The Macau government remains vigilant in overseeing the implementation of non-gaming investments by the city’s casino operators to ensure adherence to their contractual commitments. This was highlighted by the Secretary for Economy and Finance, Tai Kin Ip, during a recent meeting of the city’s Legislative Assembly on Friday. Mr. Tai emphasized the government's role in ensuring that each operator fulfills its obligations as stipulated in the existing concession contracts.
Details of Non-Gaming Investment Commitments
Under the terms of their concession contracts, each of the six casino operators in Macau is required to undergo a comprehensive review of their operations and compliance with contractual obligations every three years. This review includes an evaluation of their adherence to the non-gaming investment plans they have pledged. These plans are a crucial part of the operators' commitments to the local government, which were made prior to the granting of new 10-year concessions starting in January 2023.
The operators collectively promised an initial investment of MOP108.7 billion (US$13.5 billion) in non-gaming projects. This amount was later increased by 20 percent after the city's casino gross gaming revenue exceeded a threshold of MOP180 billion for the full year of 2023. As part of these new concessions, each operator submitted an overall investment plan to the Macau government, covering the period from 2023 to 2032.
The operators are now obligated to provide the Macau authorities with an 'annual execution proposal' for each year, detailing specific projects mentioned in their concession investment plans. These proposals must include the proposed spending amount and the execution schedule for the relevant year. They are to be submitted up to three months before the start of each calendar year. To date, none of these annual execution proposals have been disclosed to the public.
Reporting and Compliance Measures
Additionally, the operators are required to submit a report by March 31 of each year, detailing the execution of the previous year's proposal. They must also provide progress reports every two months on their spending related to the concessions. The Macau government retains the authority to request detailed reports on the progress of specific projects at any time. These execution reports, like the annual execution proposals, have not been made public thus far.
The specific investment commitments under the existing concession contracts vary among the operators. The MGM group has pledged a total investment of MOP16.70 billion over the next decade, covering both gaming and non-gaming investments. The Galaxy Entertainment group will invest a total of MOP28.35 billion, while the Sands group has committed to MOP30.24 billion. The Melco group is set to invest MOP11.82 billion, the Wynn group has committed to MOP17.73 billion, and the SJM group has proposed a total investment of MOP14.03 billion.
During the Legislative Assembly meeting, concerns were raised by lawmakers about the progress of these non-gaming investment plans. In response, Mr. Tai reaffirmed the government's dedication to rigorous oversight, ensuring that the casino operators meet their non-gaming investment obligations as per their contractual agreements.
Source: Macau govt monitoring non-gaming spend by casino operators: Finance secretary, GGRAsia, March 31, 2025.
Posted by Wizard
Apr 01 2025
Apr 01 2025
Comments
No comments for this article.