Analysis: Genting aims to upend Macau casino landscape in bidding war
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Genting is a strong contender to unseat an incumbent Macau casino operator. The Malaysian group has casinos globally including in Malaysia, Singapore, the U.S. and the UK. It does not currently operate in Macao. The stakes are high for Maca's gaming industry as the incumbents have invested more than $50 billion in the past two decades. MacA's government has said only six slots will be available for the seven applicants. Sands China, Wynn Macai, Galaxy Entertainment, MGM China (2282.HK), Melco Resorts, Melko Resort and SJM Holdings (0880. HK) have concessions that expire at the end of the year.
Macau's casino industry is struggling to recover from the COVID crisis. The incumbent companies are still heavily reliant on gambling. Genting has a 40% stake in developing a Macau hotel. It is unclear how it would work if it won a license. The long-term outlook of Macao is not a worry. Macaus is the world's biggest gaming hub by revenue. 90% of its visitation comes from greater China. Beijing has cracked down on the junket industry. SJM posted negative cash flow of HK$1.8 billion from operations in the first six months.
