Macau extends gambling licenses for SJM and MGM China until 2022 to synchronise expiry date of all six casino concessions
- With the extension, the casino concessions of SJM and MGM China would be synchronised with Sands China, Wynn Macau, Galaxy Entertainment and Melco Resorts
- SJM and MGM China each has to pay the Macau government 200 million patacas (US$24.7 million) for the extension
Macau’s government has extended the gambling licenses of SJM Holdings and MGM China Holdings by two years, putting them on equal footing with four other casino concessionaires that operate in the world’s largest gaming hub.
The concessions of SJM and MGM China will expire on June 26, 2022, the same as Sands China, Wynn Macau, Galaxy Entertainment Group and Melco Resorts & Entertainment Limited. SJM and MGM China will have to pay 200 million patacas (US$24.7 million) each for the extension.
The move would synchronise the bidding and renewal process for all six gambling concessionaires in Macau to align with the next term of the territory’s government, according to a research report by Credit Suisse.
Gambling in Macau, estimated to be seven times bigger than Las Vegas, has transformed significantly since Chinese President Xi Jinping’s anti-corruption campaign of 2012 deterred high rollers in the high end of the US$38 billion industry. Growth returned to the territory after a severe slump from 2014 to 2016, as Macau’s casinos switched gears to recreational gamblers and family-oriented entertainment of the mass market.
Without extending their concessions, SJM and MGM China would have been limited in their ability to expand their mass market offerings. Macau’s government had limited the number of new mass gaming tables at MGM Cotai in early 2019, due to concern over the extension.
