Gaming concession tender to accept at least eight bids in case of limited format

The framework for the public tender – which will come into force tomorrow (Wednesday) – states that in a restricted tender scenario at least two more selected bidders must be admitted to the consultation phase based on the number of concessions put out to tender, unless otherwise decided by the Chief Executive.

Under the newly approved Macau SAR gaming law, no more than six gaming concessions will be awarded by local authorities, with officials having repeated several times that the public tender will not just be a renewal but an “international tender”.

The regulations also underlined that only public limited companies incorporated in the SAR and whose corporate purpose includes the exploitation of games of chance in casinos will be admitted to the tender.

However, under regulations left from the previous gaming law, the Macau government may, exceptionally, admit ‘commercial entrepreneurs of recognized reputation’ who do not meet the aforementioned requirements provided that they constitute a public limited company in the SAR with these requirements, in terms and deadlines to be included in the order of the Chief Executive.

According to the tender regulations, in the selection of bidders and in the appraisal of proposals several factors will be evaluated including: the proposed premium variable amount; plans aimed at expanding customer markets in foreign countries; experience in operating games of chance in a casino or in related areas; investments in gaming-related and non-gaming-related projects; casino management plan; a proposal to inspect and prevent illegal activities in casinos; and social responsibilities they intend to assume.

Bidders will also have to propose the minimum number of gaming tables and gaming machines that the concessionaire plans to operate within the concession period.

The opening of tender is made by a Chief Executive dispatch defining pre-qualifications; the tender procedures including the date for receipt of proposals; the deposit amount to be provided by eventual competitors for admission to the tender; the concessions framework and the requirements for admission to the tender.

The forms for the disclosure of data on competitors, concessionaires, or their shareholders or directors for the suitability review that will be carried out have also been published today.

The suitability verification process is instructed by the Gaming Inspection and Coordination Bureau and ends with the preparation of reports by its director defining the suitability of the bidders, shareholders holding 5 per cent or more of the share capital, and its directors and the main employees with relevant functions in the casinos.

Bidders will also have to prove they have an adequate financial capacity, providing investment or banking guarantees, with the costs borne by the applicants and deducted from the amount of the deposit to be provided for admission to the tender.

TDM Radio has previously reported that gaming concessionaires are already creating the legal teams that will prepare the documentation to be submitted to the public tender, which is expected to advance in August.

by Nelson Moura