Macau’s Chief Executive Ho Iat Seng, considers it “impossible” for the SAR to reach the MOP180 billion ($22.45 billion) goal within 2023.
Under the new gaming contracts, all six gaming concessionaires are mandated to increase their non-gaming investment by around 20 percent of their initial pledged amount if the annual gross gaming revenue of the Macau SAR reaches MOP180 billion ($22.45 billion).
The Macau SAR casino sector generated MOP148.4 billion ($19 billion) in gross gaming revenue between January and October. The value was achieved after October casino GGR jumped 30.6 percent month-on-month, to just over MOP19.50 billion (US$2.42 billion).
The city’s six gaming operators – MGM Grand Paradise Limited, Galaxy Casino Company Limited, Venetian Macau Limited; Melco Resorts (Macau) Limited, Wynn Resorts (Macau) Limited, and SJM Resorts Limited – committed to invest a total of MOP118.8 billion ($15.2 billion) in the development of non-gaming elements under their 10 year gaming licenses.
Operators will be required to carry out “incremental additional non-gaming investment” in the following year with an amount of around 20 percent of their initial pledged non-gaming investment if the Macau SAR’s annual gross gaming revenue reaches MOP180 billion by 2027.
During a press conference after his 2024 Policy Address, the Chief Executive indicated that he could not yet provide a precise estimate of the 2023 gross gaming revenue tally, but considered it impossible to reach the MOP180 billion goal.
Policy address short on gaming
The 2024 Policy Address document was short on details concerning the future of the Macau gaming industry.
The document only refers that authorities will ensure the implementation of the 2024 investment plans and encourage concessionaires to hold more internationally-renowned events in Macau and to enrich local tourism and entertainment-themed products.
‘Operators should also organize inter-sector integration projects that combine consumption, culture and experiences, using technology, and build new high-level tourist entertainment facilities,’ the document reads.
‘Such projects are aimed at promoting non-gaming elements, namely conventions and exhibitions, entertainment shows, sporting events, culture and art, health care, themed entertainment, gastronomy, community tourism, and maritime tourism’.
Authorities did advance, though, that they would update the qualified staff database with new records and carry out a study on the need for professional staff in the gaming, hotel and restaurant sectors.