Sands China requested USD 6 M for gaming license extension

This month Secretary for Economy and Finance Lei Wai Nong announced its intention to extend the term of Macao’s six concession and sub-concession contracts from June 26, 2022 until December 31, 2022 in order to ensure sufficient time to complete the
amendment to the gaming Law and conduct a public tender for the awarding of new gaming concessions.

The Macau SAR currently holds three main concessions – Galaxy, SJM and Wynn – and three sub-concessions – Melco, MGM and Sands – with authorities having already confirmed the sub-concession system would not be included in the new gaming law.

All six gaming concessions and sub-concessions permitted to operate casinos or gaming areas have already submitted extensions requests with the formal extension yet to be announced by authorities.
TDM Radio previously reported that gaming operators will have to pay a special premium between MOP50 million and MOP80 million for the six-month extension of their gaming license contracts, and a bank guarantee reaching up to MOP1.6 billion to cover possible employee dismissals.

According to Sands China, the Macau government invited its subsidiary Venetian Macau Limited – a sub-concessionaire linked to the Galaxy Entertainment group gaming license – to submit a formal request for an extension along with a commitment to pay up to MOP47 million, which the concessionaires submitted on March 14.

VML also had to provide a bank guarantee to secure the fulfilment of payment obligations towards its employees should the concessionaires be unsuccessful in tendering for a new concession contract after its subconcession expires.

“The extension of VML’s Subconcession is subject to approval by the Macau government as well as entering into a subconcession amendment contract with Galaxy,” the group added.

Sands China added that it is actively monitoring developments with respect to the future gaming law amendment and concession renewal process and continues to believe it will be successful in extending its subconcession and obtaining a new license in the future gaming public tender.

“However, it is possible the Macau government could further change or interpret the associated gaming laws in a manner that could negatively impact us,” Sands warned.

The draft of the much-expected gaming law bill was approved by the Legislative Assembly in January of this year and is currently under committee evaluation, with a public tender to be prepared and carried out once it is approved.

By Nelson Moura