Bloomberg Macau operators get new licenses to continue operations

The six casino operators of Bloomberg Macau won new licenses to continue running their businesses in the city, as Genting Group failed in its attempt to gain entry into the major gaming hub.

The committee in charge of the bidding of new licenses didn't specify how long the permits would last, but said at a press conference on Saturday that the government will discuss contract details with the winners later.

The operators are Galaxy Entertainment Group Ltd., MGM China Holdings Ltd., Sands China Ltd., Wynn Macau Ltd., Melco International Development Ltd. and SJM Holdings Ltd.

The announcement concludes a change to Macau's gambling industry that began in September last year when authorities proposed new gaming regulations to strengthen government control over casino operations and to crack down on junkets in order to solicit high-rolling bettors from mainland China, where gambling remains illegal. The law was passed in June and the bidding process for new gaming licenses started at the same time, with existing ones due to expire by the end of the year.

The decision to retain all existing operators eliminated the uncertainty facing the industry, which was hit by the double whammy of Covid-induced tourism drought and China s crackdown on high rollers to curb capital outflow. By reshaping Macau's gaming landscape, Beijing is pushing the enclave to reduce its reliance on gambling - which contributes 80% of the local government's income - and diversify into other sectors such as tourism, conferences, Chinese medicine and finance.

A Macau official said at the briefing that license holders must prioritize the safeguarding of local employment and invest in the non-gaming segment of the businesses.

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