Macau tendering process to launch with seven prospective licensees

Macau’s long-awaited establishment of its second major gambling licence tenure takes another step forward this week, as the local legislature announced tender bids for new concessions would be reviewed from this Friday. The onset of the new licensing period was due to commence earlier this year, but lengthy gaming reform negotiations, coinciding with complications caused by the pandemic, put paid to a mid-year launch.

The special administrative region has decided to condense this round of licenses from twenty to ten years in duration and has also tightened up a significant number of gaming regulations, allowing the city-state more visibility on operator practices and strategies. However, the number of available licenses remains consistent, with six permits yet again put out to tender.

All six of Macau’s currently active casino entities have submitted bids, comfortably registering their application prior to Wednesday’s evening 5.45pm deadline. However, a surprise bidder emerged late on in the process, with GMM Limited adding itself to the candidate list as a new potential suitor. Although officially registered as a Macanese enterprise, GMM is backed by Lim Kok Thay, the Malaysian gambling tycoon who heads up Genting, one of Asia’s most influential gaming firms.

However, although GMM’s late activity will undoubtedly ruffle a few feathers, many believe the original six concessionaires will retain their licenses given the nature of both past and recent events.

‘’We think it’s unlikely for a government to choose a new foreign operator over incumbents, who have invested billions of dollars and employed local staff over two decades, including in an unprecedented downturn like this” said prominent analysts DS Kim and Livy Lyu, who are affiliated to JP Morgan Securities.

The city-state hopes to launch its new licensing term, with six operators primed for action, on the first day of 2023.