The Macau government is set to ignore a clause in the concession contract of SJM and MGM, which requires the companies to hand over casino and gaming equipment to the government in March next year.
According to a report from Gambling Compliance, under the concession contract, each of Macau’s concessionaires is required to ‘automatically revert’ all casinos and casino equipment to the government without compensation.
This clause was retained after the Macau government extended MGM and SJM’s concessions to June 26, 2022, to match the expiry of the other operators’ concessions.
However, it is understood that the local authorities will not be executing this provision.
A legal source, in comments to Gambling Compliance, said he/she was “mystified” with the government’s decision to ignore the clause, as it goes against the authorities’ interests.
This Dossier results from the “Life After POGOs” editorial project by Asia Gaming Brief which culminated with a pop-up digital forum on 9th December to discuss potentials ramifications in the industry.
The Macau government has added Shijiazhuang, the capital of Hebei province and Shenyang, the capital of Liaoning province, to the list of destinations on which a 14-day mandatory quarantine will be imposed.
Over the years, many of the answers have been remarkably prescient in their forecasts for the near-term direction of Asia’s gaming industry. However, we can safely say that no one came anywhere close to guessing
what 2020 may have had in store.
While nowhere in the world has escaped the economic fallout from the Covid-19 crisis, Macau has been hit harder than most, with forecasts for gross domestic product to shrink more than 50 percent this year.