Macau’s Chief Executive, Ho Iat Seng, is likely to use his executive powers to extend the current casino concessions for a further three years from 2021, Morgan Stanley says in a note.

The firm argues that there is now not enough time for a law to be passed, for the public to be consulted and to prepare the re-tendering process before the concessions expire in June 2022.

Morgan Stanley notes that its view is contrary to the consensus opinion for the public consultation to be finalized in Q4. The firm says the CE has the power to extend for five years, but will only extend for three, as he already extended the concessions of SJM Holdings and MGM China in 2019, who have thus already used up two years.