SJM believes new gaming concessions to have 10-year term

Grand-Lisboa-Palace

Management at SJM Holdings told Goldman Sachs that they expect the duration of concessions terms to be around ten years. 

SJM management made the comments during an investor meeting with the firm, adding that they believe that the Macau government is likely to renew the current six gaming licenses. 

In regards to the concession duration, management said this would be longer than five years but shorter than 20 years, and that 10 years would be a “reasonable estimate.”

Earlier this month, Macau released its long-awaited consultation paper on the gaming industry. As part of its proposals put up for public review, the government is considering changes to the length of the concession period and measures to protect local employment.

The document didn’t suggest a number for how many concessions should be issued, or any proposals on their maturity, although it does suggest a 20-year term may be too long.