Melco Resorts have severed ties with junket operators.
Macau casinos seek to replace junket revenues amid crackdown, industry uncertainty. VIP gaming rooms, which made up about a third of Macau’s gaming revenues in 2019, have taken a big hit following the arrest last month of Alvin Chau, head of Suncity. Since the arrested, shares of Wynn Macao have plunged about 23%, Sands China has fallen about 13%, and MGM China dropped 20%. The future of the industry is in mass and premium mass recovery. It will imply controlling COVID-19. The pace of recovery in late 2021 and 2022 depends on COVI outbreaks and travel restrictions coming down.
Macau's casinos are struggling after shutting most of their gaming rooms catering to wealthy gamblers. The Chinese government's recent crackdown on the junket business is calling into question the financial outlook for casino operators. Analysts say the future of the industry depends on attracting mass-market players. The future remains in mass and premium mass recovery. It depends upon controlling COVID-19. Wynn Macau, Sands China and MGM China did not respond to requests for comment. They did however not comment on their plans to replace VIP revenues. In November, Alvin Chau, the head of Maca's biggest junkets, was arrested and charged with setting up an internet platform based in Macao that let bettors in mainland China place overseas wagers.
Both Las Vegas and Macau took big hits during the COVID-19 pandemic. Vegas is recovering well, while Macao is still struggling.
Alvin Chau, Suncity Group Holdings’ CEO, was among those detained. Macau casino stocks tanked this week after the arrest of 11 junket operators.
A Macau court ordered Wynn Resorts to pay US$769,447 to a high roller who had his cash stolen from him. The court ruled that Dore Entertainment Limited, which works as a gaming promotor and intermediary for WynN's Macao gaming operations, is partly responsible for this.
Wynn Resorts is a high-end casino company with operations in Las Vegas, Boston and Macao. The company announced on Friday that it is no longer spinning off its online gambling business to a SPAC. Outgoing CEO Matt Maddox has been through a difficult tenure as a gambling CEO.
Macau casino operators lost about $18 billion in market value. The government is considering a new regulatory overhaul. Macau's lucrative casino licences are up for rebidding next year. Some analysts have downgraded their view of near-term prospects for casino companies in Maca. J.P. Morgan is downgrading to neutral or underweight all Macao gaming names from overweight. It is because of the tougher scrutiny on capital management and daily operations ahead of licence renewals. They must all rebid for licences when current permits expire in June 2022.
The firms behind the 41 casinos in Macau have implemented new rules that require employees to be fully vaccinated or present weekly negative viral diagnostic tests. The new regime has been implemented by Sands China Limited, MGM China Holdings Limited and Melco Resorts and Entertainment Limited.
Macau's secretary for economy and finance launched a 45-day public consultation process Wednesday. The government could revise current rules for next year's auction of gambling licenses to possibly include "government supervision" of their day-to-days operations. Las Vegas Sands shares were marked 6.4% lower in early trading Wednesday to change hands at $36.25 each. Wynn Resorts shares tumbled 9.8% to $83.22 each, while MGM shares fell 3.55% at $40.32 each but still had a year-long gain of 26%.