Macau casinos to invest nearly $12 billion by 2032
Although the dynamics of Macau’s casinos are up and down, operators in the former Portuguese enclave continue to compete for a particularly expensive license. After all, Macau is still the casino capital of the world, and having a privileged location in the small special administrative territory remains an opportunity for many companies.
In fact, according to Teledifusão de Macau (TDM), a radio and television station serving the Macau region, the casinos already there are expected to invest about $12 billion over the next ten years, a sum that could breathe new life into the local economy.
Macau casino operators in talks with local government
Eager to extend their current licenses, Macau’s casino operators are negotiating with the local government. But this will probably not happen without significant investments. Today we learn from TDM that the casino companies are expected to inject about 12.4 billion dollars by 2032.
To date, seven candidates are vying for one of the six licenses up for grabs. These are the incumbent operators Sands China, Wynn Macau, Galaxy Entertainment, MGM China, Melco Resorts and SJM Holdings. However, a newcomer has entered the race, and not the least: Genting Malaysia.
According to the latest reports, Galaxy Entertainment and Sands China could invest around $2.5 billion each, with other candidates willing to put smaller sums on the table.
Malaysian group Genting a credible threat to incumbents
According to broadcaster TDM, negotiations with the Macau government are almost complete. Indeed, in order to obtain a operating license effective January 1, 2023, the bidders have agreed with the local elected officials as to the nature of their respective development projects.
In many ways, the Malaysian Genting Group is a credible threat. It is serious enough to dethrone any of the incumbent operators, which could be the biggest shake-up in the industry since Macau found its feet in the early 2000s.
Note that the tender comes at a good time for operators, as China’s “one size fits all” policy is being implemented. zero COVID “having deprived them of many of their potential revenues over the past two years. Still, analysts say the recent easing of travel restrictions will not have a major positive effect on Macau’s casino revenues, and the new gaming legislation is not without impact for the time being.
