The Macau Government is planning to terminate its concession contract with the company responsible for the Macau Jockey Club‘s horse racing operations.
In a dispatch published in the Official Bulletin today, it was revealed that the Office of the Chief Executive delegated on January 9 to the Secretary for Economy and Finance, Lei Wai Nong, all the powers necessary to terminate the contract granting the exclusive exploitation of horse racing with Companhia de Corridas de Cavalos de Macau, S.A.
The racetrack has faced several financial problems in recent years. In 2018, the Macau Government revealed that the Jockey Club owed the State around $150 million in taxes. Even so, a 24-and-a-half-year extension to the racetrack concession until 2042 was granted.
Last year it was reported that the Macau authorities had prohibited the racetrack from importing horses and accepting bets from outside the city, with the closure of the track discussed but denied by the authorities, who ended up approving the 2023/2024 season of the Jockey Club of Macau.
At the end of last year, the racetrack planned to reduce the horse races starting in December and announced a 30 percent reduction in horse betting prize money, which was scheduled to commence last Saturday.
However, the decision was withdrawn after receiving strong protests from the employees.
According to the latest data from the Macau gaming regulator (DICJ), the MJC recorded accumulated losses of MOP2.1 billion ($260.2 million) in 2022, an increase of about MOP200 million ($24.7 million) compared to the previous year, while horse racing revenues dropped from MOP47 million ($5.8 million) in 2021 to MOP39 million ($4.8 million) in 2022.
The gross revenue from horse races stood at MOP32 million ($4 million) in the first nine months of the year. Despite the income improvement from the previous year, the horse race betting turnover is reducing yearly.
The horse racing operator committed to investing the MOP1.5 billion ($190 million) in stages to upgrade existing facilities and develop non-gaming offerings.
These plans included constructing new commercial areas and restaurants, two hotel blocks, two apart-hotel blocks, a theme park, a tennis court, and an equestrian school. Some of these projects are expected to be completed by 2024, while others are scheduled until 2026.
When questioned on this matter last year, Secretary for Economy and Finance, Lei Wai Nong, only said at the time that “operators must perform their obligations strictly by the requirements of the law and the concession contract”.
